Does a branch have separate legal personality?

No. A branch forms part of the foreign company. A subsidiary is a distinct legal person. The consequences of that distinction need to be assessed with the proposed activity and any guarantees or contractual arrangements.

Can I choose the route from a questionnaire?

The Entry Route Finder provides a preliminary orientation only. Contradictory answers, regulated activity, complex ownership or significant tax questions are directed towards a tailored review.

Can I operate without a French company?

That may be possible depending on the activity. It does not mean there are no French obligations. Contracts, employment, tax, VAT and regulation may need review even without incorporation.

French business law · Lancier Avocats

French Branch or Subsidiary?

A subsidiary is a separate French company. A branch is an establishment through which the foreign company operates directly. The distinction affects responsibility, governance and administration; the choice needs to reflect the actual French activity.

Guillaume Prom Thiounn · Attorney at the Paris Bar · Updated 9 October 2026

Find Your French Entry Route Fees & scope

Separate French company

Subsidiary

Foreign parent company
French subsidiary
Contracts · Employees · Operations

A distinct legal person with its own governance.
The French company enters into its own contracts.
Separate corporate approvals and administration.
Exposure can also depend on guarantees, commitments and conduct.

The foreign company operates directly

Branch

Foreign company
French branch
French operations

An establishment of the foreign company.
No separate legal personality.
The foreign company remains the contracting business.
French registration, tax and accounting questions still need review.

01 / Key considerations

Describe the activity before choosing the vehicle.

Map how the business will sell, sign, invoice, recruit and make decisions in France. A business-development presence or sales from abroad may raise different questions from an office with an operational team.

Where contracts are negotiated and signed
Who manages the French activity
Employees, premises, inventory or local operations
The intended relationship with the foreign business

02 / Key considerations

Look beyond registration costs.

A comparison should consider the entire operating arrangement. Separate corporate governance can be useful; operating through the foreign company may suit other facts. Neither route is universally better or a shortcut around obligations.

Parent-company exposure and any guarantees
Corporate decisions and reporting arrangements
Banking, accounting and ongoing administration
Tax and permanent-establishment analysis in a separate agreed scope

03 / Key considerations

A French entity may not be the next step.

Before incorporating, identify the requirements created by the activity you already carry on or plan to carry on. Selling to French customers from abroad does not automatically answer the question either way.

Cross-border contracts and trading terms
VAT and permanent-establishment questions
Hiring and regulatory requirements
Reassessment when the French activity changes

Practical questions

Before you choose.

General information, not advice on a particular project. For official background, see Business France’s establishment options and company formation steps.

Legal services are provided by Lancier Avocats. View Guillaume Prom Thiounn’s professional profile.

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