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Incorporate a Holding Company in France
Establish your French holding company with our corporate lawyers and paralegals, who manage every step for you — from drafting the articles of association and defining the shareholding structure to completing all filings and securing your Kbis extract, the official proof of incorporation.
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What is a French Holding Company
Advantages of Incorporating a French Holding Company
Tax efficiency: Up to 95% exemption on dividends from subsidiaries under the parent-subsidiary regime.
Simplified management: Consolidated decision-making for multiple investments or subsidiaries.
Limited liability: Risks are confined to the company’s capital, protecting personal or group assets.
Capital flexibility: Minimum share capital starts at just €1, freely determined in the bylaws.
Strategic structuring: Facilitates acquisitions, sales, and restructuring operations with legal clarity.
A French holding company offers entrepreneurs and investors a powerful, flexible framework for managing business portfolios and optimizing group taxation.
How to Incorporate a Holding Company in France?
Setting up a French holding company is straightforward when handled by professionals. At FrenchCo.lawyer, our corporate team ensures the process is fast, compliant, and strategically designed to suit your investment goals.
Gathering Essential Information
We collect key details: shareholder identities, shareholding ratios, corporate name, business purpose (holding of shares), registered office address, and proposed governance model (manager or president).
Drafting the Legal Paperwork
Our lawyers prepare tailored articles of association, the appointment act for directors or managers, the beneficial ownership declaration, and the publication notice required for the official legal gazette.
Handling the Share Capital
We help open a company bank account, deposit initial capital, and obtain the bank or notary certificate confirming the funds are locked for incorporation.
Filing with the Commercial Registry
We file the complete dossier — bylaws, capital certificate, manager appointment, and gazette proof — with the Commercial Court Registry (Greffe du Tribunal de Commerce) and follow up until registration is approved.
Delivery of the Kbis Extract
You receive your Kbis extract, the official certificate of incorporation, together with certified copies of all legal documents, ready for use with banks, tax authorities, or subsidiaries.
Why Choose FrenchCo.Lawyer?
All legal work is carried out by registered French lawyers, supported by experienced paralegals, ensuring your holding structure is compliant, strategic, and secure. You receive carefully drafted legal documents tailored to your needs — never templates or shortcuts. From incorporation to registration, every step is handled by qualified professionals who combine efficiency with precision. The result is a holding company that is legally sound, fully operational, and ready to manage your assets, subsidiaries, and investments with confidence.
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What We Need From You to a Incorporate Your French Holding Company ?
To launch your holding company quickly and correctly, please provide:
Key Company Details
Proposed company name, business purpose (e.g., management of shares, investments, consulting), and registered office address (lease, domiciliation, or ownership deed).
Shareholder Information
Identity and address of all shareholders (individuals or companies), shareholding percentages, and corporate documents for legal entities.
Director or Manager Appointment
Identity and residence proof of the appointed manager or president. Special formalities apply if they live outside France.
Share Capital Contributions
Details of cash or in-kind contributions (e.g., existing company shares, real estate, or other assets), along with relevant supporting documentation such as bank certificates or valuations.
And Then?
Once these items are received, our lawyers take care of everything: drafting the legal documentation, completing the filings, and obtaining the Kbis extract confirming your holding company’s registration.
Incorporate a Holding Company – Simple Process, Clear Budget
Flat legal fee starting from €999 excl. taxes*
Additional mandatory costs: publication in the official gazette and Court registry filing fees
No hidden costs, no unpleasant surprises.
Our promise: we are lawyers, not resellers of add-ons. That means:
All documents are drafted by French lawyers.
You receive personal, tailored legal assistance.
Transparent pricing and compliant filings — no upselling, ever.
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Why Choose Us?
We Build Legally Sound, Business-Focused Holding Structures in France
Efficient incorporation: From setup to Kbis delivery, every step is managed with precision and speed by our legal team.
Full compliance: All acts and filings meet current French tax and company law standards, including the régime mère-fille advantages.
Strategic protection: Your holding documents are structured to secure assets, ensure control, and support long-term planning.
Expert oversight: Every file is handled by licensed French lawyers, backed by skilled paralegals for accuracy and accountability.
Let us handle the legal structure of your holding company so you can focus on managing your investments and building your business with confidence.
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Understanding the Incorporation of a French Holding Company
Can a foreigner create and manage a holding company in France?
Yes. Foreign individuals and entities can freely incorporate and manage a French holding company, regardless of nationality. There is no requirement for French citizenship or residency to own or control such a structure.
- Foreign shareholders or parent entities
- Both EU and non-EU investors can hold 100% of the shares in a French holding company.
- The company can itself act as the parent company of other subsidiaries established in France or abroad.
- Managers living outside France
- A non-resident director or president can manage the holding company remotely, without a residence permit, as long as all filings and representations are properly handled before the Registre du Commerce et des Sociétés (RCS).
- A non-resident director or president can manage the holding company remotely, without a residence permit, as long as all filings and representations are properly handled before the Registre du Commerce et des Sociétés (RCS).
- EU/EEA/Swiss nationals residing in France
- They may freely act as directors or presidents. If they move to France, only a simple town-hall registration is required—no residence permit.
- They may freely act as directors or presidents. If they move to France, only a simple town-hall registration is required—no residence permit.
- Non-EU nationals living in France
- They must obtain a valid residence permit allowing business activity (e.g. entrepreneur/profession libérale, talent-entrepreneur visa, or a multi-year permit).
- Non-compliance can trigger administrative or criminal penalties.
- International treaties and exemptions
- Certain bilateral treaties (e.g. with Algeria, Andorra, or Monaco) provide special rights or simplified procedures for business founders.
In short: a holding company can be incorporated and managed by any foreign person or entity, but residence permits may be required if the manager lives in France.
What is the minimum share capital for a French holding company?
There is no statutory minimum under French law. The founder freely sets the capital amount in the company’s bylaws — it can legally start with as little as €1.
However, the appropriate level depends on the planned activity and credibility needs:
- Financial substance: tax authorities often expect a holding company to have enough equity to justify its management role and cover basic expenses (administration, audit, accounting).
- Banking credibility: a nominal capital may deter banks from opening accounts or financing acquisitions.
- Legal risk: if the company’s equity later falls below half of the stated capital, shareholders must decide whether to recapitalize or dissolve the company (C. com. art. L. 223-42).
Capital may be paid up gradually: only 20% of cash contributions need to be released at incorporation, with the balance payable within five years.
In practice, a symbolic €1 capital works legally, but a substantial contribution (often €1,000–€10,000) is recommended for credibility.
Where can the registered office of a holding company be located?
The registered office (siège social) determines the competent Commercial Court, applicable tax administration, and the company’s official legal address. Several options exist:
- Owned or leased premises:
The holding company may use property it owns or rents. Proof of title or a lease is required for registration. - Director’s or president’s residence:
- Possible temporarily (up to five years) or permanently, depending on local zoning and co-ownership rules.
- In Paris and other large cities, domiciliation at home is allowed only if no commercial activity occurs on site.
- Professional domiciliation company:
- The most common solution for holding companies.
- Offers a prestigious address, mail handling, and administrative services.
- Must be approved by the prefecture (société de domiciliation agréée).
- Parent or subsidiary address:
- A holding may register its siège social at the address of a controlled subsidiary or parent company, provided the latter formally authorizes use of the premises.
If domiciliation rules are ignored, the RCS may strike the company off. It is therefore essential to use a valid lease, property deed, or domiciliation contract.
What are the tax rules for a French holding company?
A holding company (société holding) is taxed as any regular French corporation, but it enjoys specific tax advantages under the parent-subsidiary regime and capital gains exemptions.
- Corporate income tax (Impôt sur les sociétés – IS)
- Standard rate: 25% (as of 2025).
- Reduced rate: 15% on the first €42,500 of profit if turnover ≤ €10M, fully paid-up capital, and at least 75% individual shareholding.
- Parent-subsidiary regime (régime mère-fille):
- Dividends received from subsidiaries may be 95% tax-exempt, provided the holding owns ≥10% of the subsidiary’s capital and has held it for at least two years.
- Only 5% of the dividend is reintegrated into taxable income.
- Capital gains on share disposals:
- Gains from selling qualifying shares (≥2 years of ownership, ≥5% participation) are 88% exempt from tax.
- Only 12% of the gain is taxed at the corporate rate.
- VAT and other taxes:
Pure holding companies (that only hold shares) are generally not VAT-registered, while mixed holdings (that invoice services to subsidiaries) must register and collect VAT.- They are also subject to CFE (local business tax) but exempt from CVAE, abolished in 2024.
These mechanisms make the holding company a preferred structure for tax-efficient investment and group management.
- Corporate income tax (Impôt sur les sociétés – IS)
How is the manager or president of a holding company taxed and protected?
The manager’s tax and social status depends on the company’s legal form:
- SAS or SASU holding company:
- The president is treated as an assimilé salarié (employee-equivalent).
- Social contributions align with the general regime (excluding unemployment).
- Tax: remuneration is deductible from corporate profits and taxed as salary income.
- SARL or EURL holding company:
- The gérant majoritaire (majority manager) is subject to the self-employed (TNS) regime.
- Social charges are lower but coverage is limited.
- The gérant minoritaire or non-shareholder is an assimilated employee.
- Foreign-resident managers:
- If they live abroad, French social charges may not apply, depending on EU regulations or bilateral agreements (proof via A1 certificate).
- If they live abroad, French social charges may not apply, depending on EU regulations or bilateral agreements (proof via A1 certificate).
In essence: the choice between SAS and SARL structures affects both the manager’s social coverage and the company’s deductible expenses.
What are the legal and accounting obligations of a holding company in France?
All holding companies are subject to the same obligations as other French commercial entities:
- Annual accounts: preparation, approval, and filing with the RCS.
- Beneficial ownership declaration (RBE): mandatory within 15 days of registration.
- Publication: legal announcement upon incorporation, and when any major changes occur.
- Corporate tax returns: annual declaration of profits and supporting schedules.
- Group reporting: if the holding consolidates subsidiaries, it may need to prepare consolidated accounts under French GAAP or IFRS.
Failing to comply can lead to fines, late-filing penalties, or rejection of tax advantages (e.g., parent-subsidiary relief).
What are the advantages of a holding company over direct shareholding?
Aspect | Direct Ownership | Through Holding Company |
Tax on dividends | Fully taxable at 30% flat tax | 95% exemption under parent-subsidiary regime |
Asset protection | All shares held personally | Liability limited to holding’s capital |
Governance | Separate management per company | Centralized decision-making |
Succession planning | Complex transfer to heirs | Easy transfer via holding shares |
Financing | Each company borrows separately | Group leverage and upstream loans possible |
A holding structure thus simplifies governance, optimizes taxation, and facilitates long-term investment strategy.
How does a French holding company compare with a simple investment company?
Aspect | Holding Company | Investment Company (Société de portefeuille) |
Purpose | Control and manage subsidiaries | Passive ownership of financial assets |
Tax regime | Parent-subsidiary regime, capital gains relief | Ordinary corporate tax, no special exemptions |
Management | Strategic, may invoice services | Purely financial, cannot provide management |
Substance | Must have real activity (strategic or administrative) | Often considered passive, risk of requalification |
Ideal for | Groups, entrepreneurs, family offices | Financial investors, asset managers |
A true holding animatrice (active holding) enjoys additional advantages — such as wealth-tax exemptions and eligibility for business succession schemes (pacte Dutreil).
Can a French holding company own both French and foreign subsidiaries?
Yes. A French holding company can control subsidiaries established anywhere in the world. It can hold shares in French entities, EU companies, or non-EU corporations without restriction.
However, cross-border shareholding must comply with international tax treaties and reporting obligations (for example, disclosure of foreign participations to the French tax administration).
When properly structured, this setup allows for optimized dividend flow, easier group financing, and centralized governance — while maintaining tax efficiency under the régime mère-fille or applicable treaty benefits.
Does a French holding company need real activity or employees?
Not necessarily, but it must have a genuine management role to qualify as an active holding (holding animatrice) and benefit from certain tax advantages.
This means the company should participate in the strategic, financial, or administrative management of its subsidiaries — for example, by providing coordination, legal, or accounting services.
A purely passive holding that only owns shares without involvement may still operate legally but could lose access to favorable tax regimes or inheritance reliefs such as the pacte Dutreil.
In practice, maintaining basic substance (a registered office, French bank account, and professional oversight) helps demonstrate legitimacy and protect tax status.
Incorporate Your French Holding Company
Let our French lawyers and paralegals handle the legal and tax formalities so your structure is ready to operate with confidence.
More About Incorporating a Holding Company in France
Can a non-resident create and manage a French holding company?
Yes. Both EU and non-EU residents can incorporate and manage a French holding company. There is no nationality or residency restriction for shareholders or directors, provided the company is properly registered with the French Trade Registry (RCS).
What documents are required to form a holding company?
You’ll need the company’s articles of association, proof of registered address, shareholder and manager IDs, share capital certificate, and a declaration of ultimate beneficial owners (RBE). Additional documents may apply if a parent entity or foreign shareholder is involved.
How long does the incorporation process take?
Typically, around 7 to 10 business days from receipt of all documents. This includes the drafting, capital deposit, registration, and issuance of the Kbis extract (the official company certificate).
Can I incorporate my holding company remotely?
Yes. The entire process can be completed online through power of attorney. Our lawyers handle filings, signature formalities, and registry communication on your behalf, so physical presence in France is not required.
Is there a minimum share capital requirement?
No statutory minimum applies. You may legally start with €1, but in practice, a higher capital (often between €1,000 and €10,000) is recommended to establish credibility with banks and authorities.
Do I need a statutory auditor for a holding company?
An auditor is required only if the company exceeds two of the following: €4 million turnover, €8 million balance sheet, or 50 employees. Many holding companies remain below these thresholds and are exempt.
What are the main tax benefits of a French holding company?
A French holding benefits from the parent-subsidiary regime, where 95% of dividends from subsidiaries are tax-exempt, and capital gains on share disposals may be up to 88% exempt. This makes it a preferred structure for group investments.
How is the manager of a holding company taxed?
If the company is a SAS, the president is taxed as an employee. In a SARL, the majority manager falls under the self-employed regime. Non-resident managers may avoid French social charges depending on international agreements.
