Evaluation process used by French authorities to determine the economic viability of an entrepreneurial project is a crucial requirement for foreign nationals seeking an “entrepreneur/liberal profession” residence permit, as mandated by Article L. 421-5 of the Ceseda.
The evaluation is multifaceted, ensuring that only genuinely viable projects are approved.
Key Aspects of the Evaluation:
- Comprehensive Project Viability Assessment:
- The core principle is that the proposed business activity must demonstrate tangible economic viability. This goes beyond mere intent, requiring solid proof of the activity’s realism and its potential to generate sufficient resources.
- The administration relies on detailed guidelines, notably from the circular dated October 29, 2007, to conduct thorough verifications. These guidelines set the standard for what constitutes an acceptable level of economic soundness.
- A critical point emphasized is the necessity for prefects to provide well-substantiated reasons for any refusal. Decisions must be grounded in concrete factual evidence, avoiding vague or unsubstantiated justifications. This protects applicants from arbitrary decisions.
- Applicants are required to submit extensive documentation, with the Cerfa form n° 13473*01 being a cornerstone. However, a single projected balance sheet is insufficient. Authorities demand comprehensive information covering the project’s needs, components, and commercial strategy.
- The competitive landscape is also considered. Prefects may assess the viability of a new business by examining the existing market and the level of competition.
- Jurisprudence is frequently referenced, providing examples of projects that were deemed economically viable and those that were not, offering valuable insights into the practical application of these criteria.
- Proof of Remunerative Activity:
- Beyond mere viability, the activity must generate “sufficient means of subsistence.” This means the entrepreneur must be able to derive an adequate income from their business (French minimum wage can be a relevant threshold)
- The evaluation includes a rigorous review of the company’s financial capacity, based on fiscal and social documents, as well as certifications from accounting experts.
- It’s important to note that only income derived directly from the business is considered. The income of a spouse or any secondary income of the applicant is excluded.
- Again, legal precedent helps to clarify how the administrations make there evaluations.
- Alignment of Skills and Project:
- Although not a strict legal requirement, the administration places importance on the alignment between the applicant’s qualifications and professional experience and the proposed business activity.
- A lack of relevant experience in the sector can be a significant obstacle, as it raises doubts about the applicant’s ability to successfully manage the business.
- There is a possibility that a application can be denied, even if another administative body gives a positive answer.
- Case law has established that a mismatch between professional training and the economic project can hinder the issuance of a residence permit.
Essentially, the process aims to ensure that foreign entrepreneurs establishing businesses in France have the necessary skills, financial resources, and a solid business plan to succeed and contribute positively to the economy.
LexCase’s Assistance with French Entrepreneur Visa Applications:
LexCase, is specializing in business law and immigration law, is exceptionally well-equipped to assist foreign entrepreneurs in preparing their applications for the “entrepreneur/liberal profession” visa in France.
- Mastery of Legal and Regulatory Requirements:
- LexCase possesses in-depth knowledge of the provisions of the Ceseda and the implementing circulars related to this type of visa.
- The firm closely monitors jurisprudential developments, allowing it to continuously adapt its advisory strategy.
- Assistance in Compiling the Application File:
- LexCase assists entrepreneurs in gathering and organizing all the necessary supporting documents, including the Cerfa form, business plan, financial forecasts, and more.
- The firm ensures that the application file is complete, coherent, and compliant with the administration’s requirements.
- Evaluation of Project Viability:
- LexCase helps entrepreneurs develop a robust and realistic business plan, considering the specifics of the French market and the competitive environment. Please note that each applicant must hire his/her own accountant in France.
- LexCase assists in demonstrating the project’s financial capacity to generate sufficient income and ensure the business’s sustainability.
- Advice on the Alignment Between the Project and Skills:
- LexCase advises entrepreneurs on how to highlight their qualifications and professional experience to demonstrate alignment with the proposed project.
- The firm helps anticipate and respond to potential objections from the administration regarding the project’s suitability.
- Representation Before Administrative Authorities:
- LexCase can represent entrepreneurs before the prefectures and other relevant administrative bodies to facilitate the processing of their applications.
- In the case of a refusal, Lexcase is also able to defend the interests of their client by performing a recourse in the administrative tribunals concerned.
LexCase’s expertise enables foreign entrepreneurs to maximize their chances of obtaining the “entrepreneur/liberal profession” visa in France by providing them with personalized and rigorous support throughout the process. Please contact us for a first interview.
