France to India: questions French companies ask

A subsidiary lets dividends use the French parent-subsidiary regime for qualifying holdings. Branches are less common because their profits enter the French company's own position.

French parents provide a Kbis extract under three months old, certified statuts and a resolution. Signature and bank calls fit a French morning.

France and India are both Apostille Convention parties, so French documents need an apostille, not consular legalisation. Every French-language document needs a sworn English translation.

French groups often post a VIE or expatriate manager to India who can meet the 182-day test.

French-side costs include the notary, apostille and sworn translation of the statuts and resolutions.

French documents usually take two to three weeks; translation is the main variable.

Euro remittances are converted on receipt; fix the number of shares against the rupee amount credited.

The French parent's own valuation for its accounts is separate from the FEMA certificate.

The 1992 India–France convention caps dividends, interest, royalties and technical fees at 10%. A protocol signed in February 2026 would set dividends at 5% or 15% and add a services PE, once ratified.

France relieves Indian tax by credit, and qualifying holdings use the parent-subsidiary regime for dividends.

French documentation rules apply above group thresholds; keep the French master file and Indian local file consistent.

Today's treaty uses fixed place and site PE rules; the pending protocol would add a services PE.

The French parent manages parent-subsidiary and CFC conditions, French transfer pricing and, for large groups, Sapin II and vigilance reporting.

Most French parents close on 31 December, so the Indian year needs a reporting bridge.

French employment concepts do not carry over; Indian contracts follow the labour codes.

The India–France social security agreement, in force since 2009, keeps detached employees in French social security for a limited period with a certificate of coverage.

French staff moving to India need an employment visa and FRRO registration for long stays.

GDPR transfers to India need SCCs or BCRs and a transfer impact assessment; the CNIL supervises the French side.

French judgments need a fresh suit in India; ICC awards seated in Paris are enforceable. Sapin II requires anti-corruption programmes that reach Indian subsidiaries.

French investors concentrate in aerospace, luxury, agri-food and energy. The EU–India agreement is concluded but not yet in force.

French groups run engineering and finance centres in India; IP assignment to the French parent should be explicit.

The pending protocol would give India taxing rights on share gains, so exit timing may matter.