Introduction to setting up a French subsidiary
Establishing a subsidiary in France may be preferential to setting up a branch; local clients, suppliers, and government authorities are generally more inclined to do business with a company that is locally incorporated.
A subsidiary is regarded as a limited liability company and as a result it must have its own name – the parent company is advised to organise this before registration. The process of obtaining a name for the subsidiary is free of charge and can be fully completed online.
What are the main formalities of a French subsidiary?
- The minimum share capital required is €1
- The Memorandum & Articles of Association of the subsidiary
- The resolution of the parent company detailing its decision to form the subsidiary
- Certification of the subsidiary’s French bank account
The documents shown above must be filed with the local trade register in order for the subsidiary to be registered.
All required documents must be presented or translated into French by a sworn translator. Notary and apostille are required if the parent company’s domicile country is outside the Hague convention.
What are the accounting requirements of a French subsidiary?
The subsidiary must set up a French bank account in order to deposit the required share capital.
As a French resident company, the subsidiary must announce itself to the French Tax Authorities and comply with the national accounting standards.
All accounts must be kept in French. VAT returns can be submitted monthly or quarterly, depending on the subsidiary’s tax structure, and tax returns annually.
For further information on accountancy services and tax rates in France, please visit our partners Accountancy In Europe.
Subsidiary Formation Packages
We have a wealth of experience in European formation requirements and can use our expertise to fully support you throughout your formation process. Our subsidiary formation packages provide a range of services, including registering the subsidiary and setting up a bank account, managing every aspect of the incorporation on your behalf.
For further information on French subsidiaries please contact us or send an enquiry.