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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 came in 16 and 18 years, you must be emancipated minor. You must not have been doomed for certain offenses (bankruptcy, fraud, theft, etc.). If you already operate in parallel some businesses are prohibited. The conditions are the same if you come from France or a country European (EU, EEE or Switzerland). Aid is planned for foreigner entrepreneurs.

French

We're talking about commercial capacity to define the right or not to be a trader, that is to say to perform acts of commerce.

Examples include selling, buying, contracting and signing contracts or writing invoices.

Warning  

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 a non-emancipated minor, you cannot become a trader. We'll explain the conditions for to request emancipation.

There is a exception : the middle finger under guardianship or curatorship He's not allowed to be a merchant.

If you are already doing business elsewhere, the cumulation with some shops can be forbidden.

In the public sector

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

However, a derogation may be obtained under certain conditions.

In the private sector
General case

You can to combine several activities in the private sector with the profession of merchant.

You must check in your employment contract there is no objection to this.

This is a statement called "non-compete clause".

Exceptions

You don't have the right to become a merchant, if you practice in parallel one of the trades following:

  • Ministerial Public Officer. For example: Registrar, Commissioner of Justice (former bailiff and judicial auctioneer), notary.
  • Lawyer, court administrator and judicial representative (liquidator)
  • External auditor and chartered accountant
  • Architect

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

  • Prohibition from practicing for personal bankruptcy
  • Prohibition of manage a company
Prohibition of managing a company

This prohibition is pronounced by a judge following a infringement.

The most common offenses that give rise to these offenses are:

  • Crime, theft, extortion, fraud, laundering, embezzlement, concealment, forgery and use of forgery, corruption, etc.
  • Tax fraud (tax fraud) VAT: titleContent, on stamp duty, the land advertisement tax, on the CA: titleContent, etc.)
  • Hidden labor
  • Business and commercial offenses (e.g. bankruptcy offenses, the fraudulent management of a company during a cessation of payments)

Example :

Abuse of social assets, 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 the Last 15 years.

Warning  

following a ban on managing or personal bankruptcy, you are registered in the FNIG: titleContent and that prohibition is referred to in SCR: titleContent.

Sanctions

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

If you are prohibited from managing a company, if you do not comply with it, you risk €30,000 fine and 2 years in prison.

European (EU or EEA)

If you come from an Eastern European countryEU: titleContent, of theEEE: titleContent or from Switzerland, you can become a merchant in France. The same conditions apply to you as to a person of French nationality.

We're talking about commercial capacity to define the right or not to be a trader, that is to say to perform acts of commerce.

Examples include selling, buying, contracting and signing contracts or writing invoices.

Warning  

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

If you are already doing business elsewhere, the cumulation with some shops can be forbidden.

In the public sector

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

However, a derogation may be obtained under certain conditions.

In the private sector
General case

You can to combine several activities in the private sector with the profession of merchant.

You must check in your employment contract there is no objection to this.

This is a statement called "non-compete clause".

Exceptions

You don't have the right to become a merchant, if you practice in parallel one of the trades following:

  • Ministerial Public Officer. For example: Registrar, Commissioner of Justice (former bailiff and judicial auctioneer), notary.
  • Lawyer, court administrator and judicial representative (liquidator)
  • External auditor and chartered accountant
  • Architect

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

  • Prohibition from practicing for personal bankruptcy
  • Prohibition of manage a company
Prohibition of managing a company

This prohibition is pronounced by a judge following a infringement.

The most common offenses that give rise to these offenses are:

  • Crime, theft, extortion, fraud, laundering, embezzlement, concealment, forgery and use of forgery, corruption, etc.
  • Tax fraud (tax fraud) VAT: titleContent, on stamp duty, the land advertisement tax, on the CA: titleContent, etc.)
  • Hidden labor
  • Business and commercial offenses (e.g. bankruptcy offenses, the fraudulent management of a company during a cessation of payments)

Example :

Abuse of social assets, 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 the Last 15 years.

Warning  

following a ban on managing or personal bankruptcy, you are registered in the FNIG: titleContent and that prohibition is referred to in SCR: titleContent and the RNE: titleContent.

Sanctions

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

If you are prohibited from managing a company, if you do not comply with it, you risk €30,000 fine and 2 years in prison.

Foreigner

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

The 1re the process consists of choosing, 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 suits you depending on your situation as an entrepreneur.

The site Welcome to France proposes a personalized route depending on the country you come from to prepare your installation.

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

We'll get you explains the conditions for obtaining according to your profession.

If you meet the conditions for obtaining it, your installation will be facilitated.

It allows you to work in France for 4 years. It shall be renewable.

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