Navigating Legal and Regulatory Considerations

Corporate Structure Options

Subsidiary (Most common): - Separate legal entity - Limited liability protection - Local credibility - Higher setup costs - Full regulatory compliance

Branch Office: - Extension of French company - Simpler setup - Parent company liability - Limited local presence - Tax implications vary

Representative Office: - Market research only - No commercial activities - Minimal compliance - Limited utility

Employment Across Borders

Option 1: Local Employment - Hire through local entity - Full compliance with local laws - Higher administrative burden - Better for permanent presence

Option 2: Employer of Record (EOR) - Third-party employment - Quick setup - Compliance handled - Higher per-employee cost - Good for testing markets

Option 3: Remote from France - Keep employees in France - Simpler administration - Potential tax issues - May lack local presence

VAT and Tax Considerations

VAT Registration: - Required when exceeding country thresholds - Distance selling rules apply - OSS (One-Stop Shop) simplifies compliance - Digital services have special rules

Corporate Tax: - Each country has different rates - Transfer pricing documentation crucial - Consider IP location - Profit allocation rules

Key Principle: Get professional advice early—mistakes are costly.