|
Incorporation in the USA |
| How to use a corporate | Tax system | VAT | US wage status |
IN FRANCE
A US corporation can be used as a holding or directly run its business.
Recognised by the La Haye Convention, it can buy, sell, invoice or cash any market in France.
It is a US legal entity, its tax system will depend on its State of incorporation.
Registration in France
A US corporation is duly authorised to run its
business directly BUT can meet with a great deal of red tape. 
E.g. : impossible to have a fax or phone number without a French "Siret" or Kbis".
therefore, for direct use, it may be advisable to register a US corporation in France as,althought remaining a US legal entity,
it will assigned a "Kbis", "Siret", "APE code", without the incorporation of a new firm - a French legal entity.
It will be a considered as a French "S.E.I." (Société Etrangère Immatriculée en France : Foreign company registered in France)
It is usually called "Bureau de Représentation" (Representative Office).

A US corporation registered in France will be able to act as a French entity (selling, buying, renting offices, having phone number, renting material, buying cars, French vehicle registration document, etc...) whilst remaining a US company.
Since it will not be a French legal entity, there is neither Manager not executive but a "Legal representative".
The Representative Office will have to pay French "Professional Tax".
Direct use with a representative office is the best solution for consultants or service providers.
If the activity is trade, it would be better for the US Corporation to act as a Holding.