The liaison office, to observe
A liaison office prospects, represents and prepares the ground, without signing contracts or invoicing. In principle it is not taxed in France. It is a holding solution, which the authorities reclassify as soon as any commercial activity appears.
The branch, to test
A branch carries on a genuine business but has no legal personality: the parent company is liable for its debts without limit. It is entered in the trade register and pays corporation tax on its French profits.
The subsidiary, to settle
A subsidiary is a French company in its own right, most often an SAS. The parent’s liability is limited to its contribution, and local partners — banks, customers, landlords — clearly prefer it. Allow three to six weeks to register it, opening the bank account being the longest step.
A director who does not live in France needs no residence permit to be appointed. They will need one if they move there.
This article provides general information and does not constitute advice. Every situation calls for its own analysis.
