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Subsidiary Vs. Branch in FranceA presentation brought to you by
LawyersFrance.eu
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Open a Business in FranceFrance is the largest country in the
European Union and the third largest country in Europe.
The country has been at the heart of European history and it is
one of the top locations in Europe toopen a business.Ourlawyers in
Franceare ready to walk you through the steps required for starting
a business here.2
Structures for Foreign Companies in FranceForeign companies
seeking to have an established presence in France can choose
between subsidiaries and branch offices.
Setting up a subsidiary or a branch in France is also a great
way for foreign companies to expand their activity.3
The Branch Office in FranceA foreign branch is an extension of
the parent-company in another country.
It has no independent legal personality and reports directly to
the foreign company headquarters.
Because this type of company it does not have separate identity,
the laws and regulations that apply to the foreign company also
apply to it.4
Opening a Branch in FranceIn order to set up a branch of a
foreign company, the following documents must be submitted in
French (translated by an authorized translator when
necessary):application for registering a branch;copies of the
Certificate of Incorporation;Memorandum and Articles of Association
of the parent-company.
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The Subsidiary in FranceCompanies that want to establish a
permanent entity in another country may prefer to set up a
subsidiary.
Legally, 50% of a subsidiarys capital is owned by the
parent-company.
The legal entities under which a subsidiary may be established
are: the limited liability company, the single owner limited
liability company, the joint stock company and the general
partnership.6
Starting a Subsidiary in FranceFirst step that must be taken
when establishing a subsidiary in Franceis drafting the articles of
association.
Another requirement is checking the desired name in the French
Patent and Trademark Office.
A bank account must be opened and the minimum share capital must
be deposited (37,000 EUR in case of a joint stock company and any
amount for a limited liability company).
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Branch or Subsidiary in France?Although a branch is protected by
a powerful company, a subsidiary may find the advantage of certain
benefits when acting as a locally incorporated company.
A subsidiary may have certain tax benefits and it will pay all
applicable taxes.
One advantage for the branch deriving from its dependence upon
the foreign parent-company is that the latter is financially
responsible, if the branch encounters financial issues.8
Assistance in Opening a Company in FranceIf you need legal
advice or assistance for opening a branch or a subsidiary in
France, you maycontact ourFrench lawyers.
Our French law firm can also assist foreign investors seeking to
establish other types of companies.9
Thank you for your attention!For more information, please
contact us at:
(+44) 203-287 0408 (for international clients)
[email protected]
