How to Set Up an Entity in France

Setting up a legal entity in France offers a gateway into one of Europe’s largest economies and brings access to the broader EU market, high-quality infrastructure, and a business environment increasingly welcoming to foreign investors. France’s strategic location and its numerous incentives for innovation and international expansion make entity formation particularly appealing.

That said, the process is moderately bureaucratic: you’ll need to navigate French-language documentation, deal with local administrative practices, and coordinate tax, social-security, and registration requirements. Key challenges include preparing incorporation documents in French, meeting residency or permit conditions if you’re non-EU, and understanding employment regulations. On the benefit side, establishing a French entity gives you direct local presence, limited liability, and the ability to directly hire employees under French labor contracts.

Disclaimer: This content is for informational purposes only and does not constitute legal, tax, or financial advice. Always consult official sources before acting.

What does “opening an entity” mean in France?

In France, opening an entity means registering a locally governed company (most commonly a subsidiary) or branch that has legal capacity under French law, obtaining a trade registration, tax identifiers, and social registrations so that the business can operate commercially in France. Typically, this involves incorporation through the local trade registry, registration with the tax authority and social security systems, and local banking.

Entity overview in France

Below is an overview of what establishing an entity in France looks like, including key authorities, parameters, and considerations.

Step-by-step guide: How to open an entity in France

Step 1: Choose the right structure

For French citizens and residents, the SARL is a common and practical choice, offering limited liability and a straightforward setup well suited to small and medium-sized businesses or family enterprises. For international entrepreneurs, the SAS is often preferred for its flexibility in governance, ease of management, and suitability for subsidiaries or startups seeking a modern, investor-friendly structure. Larger corporations may opt for the SA, typically used by established companies planning to raise capital or list shares publicly. Alternatively, a branch (établissement) enables a foreign parent company to operate in France without forming a separate legal entity, though the parent remains fully liable for its French operations.

Step 2: Verify business name availability

You must check your proposed company name against the trade register via the portal of the Greffe and ensure it is not already registered or causing confusion with a similar name. Naming restrictions apply (for example, avoiding misleading titles or similarity to existing names). Once available, you may proceed to the reservation of the name if required.

Step 3: Prepare incorporation documents

You will need to draft and prepare a number of documents, including:

• Articles of Association (Statuts) — specifying the company’s purpose, share capital, number of shares/units, governance, etc.
• Corporate register of shareholders/directors (Répertoire des associés, etc)
• Proof of deposit of share capital into a dedicated account (see Step 4)
• Declaration of non-conviction and residence of directors (for non-French nationals)
• Certificate of publication of legal notice (Avis de constitution) in a legal-announcement journal

Step 4: Register with the Greffe du Tribunal de Commerce

Submit your application online or via the local trade registry office (Greffe) along with all required documents. Once approved, you receive a SIREN / SIRET company registration number, a K-bis extract (certificate of incorporation), verifying your company is formally established.

Step 5: Register for tax and social security

Once incorporated, you must register the company for corporate tax with the Direction Générale des Finances Publiques (DGFiP) and obtain a VAT number, if applicable. You must also register as an employer with the social-security authorities, i.e., Union de Recouvrement des cotisations de Sécurité Sociale et d’Allocations Familiales (URSSAF), and set up payroll registration if you intend to hire staff.

Step 6: Open a corporate bank account

You will need a French-based bank account to deposit the share capital (unless using a notary deposit arrangement) and to operate your business. KYC (know-your-customer) requirements apply with identity documents, proof of address, and corporate charter. Some banks may require a minimum deposit, though legally the share capital may be as low as €1. A local bank can facilitate payments in euros and interactions with French suppliers and authorities.

Step 7: Set up payroll and employment compliance

To legally hire employees in France, you must register the employer with Urssaf, establish French-language employment contracts that comply with the Labor Code (Code du Travail) and applicable collective bargaining agreements, and enroll employees in social-security schemes covering health, pension, and unemployment insurance. Employers must also make regular social and payroll contributions.

French labor law is among the most protective in the world, emphasizing employee rights, job security, and work-life balance. Employers must comply with strict rules on working hours, paid leave, termination procedures, and data protection, and any deviation can result in significant penalties. Employment compliance is not a one-time step but an ongoing obligation requiring careful monitoring of regulatory changes and adherence to collective agreements.

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Post-registration obligations

After incorporation, companies in France must stay compliant with their governance, tax, and employment obligations. Typical requirements include:

• Tax and financial reporting: File annual corporate income tax returns with the DGFiP (Impôt sur les Sociétés), periodic VAT returns if registered, and submit annual financial statements (bilan, compte de résultat) under French GAAP.
• Corporate registers: Maintain up-to-date records of directors, shareholders, and ultimate beneficial owners (UBOs). Update changes with the Greffe within the prescribed timeframe (often within one month).
• Compliance tracking: Track deadlines for tax prepayments (acomptes) and other filings using a compliance calendar or service provider to avoid penalties.
• Licenses and renewals: Some activities require licenses or professional registrations—these must be renewed or notified to the relevant ministries or local authorities as required.
• Recordkeeping: Retain accounting, payroll, HR, and transaction records for a minimum of ten years (as per French commercial law) or as otherwise specified.
• Employment law compliance: Maintain compliant employment contracts, social-security enrolment, payroll reporting and contribution payments, abide by working-time and termination rules, and monitor data-protection (GDPR) obligations.

Taxes and financial considerations

Here are the key tax obligations you should be aware of when operating a French entity:

• Corporate income tax: The standard rate is 25% for companies with fiscal years opened from 1 January 2022 onwards. A reduced rate of 15% applies to the first €42,500 of profits for qualifying small companies.
• VAT: The standard VAT rate is 20%. Reduced rates of 10% and 5.5% apply for certain goods and services. Registration is mandatory once turnover exceeds €27,500 in a calendar year.
• Payroll / social contributions: Employer social security contributions generally amount to about 30%–33% of gross salary, though total employment costs can rise to around 40% when including additional mandatory or sectoral charges.
• Accounting standards: French companies must prepare financial statements under French GAAP; in some cases, IFRS may apply for consolidated groups.

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Expand internationally with Deel

Whether you’re hiring through an EOR or establishing your own local entity, Deel’s all-in-one platform gives you everything you need to expand into France—quickly, compliantly, and with confidence. From market entry to ongoing operations, Deel helps you hire, onboard, and manage teams seamlessly from day one.

With Deel, you can:

• Test new regions using Deel’s local entities through our Employer of Record service—hire employees compliantly, delegate payroll and taxes, and access localized employment contracts.
• Open entities with Deel Entity Setup, where our team manages everything—from incorporation and tax registration to coordination with local experts.
• Centralize your compliance and records with Deel Entity Management, including automated filings, calendar reminders, and visibility across all entities.
• Integrate with Deel Payroll and Deel HR for compliant payments, benefits, and workforce oversight—all in one platform.

For companies transitioning from the EOR model to owned entities, Deel ensures a smooth handover and consistent compliance every step of the way. Enter new markets, onboard talent, and manage your global workforce—all through one unified platform.

FAQs

How long does it take to open an entity in France?
Typically, around 2-4 weeks from submission of complete documentation, with local support, you may achieve registration in about 10 working days. Find out how long setup takes with our Entity Setup Calculator.

What is the minimum capital required?
Legally, you can incorporate with as little as €1 (≈ $1.10 USD) for SARL or SAS; however, in practice, many founders choose more for credibility.

Can foreign companies own 100 % of an entity in France?
Yes—foreign ownership is permitted under French law, and there is no requirement for a local French national shareholder.

Do I need a local director or representative?
There is no strict requirement for a French national director. However, if you are a non-EU/EEA national exercising management functions, you may need an appropriate visa/residence permit allowing business activity in France.

How much does it cost to register an entity?
Official fees start around €35–€60 for company incorporation. However, optional professional services (legal drafting, accounting, or notary assistance) can increase the cost to a few hundred euros, depending on the company type and service providers. Find out the setup cost with our Entity Setup Calculator.

Can I hire employees before the entity is fully registered?
No. To legally hire employees under French employment contracts, you generally need the entity to be registered, employer social-security registration completed, and payroll setup in place. However, you may use an Employer of Record service (such as Deel’s EOR) to hire talent immediately while entity setup is underway.

Can Deel help me open an entity in France?
Yes. Deel Entity Setup manages the end-to-end process—from registration to payroll compliance—in over 100 countries. Deel’s local experts handle documentation, filings, and legal requirements on your behalf.

Does Deel offer ongoing compliance and payroll support?
Yes. Deel offers both managed services and self-service tools to help you stay compliant.

If you’re using Deel Entity Management, Maintenance, EOR, or Payroll, our team handles payroll, benefits, filings, and compliance obligations on your behalf.

For teams managing their own entities, Deel Compliance Hub makes staying compliant simple by providing real-time regulatory updates, risk alerts, and workforce insights across 150+ countries. Proactively manage compliance with our Compliance Monitor, Workforce Insights, and an AI-powered Worker Classifier, staying ahead of changing employment laws.

Can I switch from Deel EOR to my own entity later?
Yes. Deel supports seamless transitions when you’re ready.