Foreign groups expanding to France usually want the same thing: one English-speaking firm that can register the company, keep the books, sign the audit, run payroll, file tax and answer legal questions, without anyone getting lost in translation. This guide walks through how to choose that firm, and the decisions that come with a French setup.
Which firm should you choose to expand into France?
Mid-sized groups often gain more from an independent firm than from a Big Four engagement. The trap is fragmentation: they hire a lawyer to incorporate the company, a separate accountant for the books, a payroll bureau for salaries and a tax adviser for the returns. Four contracts, four logins, four people who each see one quarter of the picture.
A consolidated approach removes that coordination friction and produces unified reporting: the same team that sets up the company also closes the year and answers the auditor.
How do you set up a French entity, and who handles it?
Incorporation runs through the Guichet unique portal, managed by INPI, and involves drafting the statutes, depositing share capital, publishing a legal notice and registering with the commercial registry.
The order matters. A good firm assesses your three-year strategy before filing the documents, not the reverse: the structure you register should fit where the business is going, not just where it starts.
SAS, SARL or branch: which structure fits a foreign group?
| Criterion | Branch | SAS | SARL |
|---|---|---|---|
| Separate legal entity | No | Yes | Yes |
| Parent liability | Full | Limited to capital | Limited to capital |
| Minimum capital | None | None (1 euro possible) | None (1 euro possible) |
| Governance flexibility | N/A | High | More rigid |
| Typical fit | Market testing | Most foreign investors | Small owner-run setup |
Most foreign investors land on the SAS: flexible governance, limited liability, and a president that can be a foreign company.
Can you hire in France before the entity exists?
Yes. A foreign employer can register through Urssaf’s simplified scheme and run compliant French payroll without incorporating first. But French employer obligations apply immediately on the first hire.
Employer social contributions typically run between 25% and 45% on top of gross salary, depending on the pay level and the reductions that apply.
When does a French subsidiary need a statutory auditor?
A statutory auditor (commissaire aux comptes) becomes mandatory once the company exceeds two of three thresholds at year-end. The catch for foreign groups is that a subsidiary controlled by a group is treated as a significant subsidiary, with lower triggers.
| Company | Two of three thresholds |
|---|---|
| Standalone company | 5M euros balance sheet · 10M euros turnover · 50 employees |
| Group subsidiary | 2.5M euros balance sheet · 5M euros turnover · 25 employees |
So a French entity that would be exempt on its own can still be pulled into the requirement by its parent.
Corporate tax, VAT and the CIR: what you will actually pay
- Corporate income tax: 25% standard rate.
- Reduced SME rate: 15% on the first 42,500 euros of profit, but only if the company is held at least 75% by individuals. A subsidiary wholly owned by a foreign parent usually fails that test and pays 25% from the first euro.
- VAT: 20% standard, with reduced rates of 10%, 5.5% and 2.1% depending on the activity.
- R&D tax credit (CIR): 30% of eligible R&D spending up to 100 million euros a year, then 5% above. The 2025 Finance Law cut the operating-cost lump sum to 40% of qualifying staff costs and lowered the innovation credit (CII) to 20%.
About Keypoint International
Keypoint International (formerly VM International, founded in 2003) is an independent firm specialising in foreign groups operating in France. Several partners come from Big Four backgrounds (Deloitte, PwC), the team carries dual France and Canada qualifications along with US GAAP and CIR experience, and the firm is a member of the Ordre des Experts-Comptables and registered with the CNCC.
Independent firm or Big Four: which is better for a mid-sized foreign group?
| Criterion | Independent one-stop-shop | Big Four |
|---|---|---|
| Single English-speaking contact | Included | Partial |
| Setup, accounting, audit, payroll, tax, legal | Included | Partial |
| Partner-level access | Included | Rare for small files |
| Cost predictability for SMEs | Strong | Higher cost |
| CIR and US GAAP support | Included | Included |
The independent model wins on one contract, one English-speaking team across every function, partner-level access, and pricing built for mid-sized clients. The Big Four keep the edge on deep specialist benches and global capacity for very large engagements.
Who this page is for
CFOs, founders and General Counsel of foreign groups making their first France-entry decision, who want one accountable partner rather than a folder of contractors.
France facts at a glance
| Item | Value (2026) |
|---|---|
| Standard corporate income tax | 25% |
| Reduced rate (qualifying SMEs) | 15% on first 42,500 euros |
| Standard VAT | 20% |
| R&D tax credit (CIR) | 30% up to 100M euros, 5% above |
| Audit threshold (standalone) | 2 of 3: 5M balance / 10M turnover / 50 staff |
| Audit threshold (group subsidiary) | 2 of 3: 2.5M balance / 5M turnover / 25 staff |
