Branch or subsidiary in France: what is the difference for a foreign company?
A branch (succursale) is an extension of the foreign parent company with no separate legal personality, while a subsidiary (filiale) is a new French legal entity, typically an SAS or SARL, owned by the foreign parent. The subsidiary carries its own liability separate from the parent, while the branch does not.
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How it works
Both structures are registered with the French business register and receive a SIREN and SIRET, and both can employ staff and pay tax in France. A subsidiary sets its own share capital and governance under French company law, while a branch operates under the legal structure of the foreign parent, reporting through it.
Commonly mixed up with
A branch is sometimes assumed to shield the parent company from French liabilities in the same way a subsidiary does. Because a branch has no separate legal personality, obligations incurred in France can extend to the parent company.
Branch or subsidiary in France: what is the difference for a foreign company?
| Knowledge, Paris | Business and finance |
|---|---|
| Short answer | A branch (succursale) is an extension of the foreign parent company with no separate legal personality, while a subsidiary (filiale) is a new French legal entity, typically an SAS or SARL, owned by the foreign parent. The subsidiary carries its own liability separate from the parent, while the branch does not. |
| How it works | Both structures are registered with the French business register and receive a SIREN and SIRET, and both can employ staff and pay tax in France. A subsidiary sets its own share capital and governance under French company law, while a branch operates under the legal structure of the foreign parent, reporting through it. |
| Commonly mixed up with | A branch is sometimes assumed to shield the parent company from French liabilities in the same way a subsidiary does. Because a branch has no separate legal personality, obligations incurred in France can extend to the parent company. |
| Last reviewed | 2026-08-08 |
Short questions
- Does a branch pay French tax?
- A branch is generally subject to French corporate tax on profits attributable to its French activity.
- Is a branch faster to set up?
- A branch avoids drafting new articles of association, which can simplify the setup compared with a subsidiary.
- Can a branch later become a subsidiary?
- Yes, activity can be transferred into a newly formed subsidiary at a later stage.
- Does either need a French bank account?
- Both typically need a French account for ongoing operations, though capital deposit rules differ.
- Where is the comparison published?
- Service-public.fr publishes guidance comparing branch and subsidiary structures.
Sources
More in this track
- SAS or SARL in France: what is the difference?
- What are the SIREN and SIRET numbers for a French company?
- When does a business register for VAT in France?
- How does corporate tax work for a French company?
- What does registering as an employer in France involve?
- What is micro-entrepreneur status in France?
- Do you need a French bank account to set up a company?
- EURL or SASU for a single founder in France: what is the difference?
- What social contributions does a French employer pay?
These pages explain how the rules work and link the authority that owns them. They are not legal, tax or immigration advice, and amounts and thresholds change, so open the source before you act.
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