In terms of a long-term presence, it is first necessary to distinguish between a branch and a subsidiary.
A branch would be an extension of the foreign company in France: the branch would be the same legal person as the foreign company. The liabilities of the branch would be coterminous with the liabilities of the foreign company.
A subsidiary would be a separate company from the foreign parent. It would be a means of hiving off liability if a limited liability company is chosen.
In France, there are three main types of limited liability company:
- The SA – société anonyme which is generally fitted for more complex corporate structures, including listed companies
- The SAS – société par actions simplifiée which is generally seen as the most flexible corporate vehicle. The SAS is the simplest vehicle for 100% controlled subsidiaries
- The SARL – société à responsabilité limitée which is a more closed company and traditionally used for smaller business with a close relationship between shareholders.