UK companies in France: post-Brexit obligations

This article is for informational purposes only and does not constitute personalized legal advice.

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Since the United Kingdom's departure from the European Union, operating after Brexit requires any UK company in France to adapt to a new tax, social, and customs framework. With proper preparation, establishing a British company can, however, leverage competitive advantages: an innovation ecosystem, tax incentives, and access to the European market. Here is an overview of the key points to secure your expansion.

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Understanding the new post-Brexit framework

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Which structure should you choose?

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• Branch : a secondary establishment without a separate legal personality; registration with the Trade and Companies Register (RCS) is mandatory.
• French subsidiary (SARL, SAS, etc.) : a separate legal entity, offering better protection but requiring more extensive formalities.
• Occasional service provision : possible without a permanent establishment, provided that VAT rules and labor laws are respected.

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Taxation: what’s changing

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• Withholding tax : dividends, interest, and royalties are now subject to withholding tax, unless a tax treaty applies.
• Double taxation : document tax residency and economic substance to avoid audits.
• Transfer pricing : enhanced documentation required for intra-group flows.

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VAT & customs: becoming an importer again

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• Mandatory customs declarations for every import/export.
• French VAT number : required for sales or storage in France; a tax representative must be appointed.
• Invoicing rules vary depending on the customer type (B2B/B2C).

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Mobility of UK employees

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• Visas, work permits, and secondment declarations are now required.
• Compliance with French standards: minimum wage, working hours, and social security.

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Personal data & intellectual property

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• UK to FR data transfer compliant with GDPR (standard contractual clauses, BCRs, etc.).
• Verify the scope of trademarks, patents, and copyrights in France.

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Opportunities and best practices

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• Research tax credit and Patent Box to support innovation.
• France's strategic position for reaching the EU and French-speaking Africa.
• Work with local advisors to minimize non-compliance risks (tax, labor, customs).

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Conclusion

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Choosing the right structure, anticipating tax impacts and VAT formalities, and securing talent mobility: all essential steps for a UK company in France turns the Brexit challenge into a sustainable opportunity.