Curated resources and checklists
This page brings together practical checklists and quick-reference material to help you approach holding company topics with a clear head, whether you are weighing whether to form one or reviewing an existing structure. Instead of scattered advice, you get step-by-step lists you can work through and concrete facts you can rely on. Use these alongside our detailed guides to move from general curiosity to informed decisions.
Holding Company Setup Checklist
- Define the purpose of the holding: passive asset ownership, group management, or grouping several operating companies under one roof.
- Choose the legal form that fits your goals — most French holdings use an SAS or SARL, so compare governance flexibility against social contribution rules.
- Draft articles of association that explicitly authorise holding activity, share ownership, and any management or financial services to subsidiaries.
- Deposit the share capital in a blocked bank account and obtain the certificate of deposit before registration.
- Publish a legal notice of incorporation (annonce légale) in an authorised journal in the department where the head office is located.
- File the registration dossier with the Guichet Unique (INPI) to obtain the SIREN number and Kbis extract.
- Decide early whether to apply for the parent-subsidiary regime or tax consolidation, as these choices affect your holding structure.
- Set up separate bookkeeping for the holding, distinct from any operating company, to keep intercompany flows traceable.
Holding Structure Review Checklist
- Confirm the holding owns at least 5% of each subsidiary if you intend to use the parent-subsidiary regime on dividends.
- Check that intercompany agreements (management fees, current accounts, loans) are documented and priced at arm's length.
- Verify that dividends flowing up from subsidiaries are correctly qualified and that the 5% fee-and-cost add-back is applied.
- Review whether the group meets the 95% ownership threshold needed for tax consolidation (intégration fiscale).
- Assess whether the holding is 'active' (providing real services) or 'passive', as this affects VAT recovery and certain reliefs.
- Reconcile current account balances between the holding and subsidiaries to avoid deemed distributions.
- Confirm the head office address, Kbis, and beneficial ownership register are all up to date.
- Test your exit scenarios: how shares would be sold and how the long-term capital gains regime on participations would apply.
Quick Reference: Key Facts
- Parent-subsidiary regime: dividends from a qualifying subsidiary are largely exempt, with only a 5% share of fees and costs added back to taxable profit.
- Minimum shareholding for the parent-subsidiary regime is generally 5% of the subsidiary's capital, held for at least two years.
- Tax consolidation (intégration fiscale) requires the parent to hold at least 95% of subsidiaries' capital, allowing group profits and losses to be offset.
- A holding can be 'passive' (only owning shares) or 'active' (also providing management, accounting, or strategic services to its subsidiaries).
- The standard corporate income tax rate in France is 25%, with a reduced 15% rate on the first tranche of profit for eligible SMEs.
- The Kbis extract is the official proof of a company's registration and must reflect any change of directors, address, or capital.
Do I need a holding company just to own shares in one business?
Not necessarily. A single-company owner rarely needs a holding purely to hold shares. Holdings become useful when you plan to group several activities, prepare a future sale, reinvest dividends efficiently, or separate valuable assets from operational risk. If your situation is simple, the added administration may outweigh the benefit.
What is the difference between a holding company and an operating company?
An operating company runs a business day to day — it sells goods or services, employs staff, and generates revenue. A holding company mainly owns shares in other companies and may provide management services to them. Many groups combine both: the holding sits at the top, and one or more operating companies handle the actual trading.
How are dividends between companies taxed in France?
Under the parent-subsidiary regime, dividends paid by a qualifying subsidiary to its holding are almost entirely exempt from corporate tax, with only a 5% portion added back for fees and costs. This is one of the main reasons groups use a holding to move profits upward before reinvestment.
Can a holding company recover VAT?
It depends on whether the holding is active or passive. A purely passive holding that only owns shares generally cannot recover VAT, because holding shares is not a taxable activity. An active holding that charges its subsidiaries for real management or support services can usually recover VAT tied to those taxable operations.
How long does it take to set up a holding company in France?
Once your articles of association are drafted and the capital is deposited, registration through the Guichet Unique often takes a few days to a couple of weeks, depending on the completeness of your dossier. The preparation — deciding on legal form, drafting statutes, and choosing tax options — usually takes longer than the registration itself.
Are there real risks to using a holding structure?
Yes. Poorly documented intercompany loans or current accounts can be reclassified as hidden distributions, transfer pricing between related companies must be defensible, and the extra layer adds accounting and compliance costs. A holding should solve a concrete problem — not exist for its own sake.