France is one of Europe’s most attractive destinations for international companies looking to expand their presence. With a strong economy, access to the European Union market, world-class infrastructure, and a skilled workforce, many foreign investors are choosing to set up a subsidiary company in France as part of their global growth strategy.
In this guide, we explore why France is an ideal business hub and outline the essential steps, benefits, and compliance requirements involved in establishing a subsidiary company.
Why Choose France for Business Expansion?
France is the world’s seventh-largest economy and a leading destination for foreign direct investment. It offers political stability, a sophisticated legal framework, and access to over 450 million consumers across the European Union.
Companies that set up a subsidiary company in France benefit from:
Strategic access to European and global markets
A highly educated and multilingual workforce
Strong government support for foreign investors
Advanced infrastructure and innovation ecosystems
Competitive tax incentives for eligible businesses
These advantages make France an ideal base for long-term international expansion.
What Is a Subsidiary Company?
A subsidiary company is a legally independent entity controlled by a parent company, usually through majority shareholding. Unlike branch offices, subsidiaries operate under French law and have their own legal identity.
When businesses set up a subsidiary company in France, they gain operational autonomy while maintaining strategic control through the parent company. This structure offers better credibility, reduced risk exposure, and stronger market positioning.
Common Legal Structures for Subsidiaries in France
Before proceeding, it is important to choose the right legal form. The most commonly used structures include:
1. Société à Responsabilité Limitée (SARL)
Suitable for small to medium-sized businesses
Limited liability for shareholders
Minimum of one shareholder
2. Société par Actions Simplifiée (SAS)
Highly flexible corporate structure
Preferred by international investors
Allows customized governance rules
3. Société Anonyme (SA)
Ideal for large enterprises
Requires higher capital and formal governance
Exportis assists businesses in selecting the most suitable structure when they set up a subsidiary company in France, ensuring compliance and strategic alignment.
Step-by-Step Process to Set Up a Subsidiary Company in France
1. Define Business Objectives
Identify your expansion goals, target market, and operational scope. This helps determine the appropriate legal structure and investment scale.
2. Choose the Legal Form
Select the most suitable corporate structure based on business size, liability preferences, and governance needs.
3. Register the Company Name
Verify and reserve the company name with French authorities to avoid duplication.
4. Prepare Legal Documentation
Draft Articles of Association, appoint directors, and define shareholder agreements in compliance with French law.
5. Open a Corporate Bank Account
Deposit the required share capital into a French bank account.
6. Register with Authorities
Complete registration with the French Commercial Court and obtain company identification numbers.
7. Tax and Social Security Registration
Register for corporate tax, VAT (if applicable), and social security contributions.
Exportis provides end-to-end support throughout this process, helping businesses efficiently set up a subsidiary company in France without unnecessary delays.
Legal and Tax Compliance Requirements
France has a transparent but structured regulatory environment. Companies must comply with:
Corporate income tax regulations
VAT and payroll tax obligations
Annual financial reporting
Employment and labor laws
Working with experienced advisors like Exportis ensures ongoing compliance and risk management after you set up a subsidiary company in France.
Benefits of Setting Up a Subsidiary in France
Establishing a subsidiary offers several long-term advantages:
Limited liability protection for the parent company
Strong local market credibility
Easier access to EU funding and incentives
Improved customer and partner trust
Long-term operational stability
These benefits make subsidiaries the preferred choice for companies planning sustained European operations.
Why Choose Exportis?
Exportis specializes in helping international businesses expand into France with confidence. From legal structuring and documentation to tax advisory and post-incorporation compliance, Exportis offers a seamless and strategic approach.
With in-depth knowledge of French corporate law and cross-border business regulations, Exportis simplifies the process to set up a subsidiary company in France, allowing businesses to focus on growth rather than administrative complexity.
Conclusion
France remains one of the most promising destinations for global business expansion. Establishing a subsidiary provides the legal security, operational flexibility, and market credibility needed for long-term success. By partnering with experienced advisors like Exportis, businesses can smoothly set up a subsidiary company in France and unlock new growth opportunities across Europe.
