Establishing a branch in France

Establishing a branch in France ? Or a subsidiary ? 

France is highly sought after as a location from which to develop a business presence on the continent of Europe. Its geographical location is ideal and recent adjustments to tax legislation have also made it an attractive base in economic terms. For example, the corporate taxation rate has fallen gradually since 2018 from 33.33% to 25% on 1 January 2022.

Establishing a branch in France ? Or a subsidiary ?

How to make you choice ?

When expanding abroad, the first question to ask clearly concerns the best legal structure and whether to opt for a branch or subsidiary. What are the differences between the two?

A branch is a permanent secondary establishment but is not a separate legal entity from the foreign parent company.  Accordingly, the assets are not separate and the parent company is fully liable for the branch financially.

From a tax perspective, the branch is subject to corporation tax in France on the income recorded in its own books. 

In contrast, a subsidiary is a company under French law and is legally separate from its foreign parent company; it has its own assets and is fully responsible for its affairs. 

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Establishing a branch in France ? Or a subsidiary ? 

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legal structure


reporting obligations

tax alternatives

Establishing a branch in France<br />

The choice of legal structure 

A number of criteria require consideration when determining the most appropriate legal structure for your French presence: the number of partners required and their respective liability (unlimited or limited by contributions); the minimum level of share capital; the management and governance of the company; the employment status of the management; etc. To help you choose the right structure, have a look at our guide on setting up business in France, where we examine the two main structures available to business in France: LINK

Subsequently, we can handle your reporting obligations in France.

Roche & Cie can help you set up your company in France. We can advise on the choice of legal structure, and any employment and tax alternatives, etc.

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