France boasts one of Europe's largest regional economies with vibrant industry clusters across aerospace, pharmaceuticals and luxury goods. The country has a highly skilled workforce and world-class infrastructure, making it an attractive destination for foreign entrepreneurs.
Whether you are looking to open a company or expand your business in France, the country offers plenty of opportunities for entrepreneurs and small businesses.
However, setting up a business in France as a non-EU citizen can be challenging. Aside from the paperwork involved in setting up any business, foreigners also often need to register to pay taxes, open business bank accounts and follow various other administrative obligations.
The good news is that there are several international banks with branches in France that cater specifically to non-EU citizens and businesses. With the right bank, you can open a business account with ease. In this blog, we'll go through the steps you need to take as a non-EU citizen to open a business bank account in France.
French Banking System: An Overview
The banking system in France is highly regulated and well-developed, with a range of options for personal and business banking. The central bank in France is the Banque de France, which supervises and regulates the country's commercial banks.
Major French banks include BNP Paribas, Société Générale, HSBC and Crédit Agricole. These banks offer a wide range of services including savings accounts, checking accounts, credit cards, loans, and investment services.
For business banking, foreign companies can open a company account with a French bank and take advantage of services such as trade financing, foreign exchange, and cash management. As of 2023, France has 200+ banks that provide a wide range of services for individuals and businesses. The banking sector is highly competitive, offering various packages and deals to attract customers.
Additionally, the French government has introduced several initiatives to support digital banking, making it easier and more convenient for customers to manage their finances online. This has also led to the growth of fintech companies and the availability of alternative financial services in the country.
Overall, the banking system in France is well-equipped to meet the financial needs of both individuals and businesses. With a large network of branches, ATMs, and online services, banking in France is accessible (from anywhere around the world) and user-friendly.
İlayda Birol
Can you open a business bank account with a foreign passport?
As a foreign entrepreneur, you can open a business bank account in France. However, if you go the route of a more traditional bank the process might be much more complicated. It's important to note that foreigners planning to open a current account with one of the traditional banks are not eligible for one. Traditional banks require proof of residence to open a current account with them.
If you are from the EU, it’s possible to open an account with service providers like wamo, N26 or Wise. The process of opening an account at any of these financial institutions is much easier, more flexible and quicker. As you can see there are options when it comes to banking in France as a foreigner; you can either go through the traditional process with a French bank or look for online options that are more convenient and user-friendly.
In general, opening a business bank account in France is possible for foreigners, but it requires careful planning and a good understanding of the local banking regulations.
İlayda Birol
Types of bank account in France
In France, there are several types of bank accounts that you can open, depending on your personal or business needs. Some of the most common types of bank accounts in France are: Personal bank account: This is a standard account used for everyday transactions, such as managing your salary, paying bills, and withdrawing cash. Joint account: This type of account is intended for two or more individuals and can be used for shared expenses. Business bank account: This type of account is for companies and can be used for business transactions, such as paying suppliers and receiving payments from clients. Savings account: A savings account allows you to earn interest on your deposits and can be used for short- or long-term savings goals. Current account: A current account is a type of business account that is designed for companies that need to make frequent transactions. Student bank account: This type of account is for students and usually offers free or low-cost services, such as overdrafts and debit cards. Offshore business bank account: An offshore bank account is a type of account that is held in a foreign country and can be used for international business transactions.
Each type of account has different requirements and benefits, so it is important to research and compare the options to find the best fit for your personal or business needs.
Laine Redpath
Do you really need a business account in France? Here's what you should know
As an individual entrepreneur in France, it is not legally required to have a separate business bank account, but it is highly recommended. However, as per 2019 French law, if you are self-employed and your turnover has exceeded € 10,000 for two consecutive calendar years, then you are required to create an account dedicated to your company's financial activities.
Apart from this, having a separate business bank account offers many benefits. This includes easier separation of personal and business finances, a more professional image, and access to additional financial services. Having a business bank account can also help with complying with local regulations and managing finances more efficiently.
Additionally, running an international business means you will need to deal with multiple currencies at the same time. For example, you are in Canada and you wish to sell your products in France. This means that you will need to deal with the Canadian dollar (CAD) and the Euro (EUR). In order to do business in France, it is highly recommended that you have a business bank account in Euros. This way, all of your transactions will be made in Euros and there will be no need to worry about foreign exchange fees.
Laine Redpath
Banking options to open a business account in France
There are different options for opening a business bank account in France, including more traditional high street banks, online-only banks and financial management and payments platforms that use innovative technology. Below we’ll have a closer look at all of these options.:
Traditional brick-and-mortar banks
Traditional brick-and-mortar banks, also known as high street banks, are the most common type of bank in France. They offer a wide range of financial products and services for personal and business banking, including checking and savings accounts, loans, credit cards, and investment services.
One of the benefits of traditional banks is that they often have a physical presence in the form of branches, providing customers with in-person access to account managers, banking services, and support. They also usually have established reputations and a long history of serving customers, which can offer peace of mind. As humans we tend to like and trust what we know and what is familiar to us.
However, traditional banks often have higher fees and charges compared to other types of banks. Usually, traditional banks charge a maintenance fee between €2 and €5.00 per month to manage a basic current account and bank card. You’re also likely to be charged with additional fees for services like ATM withdrawals, checks, overdrafts, bank transfers, access to banking representatives, and other common financial services.
Fortunately, there is no heavy fee for non-residents planning to open a business account with them. However, even though this fee is not mentioned in a straightforward way, it will be displayed on your statement as a "commission de tenue de compte" or account maintenance fee.
Although there are benefits of going the traditional route, the application process is often more complex than expected and the approval of the account can take a long time.
Some well-known options for traditional banks in France are:
BNP Paribas: BNP Paribas is one of the largest banks in France, offering a wide range of financial products and services for personal and business banking. BNP Paribas has a strong reputation, established history, and a large network of branches throughout France, providing customers with in-person access to banking services.
Société Générale: France's third-largest bank, Société Générale is another bank, with a wide range of financial products and services for personal and business banking. While they might not be too geared towards dealing with non-residents, they have a strong reputation, established history, and a large network of branches throughout France.
Crédit Agricole: Crédit Agricole is a large French bank known for its strong presence in the country. It is also known as La banque verte (The green bank) for its historical ties to farming. It is not just France’s largest bank but the world’s biggest cooperative financial institution. They offer a wide range of financial products and services for personal and business banking and have a large network of branches throughout France.
Traditional banks are well suited to the following customers:
- Established businesses with a strong credit history
- Businesses that require all kinds of banking services like credit and debit cards, loans, overdrafts, investments etc. and are willing to pay higher fees
- People who have recently relocated to France and have (or soon will have) proof of residence
Online-only banks
Online-only banks, also known as digital banks or 'neobanks', are an increasingly popular option in France. They offer a wide range of financial products and services, including checking and savings accounts, loans, credit cards, and investment services, all through an online platform.
One of the benefits of online-only banks is that they often have lower fees and charges compared to traditional banks. They also have a more streamlined and efficient application process, with approval often granted much faster than with traditional banks.
Additionally, online-only banks offer a more convenient and accessible banking experience, as customers can manage their accounts 24/7 through a mobile app or website. This can be particularly appealing to customers who prefer to manage their finances digitally and avoid visiting a physical branch.
Let's take a look at some of the options available in France
N26: N26 is a German-based online-only bank that offers a range of financial products and services to customers in France, including checking and savings accounts, loans, and credit cards. N26 is known for its user-friendly mobile app and low fees, making it a popular choice among digital-savvy customers.
Revolut: Revolut is a UK-based fintech company that offers a range of financial products and services, including checking and savings accounts, loans, and credit cards. Revolut is known for its innovative features, including fee-free international money transfers and the ability to hold multiple currencies in one account.
Hello Bank: Hello Bank! is an online-only bank in France that offers a range of personal and business banking services. The bank was established as a subsidiary of BNP Paribas, one of France's largest banks.
Hello Bank! offers a range of features, including savings and checking accounts, credit cards, and loans. The bank also offers insurance products, including home insurance and car insurance.
One of the benefits of Hello Bank! is that the bank is fully digital, making it a convenient option for those who prefer to manage their finances online. The bank also offers a range of financial management tools, including budgeting and expense tracking, and has a mobile app for convenient banking on the go.
Online-only banks are a great option for the following customers:
- Those who want a specific and precise set of services like international transfers, current account, cards etc.
- Businesses with a focus on cost-saving and convenience
- Those who don't have a proof of residence and do not plan on getting one!
Financial management and payments platforms
Financial management and payments platforms are a relatively new type of bank that operates entirely online. These companies offer a range of financial products and services, including checking and savings accounts, loans, credit cards, and investment services. They often have lower fees than traditional banks and offer a more convenient, user-friendly digital experience for customers through the use of innovative technology.
One of the main benefits of these platforms is that they often have faster and more streamlined application processes compared to traditional banks. They also offer a wider range of financial products and services tailored to the needs of entrepreneurs, freelancers, and startups.
wamo: wamo is a financial management and payments platform that offers a mobile app for easy financial management in France. Alongside its virtual debit card, a multi-currency account and sub-accounts, wamo allows you to make international transfers and payments with ease.
The best part about wamo is that you can register in just a few minutes and the whole process is online – no branch visits are required! So, if you want to open a business account in France from your home country, you can do it right away and get your account up and running in 24 hours.
The signing up process with wamo is quite simple and straightforward. Download the wamo app from Apple store or Google Play or head to their website to get started. Once you are ready, the you’ll need to provide the following:
- Your name
- Address and country of residence
- Details of your shareholders and UBO where relevant
- Company details and one of the following documents:
- Memorandum and Articles of Association (M&A)
- Proof of company address
- Proof of shareholder structure
To get a sense of how wamo can be a great addition to your financial outlook, let's say you need to make a payment to a supplier based in Europe. With wamo, all you have to do is transfer the money from your home country account into your wamo account and then use the app to pay your supplier directly – it's that simple! Plus, you can hold all the major currencies in the same account that you trade in and assign sub-accounts to each of your vendors, regardless of their residence.
wamo offers a virtual debit card which can be used for online shopping or making payments wherever Mastercard is accepted. The best part? You can order up to 10 cards (or more) for different team members and manage them all from one centralised platform!
Financial management and payments platforms like wamo are best suited for the following customers:
- Those looking for speedy and personalised financial services
- Those who want to make international transfers in Euros from a foreign country with lowest-cost possible
- People who want to own a dedicated IBAN in Europe without showing proof of residence
- People who have recently relocated to France and small and mid-sized businesses who have been struggling to get a business account
The last thing you’ll do is choose your subscription plan. It’s important that you think about what plan will best suit your business. If you have a big team, for example, having free virtual and physical debit cards as and when you need them makes it worth opting for the higher monthly subscription amount, easily covering this cost every time.
Take a look at wamo’s subscription plans.
İlayda BirolRequired documents for opening a business account in France
What you need to open a business bank account in France will change depending on what kind of bank you choose to go with and the structure of your business. Typically you’ll need the following documents:
- Proof of identity and address: A valid passport or national ID card, and a recent utility bill or bank statement as proof of address.
- Business documentation: A copy of the company's registration certificate, articles of association, and any other relevant company documents.
- Proof of tax compliance: Proof of tax registration and VAT number.
- Proof of financial viability: A business plan, financial projections, and other financial information relevant to the business, such as past financial statements or tax returns.
- Signature authorisation: Authorised signatories list, specifying which individuals have the authority to sign on behalf of the company.
In this blog post we’ve looked at how a non-EU citizen can open a business bank account in France. While there are different options to consider, make sure to do your own research too. Check with each bank or financial institution about the exact documents you’ll need as these will differ. The requirements for opening a business bank account for a sole proprietorship, a limited company, or a branch of a foreign company may also vary.
