Expand Business Area with Branch office in France
Let our France Partners Handle the Legal Stuff So You Can Focus on Building Your Dream
Open Branch Office in France
Opening a branch office in France provides a unique opportunity for businesses to tap into a highly skilled workforce and a strong consumer market, while benefiting from the country’s competitive tax system and favorable business environment. With its central location in Europe and well-developed infrastructure, France offers an ideal gateway for businesses looking to expand their reach beyond their domestic market.
🇫🇷 Why should I start the business in France?
France is located in the heart of Europe and has a highly developed economy, making it an attractive location for businesses looking to expand their reach in Europe. According to the World Bank, France is the 7th largest economy in the world, with a GDP of $2.7 trillion in 2021.
The country is also known for its high level of consumer spending, particularly in areas such as luxury goods, fashion, and food. According to Statista, France is the 3rd largest market in Europe for e-commerce, with a market value of €112 billion in 2020.
France offers a favorable business environment for foreign companies, with a competitive tax system, strong legal framework, and generous government incentives for investment.
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How can our French Partner help with opening a branch in France?
If you’re considering opening a branch office in France, don’t go it alone. At Lexidy France, we have a team of experienced lawyers who specialize in helping businesses navigate the legal and regulatory landscape of France. With their guidance, you can avoid costly mistakes and ensure compliance with local laws while staying focused on growing your business. Contact our French Partners today to learn how to get the best-tailored help to unlock the full potential of the French market and achieve your business goals. Let our French Partners be your trusted partner in this exciting journey.
- Our French Partner is compound of lawyers who have a deep understanding of the legal and business landscape in France, and who can provide you with the expert guidance you need to succeed.
- Lexidy France understands that every business is unique, as well as the personalized approach to every client required.
- Our clients trust they will be provided with reliable and effective legal guidance as Lexidy France have helped many businesses achieve their goals in the French market.
What is a branch office?
A branch office is a secondary establishment endowed with permanent representation and with a certain management autonomy, through which the parent company’s activities are fully or partially developed.
Why to set up a branch office?
A branch office is ideal because:
- It doesn’t have its own legal personality (it is the same legal entity as its foreign parent company), this means that the parent company has control over the branch. It is attached to the main company and depends on the head office.
- It does not require a minimum share capital for its constitution.
- The parent company will be responsible for the debts incurred by the branch
- This structure also makes it possible to test the new market by experimenting with the sales of products or services in the targeted territory, and to withdraw at any time if the experiment does not prove conclusive.
Differences between Branch vs Subsidiary formation
Legal personality:
- A branch is “an extension” of the parent company and doesn’t have its own legal personality.
- A subsidiary is a new company and has its own independent legal personality (it is subject to the rights and obligations it contracts, independently from the ones undertaken by its parent company).
Minimum share capital:
- A branch does not require a share capital or economic allocation at the time of its establishment.
- A subsidiary does require a share capital: the parent company owns more than 50% of the capital. (The amount of the company’s capital is set by the status of a company).
Establishment formalities and registration:
- Common formalities:
- Registration at the RCS (Trade and Companies Register) at the place of domiciliation.
- Translated status of the foreign company;
- Different formalities:
- For the establishment of a subsidiary it will be required a statement and a publication in a newspaper.
- Subsidiary: in the case of SAS (Simplified Joint Stock Company), it is mandatory to submit a publication announcement in a certified legal bulletin.
- Branch: It is not necessary to carry out a formality of publication of a legal announcement during the constitution of a branch
Requirements for setting up a branch office in France
- The scope of the activities that the branch may realize is the same as the one of the foreign entity: The branch may operate only in respect of the activities included in the corporate purpose of the foreign entity.
- It must be located abroad, with a distinct workforce in terms of employees or personnel.
- Does not have its own legal personality (it is the same legal entity as its foreign parent Company). → Branches do not have a legal personality independent from the parent company, meaning that the liabilities the branch enters, are obligatorily assumed by the foreign parent company with the legal limits set under their respective national law.
- It is managed by a representative of the parent company (manager) who has the power to deal with third parties.
Steps on opening a french branch office
- An incorporation file must be filed and presented to the clerk of the commercial court.
- Translate the foreign status.
- Registration at the RCS (Trade and Companies Register) at the place of domiciliation, within 15 days from its opening.
What Our Clients Are Saying
Don’t try to go through the Company Formation process on your own. Seek the help of an experienced corporate lawyer to increase your chances of success and make the process as smooth and stress-free as possible.
OUR FRENCH PARTNERS
Our French Partners is by qualified legal experts who have been trained in the field of corporate law. They work on these requests every day and it’s their passion. Lexidy France understands the provision of service is a way of life and what excites us the most is to be able to deliver the happiness and satisfaction of a successful process. We want to help you achieve your goals and dreams.
Eléonore Tavares de Pinho
Frequently Asked Questions
EU Nationals, Switzerland Nationals and Nationals from the European Economic area, graduates from French higher education.
→ a foreign creator can register a branch in France if he or she does not live in the French territory
→ If the creator wants to reside in France there are different resident permits that allow them to start a business such as the Entrepreneur residence permit or the Talent Entrepreneur residence permit.
The overall process takes between 1 to 2 months.
A branch does not require a minimum share capital or economic allocation at the time of its establishment.
In general, the attorney’s fees are around 1200 euros depending on the project. The other formalities linked to registration fees cost between 180 and 300 euros.
How Can Our French Partners help you?
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