The Immigration Act of 26 January 2024 clarified an important point for non-EU nationals wishing to operate as sole traders in France. Article L. 526-22 of the French Commercial Code provides that the status of entrepreneur individuel is not available to third-country nationals who do not hold a residence document authorising them to carry out that type of activity.
In practical terms, holding a French residence permit does not always mean that the person is free to become self-employed. The professional rights attached to the particular permit must be checked.
Which residence permits commonly allow entrepreneurial activity?
Depending on the precise wording and legal basis, this can include:
- resident cards, which generally provide broad access to professional activity;
- private-and-family-life residence permits, which generally allow both salaried and self-employed activity;
- job-search/business-creation status, within the activities authorised by that status;
- entrepreneur/profession libérale permits;
- Talent business-creation or investment categories.
What about an employee residence permit?
An employee residence permit is primarily linked to salaried employment. A holder who wants to move into self-employment or operate as a sole trader may therefore need a change of status before beginning that activity.
Starting a business first and only later checking whether the residence permit authorises it can create both immigration and commercial difficulties.
Practical advice
Before registering a sole-trader or self-employed activity, verify:
- the exact wording of the residence permit;
- whether it authorises self-employed activity;
- whether a change of status is required;
- whether the proposed business satisfies the economic and professional conditions of the new residence route.
Fazolo Avocats assists entrepreneurs and employees with changes of status and business-immigration applications in France.
