In general, foreign investment in France is unrestricted. However, a prior declaration is required for administrative or statistical purposes since March 2003. The objective of this declaration is to check if an investment requires or not a prior authorization of the national authorities.

A decree of the French government of March 17, 2003 states that direct investments which are concerned by this declaration are:

• Acquisition of 10% or more of the equity or voting rights in a resident company – or when equity or voting rights in the company rise above 10% threshold, if the amount of these transactions exceeds €1.5 million. This type of investment is subject to a declaration filed with the Banque de France.
• Declarations filed with the Ministry of Economy and Finance (Treasury Directorate):
  • Creation of a new company by a foreign investor if the amount of the investment exceeds €1.5 million
  • Acquisition of all or part of a business line of a French company
  • Acquisition of a direct or indirect equity interest in a French company amounting to more than 33.33% of its share or voting rights.

Other transactions concerned by the declaration are: the granting of credit or guaranties, acquisition of patents and licenses, acquisition of commercial agreements or technical assistance which leads to a substantial control of a French company.

The declaration is sent when the transaction is carried out by the parties (article R.152-5 French monetary and financial code).

Failure to comply with the obligation of administrative declaration leads to a fine of €750.