Set Up a Subsidiary Company in France – A Complete Guide for International Businesses

France is one of Europe’s most dynamic economies, offering a thriving business environment, strong infrastructure, highly skilled talent, and access to the entire European Union. For foreign companies looking to expand into Europe, establishing a French subsidiary is one of the most strategic growth decisions. If you want to set up a subsidiary company in France, understanding the legal structure, compliance requirements, benefits, and step-by-step process is essential.

This guide explains everything you need to know, along with how Exportis can make the setup smooth, compliant, and stress-free.

Why Set Up a Subsidiary Company in France?

Setting up a subsidiary in France gives foreign businesses a strong foothold in the EU. The country comes with significant advantages:

1. Access to the European Single Market

A French subsidiary gives your company the freedom to trade across all EU nations without additional restrictions.

2. Strong, Stable Business Environment

France offers transparent regulations, high investor confidence, and a forward-thinking economic structure.

3. Attractive Tax Benefits

France provides tax incentives for innovation, R&D, technology, and startups.

4. Highly Skilled Workforce

France is known for its talent pool in engineering, technology, luxury goods, pharmaceuticals, and renewable energy.

5. Strategic Location

France acts as a gateway to Europe, Africa, and the Middle East, making it an excellent base for global expansion.

For companies looking to grow internationally, a French subsidiary opens doors to new opportunities and faster expansion.

What Is a Subsidiary Company in France?

A subsidiary is an independent legal entity in France, even though it is owned partly or wholly by a foreign parent company. The most common type of subsidiary in France is:

• SARL (Société à Responsabilité Limitée) – similar to a private limited company

• SAS (Société par Actions Simplifiée) – flexible company structure ideal for foreign investors

Most international companies choose the SAS structure due to its flexibility, ease of management, and investor-friendly regulations.

Steps to Set Up a Subsidiary Company in France

Establishing a subsidiary involves several legal and administrative steps. Here is a simplified guide:

1. Decide the Company Structure

The first step is choosing between SARL and SAS.

• SARL: structured, ideal for smaller operations

• SAS: flexible, scalable, perfect for foreign ownership

Most foreign businesses prefer SAS due to fewer restrictions.

2. Choose a Company Name

The name must be unique and compliant with French company laws.
A trademark search may also be required to avoid conflicts.

3. Prepare the Articles of Association

This document outlines:

• Business activities

• Shareholding structure

• Rights and responsibilities

• Decision-making methods

It must be drafted in French and signed by all shareholders.

4. Deposit Share Capital

French subsidiaries must have a minimum share capital deposited in a French bank account.
Once the bank verifies documents, it issues a capital deposit certificate, which is required for incorporation.

5. Provide a Registered Business Address

Every French company must have a local registered address.
Exportis can arrange legal address solutions for foreign businesses.

6. Gather Required Documents

Typical documents include:

• Parent company registration certificate

• Passport/ID of directors

• Proof of address

• Articles of association

• Bank deposit confirmation

All documents must be translated into French and notarized if necessary.

7. Register with the French Commercial Court

The next step is filing documents with the Centre de Formalités des Entreprises (CFE) or the competent commercial court.
Upon approval, the subsidiary receives:

• SIREN Number

• SIRET Number

• KBIS Extract (official business registration certificate)

This confirms the legal existence of your subsidiary in France.

8. Register for Taxes and Social Contributions

After incorporation, the subsidiary must register for:

• Corporate tax

• VAT

• Social security contributions

• Local taxes

This ensures full compliance with French law.

9. Set Up Accounting and Payroll

France has strict legal accounting standards.
Your subsidiary must maintain:

• Monthly payroll records

• Annual accounts

• Regular tax filings

Partnering with a French business development firm helps simplify these requirements.

Compliance Requirements for a Subsidiary in France

To operate legally, the subsidiary must comply with:

• French labor laws

• Data protection laws (GDPR)

• Commercial regulations

• Corporate tax requirements

• Social security obligations

• Employee contracts in French

• Proper bookkeeping and audits

Non-compliance can lead to fines or operational delays, which is why expert support is highly recommended.

Benefits of Establishing a Subsidiary Through Exportis

Setting up a subsidiary in France can be complex for foreign companies due to language, legal, and administrative challenges. Exportis simplifies the entire process with end-to-end support.

✔ Full Guidance in Incorporation

We manage documentation, translation, filing, and communication with French authorities.

✔ Assistance in Opening a Bank Account

We help foreign companies overcome banking challenges by coordinating with French financial institutions.

✔ Legal Address & Office Setup

Exportis provides registered business address services and office solutions.

✔ Compliance & Administrative Management

We ensure your company complies with French tax, accounting, and labor regulations.

✔ Hiring Support & Payroll Management

From recruitment to payroll operations, Exportis helps you build and manage your local team.

✔ Business Development & Market Entry Strategy

Beyond company formation, we support your growth with sales development, lead generation, and B2B expansion.

With Exportis, setting up a subsidiary in France becomes faster, safer, and more efficient.

How Exportis Helps You Expand Successfully

Exportis is dedicated to helping international businesses enter and succeed in the French and European markets. With years of experience, industry expertise, and a strong local network, we ensure:

• Seamless registration

• Fast setup

• Full compliance

• Local business support

• Market-ready strategies

We handle the complexities—so you can focus on growing your business.

Conclusion

If you are planning to set up a subsidiary company in France, now is the perfect time. With a thriving economy, access to the EU market, a rich talent pool, and a supportive business environment, France offers exceptional potential for international expansion.

Partner with Exportis to make your French expansion smooth, compliant, and successful. From incorporation to business development