Doing business in France: where to start?
by Matthieu Van Gucht
Are you thinking of offering your products or services in France? The French market presents many opportunities, but a strategic and well-planned approach is essential. A clear and structured business plan will help you succeed. In this article, we explore the different ways to enter the French market, the legal and tax aspects to consider, and which structure best suits your growth strategy.
How can you enter the French market?
There are several ways for foreign companies to operate in France. Each model comes with its own characteristics, advantages, and key considerations:
Posting employees to France (secondment)
You send an employee from Belgium to carry out specific tasks in France. You’ll need to:
Apply for an A1 certificate
Register the employee via the French Sipsi portal
Employing staff as a foreign employer
You can hire French employees directly as a registrered foreign employer. However, depending on the type and duration of your activities, this could lead to a permanent establishment, requiring you to set up of a branch or French company.
Setting up a branch office (succursale)
A branch has no separate legal entity and is considered an extension of the Belgian company. Still, you must:
Maintain a separate set of accounts in France and allocate profits correctly;
File a tax return in France.
Setting up a subsidiary (filiale)
A subsidiary or 'filiale' is a fully independent French legal entity, with its own accounting and a local bank account.
Branch or subsidiary?
When developing commercial activities in France, many businesses choose between a branch and a subsidiary. The right choice depends on your growth ambitions and long-term vision.
| Structure | Advantages | Disadvantages |
|---|---|---|
Branch (succursale) | Quick incorporation, no separate bank account needed (only a French address) | More complex administration and strong ties to the foreign company |
Subsidiary (filiale) | Stronger commercial image and better perception among French employees. | Administratively heavier, requires registration with the French registry, articles of association and a French bank account |
Do you aim for a permanent presence or a limited scope of activity in France? A branch is often created to comply with specific tax obligations, while a subsidiary reflects a well-considered strategic decision. However, each case is unique. At Vandelanotte, we help you choose the most suitable option based on your business plans.
Key considerations for setting up in France
Launching successfully in France involves more than just choosing the right legal structure. Keep in mind:
In-depth market research: study your sector and local competition.
French labour law: respect French regulations, including a 35-hour workweek.
Legal complexities: French law can be intricate – make sure to be well-informed.
Structuring: plan carefully to avoid unnecessary costs
Patience: processes in France can take time – patience is key!
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Matthieu Van Gucht
Team Manager Accountancy matthieu.vangucht@vandelanotte.fr
Disclaimer
In our opinions, we rely on current legislation, interpretations and legal doctrine. This does not prevent the administration from disputing them or from changing existing interpretations.
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