Setting up a subsidiary or a branch in France in 2026 is a great way for foreign companies to expand their activity. Below our lawyers in France make a brief comparison between the branch office and the subsidiary in this country. We can also help with the registration of these business forms.
Requirements for subsidiaries and branches in France
In terms of requirements for opening a branch or a subsidiary in France, both companies must respect a few important formalities and procedures. Here are some of them:
- both types of entities are considered tax residents in France, therefore they will need registered or legal addresses here;
- both types of structures will need to have their own statutory documents filed with the French Companies Register;
- the opening of separate bank accounts from those of the parent company is mandatory only in the case of the subsidiary;
- the foreign company is required to obtain the necessary licenses and permits which enable the branch or subsidiary to operate in France;
- both types of entities must register with the French tax authorities and obtain tax and VAT numbers.
When it comes to the business permits of a subsidiary, this can complete additional services than the parent company, therefore the licensing requirements can be more extensive. Referring to the share capital requirements for opening a branch or a subsidiary in France, things are radically different, because the subsidiary needs to fulfill the share capital requisites in accordance with the chosen type of structure.
Considering the subsidiary can be established as a private limited liability company or a public company, the foreign company must secure at least EUR 37,000 in the case of the public company.
Business updates in France for 2026
Setting up a branch or a subsidiary in France requires special attention to the business climate and changes to the legislation. In 2025, various changes occurred, and among these, the most important are the following:
- The “Finance Bill” in France has been reviewed in 2026 – under the new provisions, companies need to pay a surtax of 20.6% provided that they have a turnover below EUR 3 million for the financial year when the contribution is due – meaning, for 2026, and for the previous financial year;
- Enterprises established in France and registering more than EUR 3 billion as annual turnover must pay the 41.2% surtax after the 31st of December 2025.
Please mind that the tax laws for 2026 apply the 20.6% surtax only for companies that have a turnover above EUR 1,5 million. Thus, small and medium sized companies, which usually have a turnover below this sum, are excluded from taxation during the financial year of 2026.
Also, in 2026, the 20% tax contribution, introduced last year and imposed on high net worth individuals, will be maintained. According to the law, this is temporary tax measure that will be maintained until the country’s public deficit is below 3%.
Besides assistance in opening a branch or a subsidiary in France, our experts can help in other matters too. For instance, with the legal advice provided by our French lawyers, foreigners can buy a property in France. All the legal aspects can be properly managed by our team, so feel free to contact our law firm in France and ask for assistance.