Information only – does not replace tailored legal advice.
Since the United Kingdom left the EU, operating after Brexit as a UK company in France demands adaptation to a brand-new tax, social and customs landscape. With careful planning, a British company setup can still tap into France’s innovation ecosystem, generous incentives and gateway to EU markets. This guide outlines the key obligations and opportunities to help you secure a compliant, sustainable presence.
Understand the post-Brexit framework
Which structure should you choose?
- Branch – secondary establishment without legal personality; must be entered in the French Trade and Companies Register (RCS).
- French subsidiary (SARL, SAS, etc.) – separate legal entity with stronger legal and tax protection but heavier formalities.
- Occasional cross-border services – possible without a permanent establishment, provided VAT and labour rules are respected.
Taxation: what changed
- Withholding tax now applies to dividends, interest and royalties unless reduced by the UK–France tax treaty.
- Double taxation risks call for clear evidence of tax residence and economic substance.
- Transfer pricing documentation must meet French standards for intra-group transactions.
VAT & customs: acting as an importer again
- Customs declarations are mandatory for every import/export.
- A French VAT number is required when selling to French clients or storing goods; a fiscal representative is often needed.
- Invoicing and VAT recovery rules vary depending on whether the customer is a business or consumer.
Mobility of British employees
- Visas, work permits and prior posting notifications are compulsory.
- Compliance with French labour rules on pay, working time and social protection is essential.
Data transfers & intellectual property
- Transfers of personal data UK → FR must rely on GDPR-compliant safeguards (SCCs, BCRs).
- Check that trademarks, patents and copyrights are duly protected in France.
Opportunities & best practices
- Research tax credit and Patent Box bolster R&D investment.
- France’s location supports access to EU and francophone African markets.
- Engage local advisers early to reduce non-compliance risks in tax, labour and customs matters.
Conclusion
Choosing the right structure, anticipating tax impacts and VAT formalities, and managing talent mobility are all vital for a UK company in France to turn the Brexit challenge into a lasting opportunity.
