Setting up in France when you have created your company abroad is possible. The key is knowing how to start.
When a foreign company wants to set up in France, it can decide, before establishing a subsidiary, to start by setting up a branch or a liaison office. Whatever the decision, the establishment must follow certain formalities in order to be legal.
Whether the implementation is temporary or permanent, the foreign company has a legal obligation to declare a registered office in France. The procedures can be lengthy, complicated, and risky when it comes to acquiring property or signing a commercial lease. These steps are not necessarily the most sensible if the company's goal is simply to test the French market, especially if there are no plans to hire employees in France initially.
After this domiciliation step, the foreign company must register with the Business Formalities Centre and the Trade and Companies Register.
Now, let's take a look at the different ways to establish a presence in France by examining what branches and liaison offices are.
Definition of branch: Legally speaking, a branch is an establishment that belongs to a group. It's generally subject to the same obligations as French companies. The branch doesn't have its own legal personality or assets, but it does have some management and operational autonomy. It's legally allowed to trade with third parties, but its activities are directly linked to the parent company. Its results, profits, or losses are therefore taxed in the name of the parent company. It's exempt from filing annual accounts and appointing auditors. Unlike a subsidiary, which is very autonomous, the branch has a more flexible and less restrictive structure. It's an effective way to expand the original company's market abroad without too much commitment.
Definition of liaison office: The liaison office is the least binding solution for a company wishing to study the market in France. Indeed, it's not authorized to carry out any commercial activity. However, it can start other types of activities such as market research, prospecting, or developing its network of contacts. It can then change its status at a later date if it wishes. As a liaison office, its registration with the RCS is not compulsory in itself, but is strongly recommended as it allows to obtain a Kbis which is very useful in relations with third parties, such as banks or suppliers.
A liaison office is a great solution to start with because its structure allows the company to get a concrete idea of a potential future operation in the country while remaining very limited in terms of commercial activity.
When a foreign company establishes a branch or subsidiary in France, it has no choice but to register with the Register of Companies and Establishments by requesting a creation file from the Business Formalities Centre (CFE) that it depends on. This is generally at the Chamber of Commerce in the departmental capital. Depending on its activity, it will have to follow the formalities of business creation, like any French company, by choosing the status that suits it best.
As explained previously, if the possibility of creating a subsidiary seems too binding, the foreign company may decide to start in a lighter way by creating a branch or a liaison office. While these alternatives may seem more convenient, they are no less delicate because certain steps still need to be taken.
After finding a registered office address and registering with the CFE, the establishment must register with the Trade and Companies Register (RCS), with the URSSAF if there are employees in France and register with the tax authorities if there are none.
Setting up in France can be very expensive. Buying real estate can be very complicated and risky if you are not sure you will stay in France. Renting can also be expensive and full of administrative complications. Domiciling your company via an online domiciliation company is a good solution to these problems. A monthly subscription with a domiciliation company is a much faster and more economical option if you prefer to take the time to find premises or keep your main residence abroad. The procedures are really simple and can be done in just a few minutes.
Domiciliation with an online company also has many other advantages. First of all, it is an easy and very non-binding solution, but it also has the capacity to offer you services that will make your daily life easier. Indeed, SeDomicilier.fr offers you additional services such as managing your telephone switchboard, processing, digitizing and forwarding your mail, and even renting you premises or meeting rooms. All this in addition to offering you a prestigious French address which can only be beneficial for the start of your new commercial activities in a new country.
Estimated cost - €25
Register with the Trade and Companies Register and request a creation file from the CFE (Business Formalities Centre)
Follow the creation formalities like any French company (subsidiary, branch or liaison office)
Register with the Trade and Companies Register, with the URSSAF if there are employees in France and register with the tax authorities if there are none
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