Not only is it not just hearsay: In some European countries it's even enshrined in law. For example in Austria, the leader of a company ("gewerberechtlicher Geschäftsführer"), including sole traderships, partnerships, and legal entities, cannot be a person who, within the past X years (can't remember what X is) has been in bankruptcy in any country in the world. The authorities check the relevant Austrian register before giving you a business permit. For a person who has not lived in Austria for that stretch of time, you have to bring proof from the countries you've lived in, that you're not in bankruptcy there either. For some countries, this can be pretty hard to prove, as the relevant registers may simply not exist there. I remember it being a major bureaucratic hurdle when I moved from the U.K. to Austria (being an Austrian native) to start a business there.
Norway even has a special term for someone who has failed in entrepeneurship multiple times -- "bankruptcy jockey".
You won't be banned from starting a business from a single bankruptcy, but if it happens multiple times and/or creditors end up losing significant money over it, you can be barred from starting a business for two years.
I don't think these rules often directly prohibit a promising entrepeneur from starting a business, but it's pretty obvious that the whole culture provides a strong chilling effect.
I understand being banned from <<starting a new business>> after failing repeatedly. A bit extreme, but ok, it makes sense a bit. But he was saying he was banned from <<getting a bank account>> due to that.
It is extremely unlikely that you won't be able to get a simple checking/deposit account at a commercial bank just because you went bankrupt.
I think he is confusing "interdit bancaire" and bankruptcy. If you end up being put in the interdit bancaire file, yeah life pretty much sucks and most bank will refuse to do business with you. But having a company that go bankrupt doesn't mean you will be put in the file. You usually need to do things like stop paying your loan to be put on this file.
I likely am. The idea to try a startup in France was very short lived for me. Every card was stacked against me (many particuarly against me/my ideas, not everything is a reflection on society), so I moved on after just a few conversations.
Considering the insane amount of funds France will literally gift you just for opening a startup there, I find that very surprising. You have to be good at paper pushing and speak the language however. That much is true.
Yeah, my French is not what it should have been and I contracted an allergy to the French bureaucracy. Quite a bit of the whole thing is on me, no denying that.
A good friend is doing it now and it's not like he's swimming in cash though.
Yeah, to do any business in France, your really need to speak French. The French bureaucracy is not that bad (when you compare it to some of its neighbour) but in the same vein, it will be impossible to deal with it if you don't have a good grasp of French.
France cares a lot about French and its honestly an issue many time (and I say this as a French person). Things are changing slowly, but anybody serious about moving / opening a business in France should be serious about learning French. You would be astonished by the number of engineer, investor, and in general any business person, who have an awful level in any other language than French...
I'm fairly sure you have the right to a bank account under French law, but banks have the right to refuse you as a client.
This means that if you get rejected as a client by enough banks you can go to the Banque de France and they will select a bank that is then obligated to provide you with an account.
I don't get why they'd refuse you a checking account, even if you were the founder or one (or several bankrupt) companies. Would they be worried you wouldn't pay their crummy fees? :-)
Is this just hearsay? It seems extreme, even for French levels of bureaucracy.