Legal Counsel for Foreign Companies Operating in France

A foreign company setting up in France soon finds that French business law does not look like the law of its parent. Payment terms capped by statute, notice owed to the supplier you leave, a nine-year commercial lease you cannot walk away from like an English lease: the surprises are expensive because they come after signature.

The firm advises French subsidiaries and branches of foreign groups in their day-to-day life in France: contracts, dealings with suppliers and customers, the lease, regulatory questions. It works in English and French, with local management and with the group legal team.

What French law imposes, and groups often overlook

Three rules keep coming back. Payment terms first: sixty days from the invoice, or forty-five days end of month (article L. 441-10 of the Commercial Code), with late-payment interest due without any reminder. A ninety-day payment policy decided at headquarters is simply unlawful in France. Ending a commercial relationship next: article L. 442-1 requires written notice reflecting the length of the relationship, capped at eighteen months where its length is disputed. The commercial lease last, with a minimum term of nine years, a right to renewal and an eviction indemnity that surprise tenants used to other systems.

At entry, some deals fall under foreign investment control: in sensitive sectors, article L. 151-3 of the Monetary and Financial Code requires prior authorisation. Better to check before closing.

French law is not more hostile than any other. It is simply more mandatory than people expect.

What the engagement covers

Review and adaptation of group documents to French law (terms and conditions, supplier and distributor contracts, confidentiality agreements), negotiation and follow-up of the lease, answers to local management’s everyday questions, handling of difficulties with a partner before they turn into disputes. Where the set-up itself is being prepared, the firm helps you choose between a branch and a subsidiary.

How the firm works

A first review of the group documents used in France shows what must be adapted first. The fee agreement then sets the scope, the fees and the contacts. Exchanges take place in the group’s language, English or French.

Typical matters

A ninety-day payment policy imposed by headquarters

The firm explains to the group why the rule cannot apply in France, then adapts the purchase terms and supplier contracts to stay within the statutory limits.

A long-standing supplier to be replaced

The relationship has lasted eight years. The firm calibrates the notice, drafts the termination letter and organises the transition so that the change of supplier does not end in a judgment for abrupt termination.

An Asian investor in a sensitive sector

Before signing, the firm checks whether the target’s business falls under foreign investment control and, where it does, builds the authorisation into the timetable and conditions precedent. See also the page on Chinese investment in France.

Further reading

Specialised services: abrupt termination of commercial relationships, debt recovery, business acquisitions. See also outside corporate counsel.

Frequently Asked Questions

Does investing in France require authorisation?

Only in sensitive sectors defined by the Monetary and Financial Code (defence, energy, health and critical technologies among others), above certain ownership thresholds. Article L. 151-3 subjects these investments to prior authorisation by the Minister for the Economy; completing them without it exposes the investor to penalties and to an order to unwind.

Branch or subsidiary: which to choose?

A branch has no legal personality: the foreign company is liable for its commitments with all its assets. A subsidiary ring-fences the French risk, at the cost of its own governance. The choice depends on the business, the risk and the group’s tax position.

What payment terms apply to a French company?

Between businesses, sixty days from the invoice date, or forty-five days end of month if expressly agreed (article L. 441-10 of the Commercial Code). Late-payment interest and the flat 40 euro recovery indemnity are due automatically.

Can a French supplier be dropped without notice?

Not if the relationship is established. Article L. 442-1 of the Commercial Code penalises abrupt termination without sufficient written notice, and the Act of 18 August 2026 added a substantial reduction in order volumes during a negotiation.

Can the firm work directly with the parent company?

Yes, in English, with the group legal team as well as local management. It is often the most efficient format: the group keeps control, the firm brings French law.