A practical scenario: a Vietnamese fashion company wants a Paris branch. It hears French incorporation needs just “1 euro” — then learns: Paris offices, French accountants, mandatory insurance cost multiples of the capital. In France, 1-euro capital is real — but operating costs are the story.
1. Vietnam: 3–5 days, “zero” capital — but IRC for foreign capital
Under Enterprise Law 2020 (59/2020/QH14): LLCs and joint-stock companies dominate; no minimum charter capital (except conditional sectors); ERC in 3–5 days. French investors need an IRC first (Decree 96/2026/ND-CP) — adding weeks; 3–6 weeks total. Upside: low formation and operating costs, near Vietnamese supply chains.
2. France: 1-euro SAS — but a costly ecosystem
France’s go-to vehicle for foreign subsidiaries is the SAS (société par actions simplifiée — simplified joint-stock company) — governance-flexible; the SARL (LLC) for smaller scale. Both need just EUR 1 minimum capital. Procedure: draft articles, deposit capital, RCS registration (Registre du commerce et des sociétés — trade and companies register) — 2–4 weeks. But real costs: a French accountant (expert-comptable — near-mandatory), social charges for directors (high charges sociales), offices (Paris is pricey). Tax: ~25% IS plus contributions — check current rates. Forming a 1-euro SAS is easy — feeding it costs.
3. A quick comparison
- Minimum capital: Vietnam “zero” vs France EUR 1 — neither is a capital barrier.
- Time: Vietnam 3–5 days (ERC) + weeks (IRC); France 2–4 weeks (RCS).
- Operating costs: Vietnam low; France high (accounting, social charges, offices).
- Tax: Vietnam 20%/15%/17% CIT (Law 67/2025); France ~25% IS plus contributions.
- Labor: France — strict Code du travail, hard dismissals; Vietnam — 2019 Labor Code also strict but cheaper.
- Popular formula: Vietnamese company (manufacturing) + French SAS (EU distribution, branding).
Choose incorporation by strategy — not by gut
This article is general information. Each project needs its own structure. FLAT Law Firm supports company formation in Vietnam. Contact us for advice.
This article is general information only and does not replace legal advice for any specific case. Regulations may change; please check the current texts.
Frequently asked questions
1. How much capital for a French SAS?
EUR 1 minimum — but operating costs (accounting, insurance, offices) are the real expense.
2. What is SAS?
Société par actions simplifiée — France’s simplified joint-stock company, governance-flexible.
3. What is RCS?
Registre du commerce et des sociétés — France’s trade and companies register.
4. What is French CIT?
~25% IS plus contributions — check current rates.
5. Where should we incorporate?
By strategy — popular: Vietnamese company (manufacturing) + French SAS (EU distribution).
This article is pending review by the QA Council.
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