How to structure your holding company in France

The holding + operating company (opco) structure is one of the most common setups for French entrepreneurs who are serious about building long-term. It is not complicated, but it requires understanding what it is actually for.

The basic structure

You create a holding company (typically an SAS or SARL) that owns shares in one or more operating companies. The operating company is where the actual business runs — employees, contracts, revenue. The holding company is where you accumulate wealth and make investment decisions.

Why it makes sense

The main benefit is tax efficiency. When the opco pays dividends up to the holding, those dividends benefit from the parent-subsidiary regime, which reduces the effective tax rate to near zero. You can then redeploy that capital into other investments without it being taxed as personal income.

It also creates a clean separation between your personal assets and your business risk. If the opco runs into trouble, the holding — and your other assets — are protected.

What it costs

Setting up the structure costs between 1,500 and 3,000 euros in accounting and legal fees, depending on complexity. Ongoing costs include accounting for both entities, which adds roughly 2,000 to 4,000 euros per year.

It is worth it if you are generating meaningful profit in your opco and want to reinvest efficiently. It is probably not worth it in the very early stages when you are pre-revenue.

When to set it up

The best time to set up the holding is before you start generating significant profit, and before any fundraising. Once investors are on the cap table, restructuring becomes more complex. If you are planning to raise or to bring in partners, do it first.