How to Open a French Subsidiary as a SaaS Startup
Expanding to Europe is a strategic milestone for many SaaS companies. France, with its thriving tech ecosystem, strong talent pool, and central EU location, has become one of the most attractive destinations for foreign startups. But setting up a subsidiary in France requires navigating legal, administrative, and operational challenges. This guide breaks down the entire process step by step, showing you what to expect and how to accelerate your launch.
Why France for SaaS Expansion?
Before diving into the mechanics, it’s worth clarifying why France has become a hotspot for SaaS expansion:
Large domestic market: 67 million consumers, with Paris as one of Europe’s top startup hubs.
Access to EU clients: As part of the EU single market, France gives you immediate access to 400+ million consumers without trade barriers.
Deep talent pool: Skilled engineers, product managers, and sales professionals, many bilingual in English.
Government support: Strong incentives for R&D, innovation, and foreign investors (CIR, JEI).
Fintech and SaaS growth: Global companies like Snowflake, Stripe, and Datadog have expanded rapidly in Paris.
Step 1: Choose the Right Legal Structure
Foreign startups typically consider three main options:
Branch office (succursale)
Simple extension of the parent company.
Not legally independent.
Quick to set up but limited credibility.
SAS (Société par Actions Simplifiée)
Most common for startups.
Flexible governance, limited liability.
Attractive for investors.
Can be 100% foreign-owned.
SARL (Société à Responsabilité Limitée)
More rigid, better for small family-owned businesses.
Rarely chosen by startups.
Recommendation for SaaS: go with SAS. It provides flexibility, scalability, and credibility for clients and investors.
Step 2: Draft the Company Bylaws (Statuts)
The bylaws define how your French entity will operate. They include:
Company name.
Registered office address (you’ll need a domiciliation or local office).
Share capital.
Governance (president, directors, voting rights).
Business activity.
Bylaws must be drafted in French and filed with the Commercial Court.
Step 3: Deposit the Share Capital
To create a SAS, you must deposit share capital into a French bank account or notary’s escrow account.
Minimum required: €1.
Typical for SaaS: €1,000 to €10,000 for credibility.
Proof of deposit is needed to finalize registration.
Challenge: opening a bank account as a foreign founder is difficult. Many banks require in-person presence and strict KYC. Fintechs (Qonto, Shine) can be alternatives, but traditional banks are often necessary if you plan to raise funds.
Step 4: Publish a Legal Notice
French law requires new companies to publish a notice of incorporation in a legal journal (“Journal d’Annonces Légales”).
This announcement includes:
Company name.
Legal form (SAS).
Address.
Share capital.
Management details.
Cost: ~€150.
Step 5: File with the Commercial Court
Once you have:
Drafted bylaws,
Deposited capital,
Published the legal notice,
…you can submit the file to the Greffe du Tribunal de Commerce (Commercial Court).
Documents required:
Signed bylaws.
Proof of address (domiciliation or office lease).
Proof of capital deposit.
Identity documents of the directors.
Legal notice certificate.
Result: You receive a K-Bis extract, which is the official ID of your French company.
Step 6: Register for Taxes and Social Contributions
With your K-Bis, you can now:
Get a VAT number.
Register with URSSAF for payroll/social contributions if you plan to hire.
Open a permanent business bank account.
Step 7: Hire Your First Employees
If your goal is to build a local sales or tech team, you’ll need to comply with French labor law:
Standard contract types: CDI (permanent) or CDD (fixed-term).
Strong employee protections, mandatory benefits (health insurance, paid vacation, retirement contributions).
Employer cost: typically 40–45% above gross salary.
Example: A €50,000 gross salary costs ~€70,000 total to the employer.
Many startups choose to outsource payroll and compliance at the beginning to avoid mistakes.
Step 8: Operational Launch
At this point, your French subsidiary can:
Sign contracts with local clients.
Issue invoices in euros.
Open a local office or coworking space.
Hire a local country manager or sales team.
Timeline
Drafting bylaws: 1 week.
Capital deposit + bank account: 2–4 weeks (can be longer for foreigners).
Legal notice + filing: 1 week.
Registration and K-Bis: 1–2 weeks.
Total: 4–8 weeks depending on bank and administration speed.
Costs
Legal/domiciliation: €500–€1,500.
Notary or lawyer: €1,000–€3,000.
Publication: €150.
Bank account setup: varies.
Total typical cost: €2,000–€5,000 for setup.
Common Pitfalls
Underestimating bank delays. Opening a French bank account can take weeks.
Wrong entity type. Choosing a branch instead of SAS reduces credibility with clients.
Payroll mistakes. French compliance is strict—errors can be costly.
No local presence. Clients prefer dealing with a local entity, not just a “virtual” office.
How morn Helps
morn is the business-first implantation partner for foreign SaaS companies entering France. We don’t just file paperwork—we ensure you can start selling, hiring, and growing from day one.
Our services include:
We’ve helped international SaaS companies launch in France in under 6 weeks, with operations running smoothly from day one.
Conclusion
Opening a French subsidiary as a SaaS startup is an ambitious but rewarding move. With the right structure (SAS), proper setup, and local expertise, you can secure a strong foothold in Europe’s second-largest economy.
Don’t waste months battling French bureaucracy. Focus on growth, and let morn handle the setup.
