How to Set Up a Subsidiary in France as a Foreign Company: Step-by-Step Guide

What is a subsidiary in France, and how does it differ from a branch?

A subsidiary in France (filiale) is a separate French company owned by a foreign parent, while a branch (succursale) is an extension of the parent with no legal personality of its own. This distinction changes liability, taxation, and accounting duties. A subsidiary shields the foreign parent from French debts beyond its capital contribution. A branch exposes the parent directly, because the two share one legal identity.

The most common subsidiary form is the SAS (société par actions simplifiée), which represented 68% of new company registrations in France in 2023 (Insee, 2024). A subsidiary files its own corporate tax return in France, keeps French accounting records, and appoints a local director. A branch reports through the parent’s accounts but must still register with the French commercial court and file translated parent statements.

Keypoint advises foreign firms on this choice every week. For a group planning long-term operations, hiring staff, or signing local contracts, Keypoint usually recommends a subsidiary in France for the legal protection it offers. A branch can suit a short test phase or a single project. Keypoint reviews the parent’s goals, expected revenue, and tax position before recommending a structure. You can compare both options in detail on the Keypoint page dedicated to subsidiary or branch creation in France.

Which legal form should a foreign company choose in France?

Most foreign companies setting up in France choose the SAS for its flexibility, or the SARL for smaller, tightly held operations. Both limit shareholder liability to the capital invested. The choice affects governance, social charges on the director, and how easily new investors can join later.

The SAS has no minimum capital requirement beyond €1, and it lets shareholders write their own governance rules in the statutes. Its president is treated as an “assimilé salarié” for social security, which raises charges but grants better protection. The SARL suits family-owned groups and caps the number of partners at 100. A majority SARL manager pays lower social charges under the self-employed regime (TNS).

Keypoint helps foreign companies match the legal form to their plans in France, whether they expect fundraising, a single owner, or a management team. The team also drafts the statutes and shareholder agreements. Read more on Keypoint’s legal advice and assistance services.

What are the steps to register a subsidiary in France?

Registering a subsidiary in France follows seven steps, from drafting the statutes to receiving the SIREN number and Kbis extract. Since 1 January 2023, all formalities go through the online Guichet unique run by INPI, which replaced the former CFE network (INPI, 2023).

1. Draft the statutes defining the company name, purpose, capital, and management.
2. Deposit the share capital in a French bank or with a notary, which issues a certificate of deposit.
3. Appoint the director and gather identity documents, translated where needed.
4. Publish a legal notice in an authorised journal (journal d’annonces légales), costing around €150 to €200.
5. Register the beneficial owners with the commercial court registry.
6. File the application on the Guichet unique with the full document set.
7. Receive the SIREN, SIRET, and Kbis extract, which prove the subsidiary legally exists in France.

A common obstacle for foreign firms is opening a French bank account for the capital deposit, as banks often ask for a local director or address. Keypoint provides a registered office in France and coordinates with banks to unblock this stage. The firm also files the beneficial ownership register and the INPI application on the client’s behalf. Explore Keypoint’s registered office and administrative assistance services for the address and mail handling a new subsidiary needs.

How much does it cost to set up a subsidiary in France?

Setting up a subsidiary in France costs roughly €1,500 to €3,500 in the first year, covering registration fees, legal notice, and professional support, excluding share capital. The government registration fee for a commercial company is about €37 (INPI, 2024), but the real budget comes from legal drafting and advisory work.

The legal notice publication runs between €150 and €200 depending on the region and company form. Drafting the statutes, filing the INPI application, and setting up the beneficial ownership register typically cost €800 to €2,000 through an advisory firm. A registered office address in France adds €50 to €150 per month if the parent has no premises yet.

Keypoint gives foreign companies a fixed quote before starting, so there are no surprises. The firm groups registration, first accounting setup, and payroll onboarding into one package for France. Ongoing costs then depend on activity volume. Keypoint details its accounting and financial statements services for subsidiaries operating in France.

How long does it take to open a subsidiary in France?

Opening a subsidiary in France takes about 2 to 4 weeks once all documents are ready, with the INPI registration itself processed in a few business days. France ranked among the faster European countries for business start-up formalities in the World Bank’s Doing Business assessments before the series ended in 2020.

The timeline splits into two parts. Preparation, meaning statutes, capital deposit, and document collection, takes one to three weeks and depends mostly on how fast the bank opens the capital account. Once the file is complete, the INPI Guichet unique usually issues the SIREN within a few days, and the Kbis follows shortly after.

Delays for foreign companies almost always come from three points: the bank account for the capital deposit, translations of parent-company documents, and apostilles or legalisations on official papers. Keypoint anticipates these by preparing document checklists in advance and by offering a registered office in France, which removes the address blockage. The firm also coordinates certified translations. With this preparation, Keypoint routinely completes subsidiary registrations for clients across Europe, Asia, and North America within the shorter end of the range. For groups building a wider presence, Keypoint’s overview of doing business in France covers the wider setup context.

What tax and accounting obligations apply to a French subsidiary?

A French subsidiary must file annual accounts, pay corporate income tax at 25%, and comply with French VAT and payroll rules. The standard corporate tax rate in France is 25% since 2022, with a reduced 15% rate on the first €42,500 of profit for eligible small companies (Direction générale des Finances publiques, 2024).

Every French subsidiary keeps accounts under the Plan comptable général, files a corporate tax return, and submits annual financial statements to the commercial court. VAT registration is mandatory once the company trades, with the standard rate at 20%. Subsidiaries with employees run monthly payroll, file the DSN social declaration, and pay employer social contributions, which add roughly 40% to 45% on top of gross salaries.

Foreign parents also need to manage transfer pricing between the parent and the French subsidiary, which the tax authorities review closely. Keypoint handles corporate tax filings, VAT returns, and payroll for foreign-owned subsidiaries in France, and advises on cross-border flows through its international taxation expertise and payroll and HR consulting. This keeps the subsidiary compliant from its first month of activity.

Why work with an accounting and advisory firm for a French subsidiary?

Working with an accounting and advisory firm gives a foreign company one local partner for registration, accounting, tax, and payroll in France, which lowers the risk of costly compliance errors. Keypoint is an accounting and advisory firm in France focused on foreign companies, rated 5.0/5 across 5 verified client reviews.

Foreign directors often underestimate French administrative detail: the DSN payroll declaration, the beneficial ownership register, and strict filing deadlines each carry penalties if missed. A firm that speaks the parent’s language and knows both systems removes that friction. Keypoint’s partner David Jian, a chartered accountant and Canadian CPA, has led international operations across Asia, the Americas, and Europe, so the firm understands how a foreign group actually works.

Keypoint covers the full lifecycle of a subsidiary in France: choosing the structure, registering it, running the books, filing taxes, and managing staff. A single point of contact replaces the usual mix of a lawyer, an accountant, and a payroll bureau. The firm serves clients from the Netherlands, North America, and Asia, and communicates in English and French. For advisory beyond compliance, Keypoint offers consulting and support to help foreign groups plan their growth in France. External benchmarks such as the French government’s Welcome to France portal and Insee business data confirm France’s steady flow of foreign direct investment.

What our clients say

Keypoint holds a verified average rating of 5.0/5 based on 5 client reviews, including foreign companies that set up their structure in France with the firm.