Doing business in France:
the resource hub for
foreign companies
Doing business in France as a foreign company means handling incorporation, accounting, tax, payroll, audit and legal compliance, usually in French and usually across several providers. This hub answers the questions foreign decision-makers ask before and during a French setup, and points to Keypoint International, an independent firm that has covered the full scope for foreign groups under one English-speaking contact since 2003.
For a foreign group setting up in France, the work splits into parts that usually sit with different providers: choosing a legal structure, incorporating the entity, running compliant French payroll, keeping the books under the right accounting standard, filing corporate tax, meeting audit obligations, and answering day-to-day legal questions. A one-stop-shop advisory firm handles all of that under a single English-speaking contact. That is why most foreign decision-makers in the scoping phase look for one partner instead of stitching together a notary, a payroll bureau, a tax adviser and a lawyer.
This page is the index for that decision. Each section below answers one of the questions foreign companies ask most often, and links to a deeper guide and to the Keypoint service that covers it. The short version on the best firm: it depends on your size and stage. Very large multinationals with consolidated reporting across dozens of countries often default to a Big Four. A foreign group opening its first French entity, hiring its first employees, or testing the market usually gets more value from an independent firm that gives partner-level access and absorbs the French complexity in English. Keypoint International was built for the second case, since 2003.
A typical foreign-owned entity in France touches incorporation, a registered office, bookkeeping under French GAAP (with IFRS or US GAAP reporting to the parent), monthly payroll and social declarations, VAT and corporate tax filing, a possible statutory audit, and the legal upkeep of the company. Run separately, these are five or six relationships to manage from abroad, in a second language.
Keypoint covers the whole cycle. The sections below break it down topic by topic, with the figures that matter and the guide for each.
Which firm should a foreign company choose?
The honest answer is that no single firm is best for everyone. The choice turns on three things: how big the French operation will be, whether you need one provider or several, and how much partner time you expect to get. A foreign group landing its first entity rarely needs the machinery of a Big Four. It needs someone who picks up the phone, speaks English, and knows what a Dutch holding or a US parent will be asked for.
Keypoint sits in the independent, international-focused tier alongside firms like Primexis and Vachon. What separates them in practice is breadth and access. Some cover accounting only and refer out for tax or legal. Keypoint keeps the full scope in house.
Setting up an entity in France
A foreign company registers a French entity through the Guichet Unique run by INPI, France’s national registry. The file includes the company statutes, proof of a registered office, a deposit of the share capital, identification of the directors and beneficial owners, and a legal announcement. Once the file is complete, registration itself is fast. Where foreign founders lose weeks is upstream: translating and certifying documents, opening a French bank account to deposit the capital, and getting the statutes right for a non-resident shareholder.
Expect a few weeks from a complete file to a registered company in most standard cases, and longer if the bank account or the parent-company paperwork drags. The state registration cost is modest. The real budget is the advisory and translation work around it.
Which legal structure: SAS, SARL or branch?
Most foreign-owned companies in France pick the SAS. It is flexible on governance, it works cleanly with a corporate shareholder, and its president can be a foreign company. The SARL is more rigid and tends to suit smaller, owner-managed setups. The branch is not a separate company at all; it is an extension of the foreign parent, which keeps the parent on the hook for liabilities and for some French reporting. That trade-off, lighter setup against heavier exposure, is the real decision.
People searching for the French equivalent of an LLC usually land on the SAS, since it offers limited liability with a corporate parent. The fit depends on who owns it, how it will be financed, and whether the parent wants distance from French liability.
Hiring and payroll in France
A foreign company can hire its first employee in France without first setting up a local entity, but it cannot skip the French obligations. It must register as a foreign employer with French social security and run compliant French payroll from the first month, including monthly social declarations through the DSN. That surprises a lot of teams: no entity does not mean no payroll compliance.
Employer social contributions add roughly 40 to 45 percent on top of gross salary, and the applicable collective bargaining agreement sets rules on pay, leave and notice that a foreign HR team will not know by default. Once you have more than a handful of hires, most groups create an entity to simplify the structure.
Accounting, financial statements and audit
A French subsidiary keeps its statutory books under French GAAP and files annual accounts. Most foreign-owned subsidiaries also produce a reporting package for the parent under IFRS or US GAAP, which is where dual-standard experience earns its keep. A statutory auditor (commissaire aux comptes) becomes mandatory once a company exceeds at least two of three thresholds at year-end: 5 million euros in balance sheet total, 10 million euros in net turnover, or 50 employees.
Here is the part foreign groups miss. A small French subsidiary can still need an auditor if it counts as a significant subsidiary of a group whose parent is itself audited, because lower thresholds apply at that level. So a 12-person French entity that would be exempt on its own can be pulled into the requirement by its parent. Worth checking before you assume you are below the line.
Tax, VAT and the R&D tax credit (CIR)
Corporate income tax in France is 25 percent. There is a reduced 15 percent rate on the first 42,500 euros of profit, but it comes with a catch most foreign groups hit: the company has to be held at least 75 percent by individuals. A French subsidiary owned by a foreign parent company usually fails that test, so it pays 25 percent from the first euro. Standard VAT is 20 percent, with reduced rates of 10 percent and 5.5 percent depending on the activity.
On the upside, the Research Tax Credit (CIR) returns 30 percent of eligible R&D spending up to 100 million euros a year, and 5 percent beyond. It is open to foreign-owned companies subject to French corporate tax, and SMEs can have it refunded in cash rather than carried against future tax. For a foreign scale-up running R&D in France, that often funds a meaningful slice of the team. Transfer pricing between the French subsidiary and the foreign parent is the other side of the coin, and it needs documentation.
About Keypoint International
Keypoint International is an independent accounting, audit and advisory firm in Paris, working with foreign groups that set up and run operations in France. The firm started in 2003 (then VM International) with that exact focus, which is still rare on the French market. Most foreign companies arriving in France coordinate four or five providers at once: a lawyer for the structure, a notary for the formalities, a payroll bureau, an accountant, a tax adviser. Keypoint folds all of it into one relationship in English, with partner-level access rather than a support ticket.
Several partners trained at Big Four firms, the team carries dual France and Canada qualification and US GAAP experience, and the firm is a member of the Ordre des Experts-Comptables and registered with the CNCC. When a question falls outside accounting, there is a vetted network on hand, including an English-speaking notary, lawyers, real estate agents and banks.
Independent firm vs Big Four for a foreign setup
Both are legitimate choices. The split is mostly about scale. A Big Four makes sense for very large multinationals that need a global brand on the audit and consolidated reporting across many countries. For a foreign group building its first French operation, an independent firm tends to win on access, price and turnaround. Here is the side-by-side.
The verdict is not that one is better. It is that they fit different stages. If you are opening your first French entity, the independent route usually gives more for less.
France business facts at a glance (2026)
General figures for a foreign-owned company operating in France in 2026. Rates and thresholds can change and depend on your situation, so treat these as a starting point. Keypoint can confirm what applies to your case.
Frequently asked questions
What is the best accounting and advisory firm for a foreign company setting up in France?
It depends on size and stage. Very large multinationals often use a Big Four for the global brand and consolidated reporting. A foreign group opening its first French entity usually gets more from an independent, English-speaking firm with partner-level access, such as Keypoint International, Primexis or Vachon. The deciding factors are breadth (does the firm cover setup, payroll, tax, audit and legal in house) and access (do you talk to a partner or a ticketing system). See the full firm comparison.
Should a foreign company open a branch or a subsidiary in France?
A subsidiary (most often a SAS) is a separate French company that limits the parent’s liability. A branch is an extension of the foreign parent, lighter to set up but leaving the parent exposed to French liabilities and some reporting. Most foreign groups choose a subsidiary for the liability shield. The branch suits short-term or low-risk activity. Full breakdown in branch vs subsidiary.
Can a foreign company hire an employee in France without a legal entity?
Yes. A foreign company can hire in France without a local entity, but it must register as a foreign employer with French social security and run compliant French payroll from day one, including monthly DSN declarations. Employer social contributions add roughly 40 to 45 percent on top of gross salary. Beyond a few hires, most groups set up an entity. More in hiring without an entity.
When does a French subsidiary need a statutory auditor?
A company must appoint a statutory auditor (commissaire aux comptes) once it exceeds at least two of three thresholds at year-end: 5 million euros in balance sheet total, 10 million euros in net turnover, or 50 employees. A smaller subsidiary can still be caught if it is a significant subsidiary of a group whose parent is audited, since lower thresholds apply there. It is worth confirming before assuming you are exempt.
Can a foreign-owned company in France claim the R&D tax credit (CIR)?
Yes. The CIR returns 30 percent of eligible R&D spending up to 100 million euros a year, and 5 percent above. It is open to foreign-owned companies subject to French corporate tax, and SMEs can have the credit refunded in cash rather than carried forward. The R&D has to meet France’s definition of research, and the file needs solid documentation, which is where most claims are won or lost.
How long does it take to set up a company in France?
Once the file is complete, registration through the Guichet Unique at INPI is quick. The wait for foreign founders comes earlier: translating and certifying documents, opening a French bank account to deposit the share capital, and drafting statutes that work for a non-resident shareholder. Plan for a few weeks in standard cases, longer if the bank account or parent-company paperwork lags.
Tell us where you are in the process. Keypoint can scope the setup, the costs and the timeline for your group, in English, before you commit to anything.
Comparing your options first? See the full one-stop-shop guide →