As Indian businesses expand globally, France has emerged as a top destination for establishing a European presence. If you're looking to strengthen your footprint in Europe, setting up a subsidiary company in France offers long-term advantages such as brand credibility, operational autonomy, and access to the EU market.
This blog is a comprehensive guide for Indian companies exploring subsidiary incorporation in France, including benefits, legal structure, step-by-step process, and compliance.
Why Set Up a Subsidiary Instead of a Branch?
A subsidiary is a separate legal entity, even though it's controlled by the parent company. This structure offers distinct advantages over a branch office.
Benefits of a French subsidiary:
Operates as an independent legal entity (limited liability)
Easier to engage in contracts, partnerships, and tenders
Builds greater trust with French clients, vendors, and regulators
Eligible for local funding, R&D grants, and startup incentives
Helps manage and separate risk from Indian operations
Easier to sell or transfer if needed in the future
Legal Structure for Subsidiaries in France
The most common form for a subsidiary is the Société par Actions Simplifiée (SAS) — a simplified joint-stock company that is flexible, scalable, and foreign-investor friendly.
Key highlights of SAS:
No minimum capital requirement (but typically €1,000 is recommended)
Can be 100% foreign-owned
Only one shareholder/director needed
Limited liability structure
No mandatory statutory auditor unless thresholds are crossed
Suitable for trading, consulting, technology, and manufacturing businesses
Step-by-Step: How to Set Up a Subsidiary in France
1. Finalize Business Plan and Structure
Define the role of the subsidiary (sales office, operations hub, R&D center)
Identify services, target markets, and hiring plans
Appoint a director (can be Indian or French resident)
2. Reserve Company Name
Check availability and reserve your French business name through the official registry.
3. Draft Legal Documents
Articles of Association (Statuts)
Proof of registered address in France
Parent company resolution approving incorporation
Identity documents of directors/shareholders
Ensure these are translated into French and notarized as required.
4. Open a French Business Bank Account
Deposit initial share capital
Obtain a certificate of deposit (attestation de dépôt de fonds)
Banks may require in-person verification or a local agent.
5. Register the Company
Submit your dossier to the Centre de Formalités des Entreprises (CFE), which coordinates registration with:
INSEE (for your SIRET company number)
Commercial court (Greffe)
Tax authorities (for VAT and other filings)
Social security bodies if hiring employees
6. Post-Registration Activities
Activate VAT and obtain intra-community number
Register with URSSAF (social contributions) if employing staff
Subscribe to business insurance
Set up accounting, payroll, and tax filing system
Tax and Compliance for French Subsidiaries
Corporate Tax: 25% (standard rate in 2025)
VAT (TVA): 20% standard rate, with exceptions for some goods/services
Social Security Contributions: Paid on top of gross salaries
Annual Accounts: Filing of profit & loss, balance sheet, and auditor report (if applicable)
Transfer Pricing Documentation: Required if the French subsidiary has intercompany transactions with its Indian parent
A local tax consultant is highly recommended to manage your compliance obligations.
Hiring Staff for Your Subsidiary
France has protective labor laws, but also provides access to a skilled, multilingual workforce.
Options include:
Hiring full-time French employees with local contracts
Using freelancers or consultants
Posting Indian staff temporarily under secondment (requires visa and legal compliance)
Exportis can help you understand hiring models, costs, and social contributions in advance.
Funding, Grants & Incentives
France offers multiple benefits to foreign-owned subsidiaries, such as:
R&D tax credit (Crédit d’Impôt Recherche)
Innovation subsidies
Regional grants for setting up in priority areas
Access to EU innovation programs (Horizon Europe, etc.)
Your eligibility depends on company structure, sector, and location. Exportis assists in exploring and applying for relevant grants.
Why Work with Exportis?
Exportis specializes in setting up subsidiary companies in France for Indian businesses, offering end-to-end support from legal structure to market expansion.
Our services include:
Company incorporation and compliance
Registered address and bank account setup
Tax advisory and filing
Cross-cultural and HR consulting
Ongoing business development and EU client acquisition
Whether you're expanding a technology business, setting up a logistics hub, or looking to enter France as part of your European roadmap — Exportis ensures a smooth, compliant, and successful setup.
Ready to Launch in France?
Setting up a subsidiary in France can unlock access to an entire continent. With the right guidance, you can scale operations, build trust, and grow your business in one of the world’s most sophisticated markets.
Connect with Exportis to explore how we can turn your French expansion strategy into a structured, compliant, and profitable reality.
