The foreign natural person who wishes to exercise an activity can opt for the status of auto-entrepreneur or create a sole proprietorship or a company.
A foreign legal person wishing to set up in France can create a liaison office, a branch or a subsidiary.
If the company does a market study on French territory, it can open a representative or liaison office (research or supply of technical and price information, without commercial activity).
Registration in the Trade and Companies Register (RCS) is not compulsory. A declaration of existence can be requested from the Business Formalities Center (CFE) of the Chamber of Commerce and Industry, which is not required to comply with this request. The declaration entails the registration of the liaison office in the National Directory of Companies and Establishments, which gives rise to the issuance of the SIREN and SIRET identification numbers. If the liaison office is not registered with the RCS and if it wishes to employ employees, the declaration formalities and the payment of social contributions must be made to URSSAF Strasbourg (contact for employers without an establishment in France).
This structure is not subject to the authorization procedure for foreign investments in France, and is not considered a taxable entity.
The head of the representative or liaison office is generally an employee of the foreign company. Unless he is seconded to France by this company (and thus the social protection system of his country of origin remains applicable to him), he falls under the general French social security system. The formalities of registration, declaration and payment of contributions to the various funds are his responsibility.
- If the foreign company settles in France to carry out a commercial activity, it can opt for two types of establishments subject to registration with the RCS: The subsidiary is a company incorporated under French law, with legal personality, more than half of the capital of which is held by the parent company. It is subject to French regulations for the possible legal forms and their tax and social consequences, the commercial premises and the formalities (registration, etc.);
- The branch manages a business that is separate from the main establishment by its installation and its own material organization. It does not have legal personality and does not have financial autonomy. The “agency” is synonymous with “branch” (lighter physical structures or limited powers of its management).
- The foreign company which creates a branch or an agency must file two certified copies of its articles of association in French and proceed, within fifteen days to its registration and to the legal, administrative, fiscal and social formalities (in the event of hiring of employees). ) at the business formalities center. The branch manager is most often an employee of the foreign company (or an agent).
- Setting up in France, a branch or a foreign agency is exempt from prior declaration and authorization.
The subsidiary and the branch are subject to corporation tax. An agreement signed by France and the State of origin of the parent company can modify the tax system in order to avoid double taxation of profits.
Ddocuments to be provided:
The subsidiary is required to comply with all legal and regulatory requirements – bookkeeping and filing of annual accounts, presence of the auditor, etc. – within the scope of its activity.
For more info:
https://www.captaincontrat.com/articles-creation-entreprise/creation-filiale-etranger
https://www.captaincontrat.com/articles-creation-entreprise/definition-filiale-fonctionnement
