Create an offshore company as a foreign student

[sarah233]

Hi,
As a foreign student in France, I can not own a company in the country. Meanwhile, I would like to create an e-commerce dropshipping business. Then, I turn to another posibility which is an Offshore company to run the business. The location where I want to create is in Seychelles, because it is the cheapest offer. Then, the question comes,

Is it possible for a foreign student in France to create an Offshore company?

Thank you.

 

[Sols]

AFAIK, the conditions of most student or education visas is you can't have any commercial activity in the host country. This usually means you can't undertake employment, or at least not full-time employment. Whether it applies to starting your own company and whether any such restrictions would apply differently to foreign or local companies is something you would have to investigate the specifics of French law to answer. You might be able to take up part-time employment and run your business under those conditions.

From a tax perspective, the Seychelles company becomes tax resident in France by being managed and controlled from France. This means the company and you have to pay taxes in France, at which point any restrictions under the conditions of your visa may come to light.

 

[sarah233]

AFAIK, the conditions of most student or education visas is you can't have any commercial activity in the host country. This usually means you can't undertake employment, or at least not full-time employment. Whether it applies to starting your own company and whether any such restrictions would apply differently to foreign or local companies is something you would have to investigate the specifics of French law to answer. You might be able to take up part-time employment and run your business under those conditions.

From a tax perspective, the Seychelles company becomes tax resident in France by being managed and controlled from France. This means the company and you have to pay taxes in France, at which point any restrictions under the conditions of your visa may come to light.

Thank you for your reply.

"From a tax perspective, the Seychelles company becomes tax resident in France by being managed and controlled from France. This means the company and you have to pay taxes in France, at which point any restrictions under the conditions of your visa may come to light."

I don't understand this rule. I don't mind if I need to pay tax in France, because initially I wanted to create a company in France but limited by my visa. From what you said, does it mean that the company that I will create (if possible) will act like a french company?

 

[aquarius]

Thank you for your reply.

"From a tax perspective, the Seychelles company becomes tax resident in France by being managed and controlled from France. This means the company and you have to pay taxes in France, at which point any restrictions under the conditions of your visa may come to light."

I don't understand this rule. I don't mind if I need to pay tax in France, because initially I wanted to create a company in France but limited by my visa. From what you said, does it mean that the company that I will create (if possible) will act like a french company?

Hi Sarah,

Generally a company is taxed where it is managed. There are exceptions but surely France is no exception on this rule. Since you will control and manage the company from France, you will need to report taxes to the French tax office. You will need to check is 'working from France' violates your visa conditions.

 

[sarah233]

Hi Sarah,

Generally a company is taxed where it is managed. There are exceptions but surely France is no exception on this rule. Since you will control and manage the company from France, you will need to report taxes to the French tax office. You will need to check is 'working from France' violates your visa conditions.

I see, I understand more what Sols have said about "full employment", yes my Visa clearly stated that I can take a part-time job. But, in my case not only I will manage the company, I will also create it, will be the director and the principal shareholder. Does it mean that I will pay employment and corporate tax in France? It seems like, my student visa won't allow me to do such things....

Please if anybody had the same experience ?

 

[VESTANON]

I see, I understand more what Sols have said about "full employment", yes my Visa clearly stated that I can take a part-time job. But, in my case not only I will manage the company, I will also create it, will be the director and the principal shareholder. Does it mean that I will pay employment and corporate tax in France? It seems like, my student visa won't allow me to do such things....

Please if anybody had the same experience ?

Student Visas, does have its merits and Limitations,So what type of business activity are you planning to setup and operate remotely?
Have you looked into LLC. A few options might suffice.