Which type of business structure should you choose in France?
What immigration status should the manager have?
Setting up a business in France involves legal choices, administrative procedures, and specific immigration procedures for foreign managers. The type of establishment determines not only the legal structure of the company, but also the type of residence permit that the company director will need to apply for in order to legally operate in France.
1. The liaison office: a temporary and light presence
A liaison office allows a foreign company to study the French market without engaging in direct commercial activity. It is an observation post, useful for testing the viability of the project, meeting partners, and preparing for a more comprehensive future establishment.
Administrative formalities:
- No registration in the Trade and Companies Register (RCS) is required, unless the office employs staff.
- If employees are recruited, the office must register with the INPI's Guichet Unique (one-stop shop) and obtain a SIRET number.
- Social security contributions are payable to URSSAF – Foreign Companies Department: https://www.foreign-companies.urssaf.eu.
- No minimum capital is required.
Residence permit for the manager:
- If the manager does not reside in France: no residence formalities are required; a short-stay business visa (type C) is sufficient.
- If the manager moves to France temporarily to supervise operations:
→ Long-stay “visitor” visa, valid for one year, without work authorization.
2. The branch: a commercial establishment without creating a French company
The branch is a subsidiary of the foreign company that directly carries out commercial activities in France. It remains legally dependent on the foreign headquarters, but must comply with French tax and social security obligations.
Administrative formalities:
Mandatory registration with the Trade and Companies Register (RCS) via the One-Stop Shop (INPI).
Documents to be provided:
- Articles of association of the parent company translated into French and certified as true copies;
- Proof of domicile of the branch in France;
- Appointment of a legal representative (agent or employee);
- Copy of the foreign company's registration in its country of origin.
- Registration fees: approximately €70.
- Issuance of a K-bis extract, certifying the legal existence of the branch.
- The branch must keep its own accounts, file its accounts with the registry, and pay French taxes (corporate income tax, VAT, CFE, CVAE).
Residence permit for the manager:
Talent Passport – Corporate officer for managers representing a foreign company.
Conditions:
- Be an employee or corporate officer of the parent company;
- Provide proof of at least 3 months' seniority within the group;
- Receive gross annual remuneration of more than €60,000;
- Be responsible for managing the subsidiary or branch in France.
The permit is issued for up to 4 years, is renewable, and allows the spouse and children to obtain an “Accompanying Family” residence permit.
The “ICT Seconded Employee” visa or the “Employee Talent Passport” on assignment may be considered under certain conditions.
3. The subsidiary: the most comprehensive and independent structure
Creating a subsidiary means setting up a company under French law that is completely independent from the parent company. This type of establishment offers increased credibility, provides access to public aid, and guarantees legal protection for investors.
Formalities for creation:
- Choice of legal form (SAS, SARL, SA, etc.).
- SAS: contractual flexibility, suitable for foreign investors.
- SARL: structured, secure, suitable for SMEs.
- SA: suitable for large-scale projects.
Steps for incorporation:
- Drafting and signing of the articles of association (in French);
- Deposit of share capital in a blocked bank account;
- Proof of domicile (commercial lease or domiciliation contract);
- Publication of a notice of incorporation in a legal gazette;
- Submission of the file to the INPI one-stop shop for registration in the RCS;
- Obtaining the K-bis extract within 7 days.
Estimated costs:
- Registration formalities: approximately €60;
- Legal publication: between €120 and €200;
- Lawyer/accountant fees depending on the project.
Residence permit for the manager:
There are two main statuses available:
Talent Passport – Business Creator:
- Minimum investment: €30,000 in an existing or future French company;
- Economically viable project recognized by a competent authority (prefecture or Business France);
- Permit valid for 4 years, renewable, with family reunification possible
- If investment is less than €30,000, self-employed entrepreneur card.
Talent Passport – Economic Investor:
- Direct investment of at least €300,000 in capital, equipment, or professional real estate;
- Creation or maintenance of jobs in France;
- Effective involvement in the management of the company.
4. Joint ventures: strategic cooperation
Joint ventures bring together a foreign company and a French partner. They allow for the sharing of risks and resources, particularly for accessing a regulated sector or local customers.
Administrative formalities:
- Drafting of a partnership agreement or shareholders' agreement;
- Creation of a joint venture (often an SAS) or a cooperation agreement without legal personality;
- Filing with the One-Stop Shop and registration with the RCS if an entity is created.
Residence permit for the manager:
Depending on their role:
- Corporate officer or investor: Talent Passport – Corporate Officer or Economic Investor.
- Co-manager or operational partner: Talent Passport – Business Creator.
- 5. Acquiring a French company: immediate entry into the market
- Purchasing a French company that is already in operation allows for rapid establishment and access to a customer portfolio, premises, and trained staff.
Administrative formalities:
- Preliminary audit (due diligence): legal, tax, social, and accounting review;
- Signing of a letter of intent, then a transfer agreement;
- Tax registration of the transfer:
- 0.1% of the price for shares;
- 3% after a €23,000 allowance for company shares.
- Publication at the registry and modification of the company's K-bis form.
- Residence permit for the manager:
- Talent Passport – Economic investor (investment ≥ €300,000);
- Talent Passport – Business creator investment ≥ €30,000 or self-employed entrepreneur card.
6. Practical advice and deadlines
- Company creation: between 1 and 3 weeks depending on the case.
- Opening a bank account: often the longest step (1 to 2 weeks).
- Opening a CARPA account by lawyers if necessary.
- Prior authorizations: Certificate of economic viability or certificate of the genuine and serious nature of the activity
- Residence permit application: to be submitted to the French consulate in the country of origin or, for a renewal, to the relevant prefecture in France.
- Recommended support: by our law firm FB AVOCAT contact@legalfb-avocat.com.
Conclusion
The type of establishment determines not only the legal structure of your business, but also the applicable immigration procedure.
To test the market: Liaison office + business visa.
To carry out a commercial activity: Branch office + Talent Passport – corporate officer.
For a long-term presence: Subsidiary + Talent Passport – creator or investor.
To cooperate with a local partner: Joint venture + appropriate Talent Passport.
Thanks to a clear legal framework, short registration times, and simplified residence permits, France is now one of the most attractive countries in Europe for foreign executives and investors.
Our firm assists foreign investors, executives, and entrepreneurs in all stages of their establishment in France, combining legal, tax, and immigration expertise. We get involved right from the preparatory phase to determine the most suitable form of establishment (liaison office, branch, subsidiary, joint venture), draft the articles of association, register the company with the Trade and Companies Register, deposit the share capital, find a registered address, and ensure compliance with accounting and social security requirements. At the same time, we take care of all professional immigration procedures for executives and their families: Talent Passport – business creator, economic investor or corporate officer, follow-up with prefectures, consulates and relevant authorities, as well as the renewal of residence permits.
Our team is available to assist you at contact@legalfb-avocat.fr, on 09 85 40 18 64 (France) or +221 77 173 69 05 (Senegal).
The firm's offices are located at:
11 rue Galin, 33100 Bordeaux
7/11 Place des Cinq Martyrs du Lycée Buffon, 75014 Paris
14 rue Woro Fila, Fann Hock, Dakar
