ESTABLISHING A FOREIGN COMPANY IN FRANCE
LPG Paris-Chartered Accountants offers advice on the following topics: how to establish a foreign company in France, French subsidiaries or branches; registering for VAT; hiring employees in France.
Creation of French subsidiaries or branches of foreign companies
LPG Paris assists foreign companies wishing to set up operations in France in the following ways:
- Creation of French subsidiaries of foreign companies
- Creation of French branches of foreign companies
Hiring employees in France by foreign companies
When an employee resides in France and works (at least partly) in France, he is normally subject to French labor and social security legislation, regardless of the country where his employer is established.
Foreign companies wishing to hire staff in France are not obliged to establish themselves in France as a subsidiary or branch, but they may choose to:
- Direct registration with the URSSAF
- Hiring a representative in France
VAT registration in France of companies established outside France
The following are some cases where foreign companies may be required to declare VAT to the French authorities:
- When a foreign craftsman comes to work on a building located in France on behalf of individuals;
- When a foreign company maintains a stock of goods in France from which it makes deliveries to individuals residing in France ...
- Mail order companies, established abroad, which sell to private individuals in France for more than EUR 100,000 per year.
- (...)
The resulting formalities will differ whether the foreign company is established in one of the member states of the European Union (EU) or outside the EU:
- Companies that are not established in the EU are required to designate a tax representative in France, who then assumes all reporting obligations.
- Firms established in another EU Member State are normally required to fulfill their reporting obligations personally (or with their chartered accountant ). However, they have the option of appointing a tax agent.