Its Doing Business 2013 report shows that France has slipped from 32nd position to 34th, putting it behind the UK, Germany and other European nations.
Top of the chart was Singapore, with Hong Kong and New Zealand making up the top three and the report stressed that a clear and consistent tax and regulatory regime can help economic growth but rejected the idea that massive deregulation was the way forward.
"The economies that rank highest on the ease of doing business are not those where there is no regulation – but those where governments have managed to create rules that facilitate interactions in the marketplace without needlessly hindering the development of the private sector," it said.
"In essence, it is about smart business regulations, not necessarily fewer regulations."
In recent weeks the French government has had to back down from changes to the tax regime on entrepreneurs, as well as dampen fears about the auto-entrepreneur scheme.
And with a complex system of bureaucracy and costs for French businesses to face when launching new products, opening premises or taking on extra staff, the Doing Business 2013 report suggests it is these areas that should be tackled first.