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Who can become a merchant?

Verified 01 January 2023 - Directorate for Legal and Administrative Information (Prime Minister)

Want to become a merchant? You must be major. If you 16 and 18 years, you must be emancipated minor. You must not have been convicted for certain offences (bankruptcy, fraud, theft, etc.). If you are already doing business in parallel, some businesses are prohibited. The conditions are the same if you are from France or a country European (EU, EEA or Switzerland). Aid is provided for foreigners.

French

We talk about commercial capacity to define the right or not to be a trader, that is, to perform acts of trade.

This includes selling, buying, entering into and signing contracts or writing invoices.

Warning  

in order to have commercial capacity, you must meet the age requirements and not be subject to incompatibilities and prohibitions.

You must be in one of the following situations:

  • Have more than 18 years
  • Be emancipated minor

FYI  

if you are an unemancipated minor, you cannot become a merchant. We explain the conditions for request emancipation.

There is exception :: guardianship or guardianship major has no right to be a merchant.

If you already have an activity elsewhere, the cumulation with some shops may be forbidden.

In the public sector

In general, it is forbidden of accumulate an activity in the public sector with the profession of merchant.

However, derogation may be obtained under certain conditions.

In the private sector
General case

You can accumulate several activities in the private sector with the profession of trader.

You must check in employment contract no statement to the contrary.

This is a term called "non-competition clause".

Exceptions

You don't have the right to become a trader, if you exercise parallel one of business following:

  • Ministerial Public Officer. For example: Clerk, Commissioner of Justice (former judicial officer and judicial auctioneer), notary.
  • Lawyer, Judiciary and judicial officer (liquidator)
  • External Auditor and accountant
  • Architect

It is forbidden to be a merchant if you have been convicted one of the 2 following:

  • Prohibition on exercising personal bankruptcy
  • Prohibition manage company
Company management ban

This prohibition is pronounced by a judge following a offence.

The most common offences that are the cause of the offence are:

  • Crime, theft, extortion, fraud, money laundering, embezzlement, concealment, forgery and use of forgery, corruption, etc.
  • Tax fraud (fraud) VAT: titleContent, stamp duty, property advertising tax, on AC: titleContent, etc.)
  • Hidden work
  • Business and commercial offences (e.g. bankruptcy offence, i.e. fraudulent management of a company during a termination of payments)

Example :

Abuse of social property, presentation of unfaithful accounts, failure to draw up annual accounts

Personal Bankruptcy

It is forbidden to be a merchant if you have undergone a personal bankruptcy in Last 15 years.

Warning  

following a prohibition against management or personal bankruptcy, you are registered FNIG: titleContent and this prohibition referred to RCS: titleContent.

Sanctions

In case of personal bankruptcy, if you do not comply with the prohibition, you risk €375,000 fine and 2 years in prison.

If you are not allowed to manage a company, you risk €30,000 fine and 2 years in prison.

European (EU or EEA)

If you come from a country ofEU: titleContent,EEA: titleContent or from Switzerland, you can become a merchant in France. The same conditions apply to you as for a person of French nationality.

We talk about commercial capacity to define the right or not to be a trader, that is, to perform acts of trade.

This includes selling, buying, entering into and signing contracts or writing invoices.

Warning  

in order to have commercial capacity, you must meet the age requirements and not be subject to incompatibilities and prohibitions.

If you already have an activity elsewhere, the cumulation with some shops may be forbidden.

In the public sector

In general, it is forbidden of accumulate an activity in the public sector with the profession of merchant.

However, derogation may be obtained under certain conditions.

In the private sector
General case

You can accumulate several activities in the private sector with the profession of trader.

You must check in employment contract no statement to the contrary.

This is a term called "non-competition clause".

Exceptions

You don't have the right to become a trader, if you exercise parallel one of business following:

  • Ministerial Public Officer. For example: Clerk, Commissioner of Justice (former judicial officer and judicial auctioneer), notary.
  • Lawyer, Judiciary and judicial officer (liquidator)
  • External Auditor and accountant
  • Architect

It is forbidden to be a merchant if you have been convicted one of the 2 following:

  • Prohibition on exercising personal bankruptcy
  • Prohibition manage company
Company management ban

This prohibition is pronounced by a judge following a offence.

The most common offences that are the cause of the offence are:

  • Crime, theft, extortion, fraud, money laundering, embezzlement, concealment, forgery and use of forgery, corruption, etc.
  • Tax fraud (fraud) VAT: titleContent, stamp duty, property advertising tax, on AC: titleContent, etc.)
  • Hidden work
  • Business and commercial offences (e.g. bankruptcy offence, i.e. fraudulent management of a company during a termination of payments)

Example :

Abuse of social property, presentation of unfaithful accounts, failure to draw up annual accounts

Personal Bankruptcy

It is forbidden to be a merchant if you have undergone a personal bankruptcy in Last 15 years.

Warning  

following a prohibition against management or personal bankruptcy, you are registered FNIG: titleContent and this prohibition referred to RCS: titleContent and RNE: titleContent.

Sanctions

In case of personal bankruptcy, if you do not comply with the prohibition, you risk €375,000 fine and 2 years in prison.

If you are not allowed to manage a company, you risk €30,000 fine and 2 years in prison.

Foreigner

If you are from a country other thanEU: titleContent, theEEA: titleContent or Switzerland, you must apply for and obtain permission to stay in France.

1re process is to choose, then apply for and obtain a residence permit in France.

Welcome to France

The website Welcome to France also helps you choose the residence permit that corresponds to you depending on your entrepreneurial situation.

The site Welcome to France offers custom route depending on the country you are from to prepare your installation.

If you come to France to create a company (a start-up for example), you can Talent passport.

You explain the conditions of obtaining according to your profession.

If you meet the conditions to obtain it, your installation will be facilitated.

It allows you to work in France during 4 years. It is renewable.

Who can help me?

Find who can answer your questions in your region

To small and medium-sized and micro-entreprises, do you have a business project, a difficulty or a question ?

Quick and simple public service: you will be contacted over the phone by one of our experts.

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