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Source : Cour de cassation – Base Open Data « Judilibre » & « Légifrance ».

Barreau de Paris Immobilier, sociétés, affaires Fiche CNB avocat.fr
Maître Reda KOHEN, avocat au Barreau de Paris
Maître Reda KOHEN
Avocat au Barreau de Paris

You Own a French Company From Abroad: Declare Your Beneficial Owners, Update the Register on Time and Avoid the EUR 200,000 Fine

You live in London, New York, Dubai or Singapore and you own a French company, alone or with partners, directly or through a foreign holding company. The company is incorporated, it has a registered office and a bank account, and business is running. Then a letter arrives from the registry, or your French bank freezes a routine operation and asks for an updated beneficial ownership declaration, or a notary blocks a transaction until the register is fixed. In France, every company must identify the flesh-and-blood individuals who ultimately own or control it, declare them to the trade register, and update that declaration within thirty days of any change. The register is called the registre des bénéficiaires effectifs, the RBE, and missing the filing exposes the company to a criminal fine of 200,000 euros. This article explains, for a founder or group running a French company from abroad, who counts as a beneficial owner in a cross-border chain, how to file and update the declaration through the single online portal, who can see your personal data, and what happens when the filing is missing or wrong.

I. Who counts as a beneficial owner of your French company and how to declare them from abroad

French anti-money-laundering law does not look at the name on the share certificates. It looks through every layer of the ownership chain, including companies seated outside France, until it finds the natural persons at the end of the chain. When you control a French SAS (société par actions simplifiée, the flexible joint-stock company most foreign founders choose) or a SARL (société à responsabilité limitée, the limited liability company) through a British limited company, an American LLC or a Dubai holding, the declared beneficial owner is you personally, not the intermediate vehicle. Understanding the legal test before filing saves the most common error foreign groups make: declaring the foreign parent company and believing the duty is done.

A. The 25 percent test, indirect control through a foreign chain, and the fallback to the legal representative

The statute starts with a short definition. Article L. 561-2-2 of the Monetary and Financial Code provides that “le bénéficiaire effectif est la ou les personnes physiques : 1° Soit qui contrôlent en dernier lieu, directement ou indirectement, le client ; 2° Soit pour laquelle une opération est exécutée ou une activité exercée.” Two points matter for a foreign owner. First, only a natural person can be a beneficial owner: neither your foreign holding company nor a trust-like arrangement can fill the box. Second, control is assessed “en dernier lieu”, at the end of the chain, directly or indirectly, so interposing one or several foreign entities changes nothing.

The implementing decree sets the measurable threshold. Article R. 561-1 of the same code provides that, where the client is a company, the beneficial owner means “la ou les personnes physiques qui soit détiennent, directement ou indirectement, plus de 25 % du capital ou des droits de vote de la société, soit exercent, par tout autre moyen, un pouvoir de contrôle sur la société au sens des 3° et 4° du I de l’article L. 233-3 du code de commerce”. In practice, you run two tests. The arithmetic test asks whether a natural person holds, alone, more than 25 percent of the capital or of the voting rights, counting indirect holdings by multiplication along the chain: 60 percent of a holding that owns 50 percent of the French company equals 30 percent indirect, which crosses the line. The control test catches everything the arithmetic misses: the right to appoint or remove most of the managers, a shareholders’ agreement giving veto or direction rights, or de facto dominant influence within the meaning of Article L. 233-3 of the Commercial Code. A founder who holds only 20 percent of the capital but appoints the president of the SAS is a beneficial owner through control, and must be declared as such with the nature of that control described.

When no natural person can be identified under either test, and the bank or professional applying vigilance measures has no suspicion of money laundering or terrorist financing, the law designates a fallback: the beneficial owner is the legal representative of the company, meaning the gérant of a SARL or the président of a SAS, and where that representative is itself a legal entity, the natural person or persons who legally represent it. The official service-public portal states the rule plainly: where none of these tests identifies anyone, the beneficial owner is the legal representative of the business, such as the manager or president, and where that representative is itself a legal entity, the natural persons who legally represent it. The fallback is a last resort, not a convenience. Declaring the Paris-based manager as the beneficial owner while the true economic owner sits abroad, when the 25 percent or control test is in fact met, is an incomplete or inaccurate declaration, and it carries the same penalty as no declaration at all.

A worked example shows how the arithmetic test catches owners who believe they are hidden. Suppose a founder in Dubai holds 70 percent of a holding company in London, which holds 40 percent of the French SAS, while a co-founder in New York holds the remaining 30 percent of the holding and the French company directly issues the balance of its capital to a local partner. The Dubai founder’s indirect stake is 70 percent of 40 percent, i.e. 28 percent, above the line. The New York co-founder’s indirect stake is 30 percent of 40 percent, i.e. 12 percent, below the arithmetic line, but if the shareholders’ agreement gives that person a veto over the budget and the appointment of the president, the control test brings them back into the declaration. The local partner’s direct stake is assessed on its own. Each of these three analyses must appear in the file with its percentage or its control mechanism, and the date on which each position began. Where voting rights differ from capital rights, preference shares without voting rights or double voting rights under loyalty clauses, the two percentages are computed separately and either one crossing 25 percent is enough.

The duty to obtain and keep these details sits with the company itself. Article L. 561-45-1 of the Monetary and Financial Code requires companies established in France to obtain and keep exact and up-to-date information on their beneficial owners, and to hand it to the persons subject to anti-money-laundering vigilance, banks, notaries and lawyers, when those professionals run their checks. Only companies whose shares are admitted to trading on a regulated market in France or in another State party to the European Economic Area agreement, or which are subject to equivalent transparency duties, escape the declaration. A family holding in Delaware, a free-zone company in the Emirates or an unlisted British group never qualifies for that exemption, however large or reputable the group. Branches are not forgotten either: the service-public portal confirms that commercial companies with their registered office abroad but with an establishment in France fall within the declaration duty, so a succursale registered in France declares the natural persons who control the foreign head office. Founders still hesitating between vehicles should read our guide to choosing between a SAS, a SARL, a branch and a subsidiary before filing, because the vehicle determines who signs the declaration and which chain must be traced.

B. Filing at incorporation and the thirty-day update rule through the single portal

The declaration is made to the clerk of the commercial court, the greffe du tribunal de commerce, for entry in the trade and companies register, the RCS (registre du commerce et des sociétés), through the single online body that centralises all business formalities since the reform of the formalities portal. Article R. 561-55 of the Monetary and Financial Code states that “Les informations relatives aux bénéficiaires effectifs mentionnées au premier alinéa de l’article L. 561-46 sont déclarées au greffe du tribunal de commerce lors de la demande d’immatriculation au registre du commerce et des sociétés présentée par la société ou l’entité immatriculée par l’intermédiaire de l’organisme unique mentionné à l’ article R. 123-1 du code de commerce . La société ou l’entité immatriculée demande une inscription modificative dans les trente jours suivant tout fait ou acte rendant nécessaire la rectification ou le complément des informations déclarées.”. For a founder abroad, this means the beneficial ownership section is completed inside the same online file as the incorporation itself, on the INPI single portal (guichet unique), and the register entry feeds the Kbis extract, the official company identity card issued by the clerk. If the registered office itself is still being arranged, see our guide on how to prove the registered office and obtain the Kbis from abroad, because a file with an uncertain address slows every later step including this one.

The same article imposes the deadline that foreign owners most often miss. Thirty days run from any fact or act that makes a correction or addition necessary: a new shareholder crossing 25 percent, a shareholders’ agreement granting control, a change of the beneficial owner’s home address after a move abroad, a change of name after marriage, a new passport and nationality detail, or the replacement of the fallback legal representative. The portal’s company formalities desk processes the amending filing entirely online, signed by the company’s agent such as the manager or president, and the service-public portal currently quotes a fee of 19.33 euros at registration and 35.36 euros for an amending filing. These are registry fees, modest in themselves; the cost of forgetting them is in the next part of this article.

Filers abroad should prepare for the documentary friction that surrounds foreign elements. The portal accepts the filing online from anywhere, but the clerk can ask for evidence behind the percentages, and vigilant professionals routinely ask for a sworn French translation of foreign articles of association, share registers and voting agreements, plus proof of identity matching the transliterated names. Powers of attorney deserve attention: where a Paris-based agent files for the foreign owner, the mandate should expressly cover the beneficial ownership declaration and its later updates, because a general incorporation mandate signed years earlier does not always satisfy the clerk for a corrective filing. Finally, align the register with reality before requesting anything from it: asking the bank for a loan or the notary for a deed while the declared address or the declared control no longer matches the file turns a routine request into a vigilance alert.

The content of the filing is fixed by decree and leaves no room for approximation. Article R. 561-56 of the Monetary and Financial Code lists, for the company, its name, legal form, registered office address and RCS number, and for each beneficial owner “a) Les nom, nom d’usage, pseudonyme, prénoms, date et lieu de naissance, nationalité, adresse personnelle de la ou des personnes physiques ; b) La nature et les modalités du contrôle exercé sur la société ou l’entité juridique mentionnée au 1°, déterminées conformément aux articles R. 561-1 , R. 561-2 ou R. 561-3 , ainsi que l’étendue de ce contrôle ; c) La date à laquelle la ou les personnes physiques sont devenues le bénéficiaire effectif de la société ou de l’entité juridique mentionnée au 1°.”. A founder living abroad therefore declares a foreign home address, each nationality held, and the exact date on which beneficial ownership began, typically the date the shares were acquired or the control agreement took effect. For each owner the type of control must be specified, and where control rests on holding more than 25 percent of the capital or the voting rights, the percentage of capital and voting rights must be stated. Three practical checks follow. First, transliterate names exactly as on the passport, because a mismatch between the register and the bank’s know-your-customer file triggers requests for correction. Second, describe indirect control in words, for example 60 percent of a London holding company which itself holds 50 percent of the French SAS, i.e. 30 percent indirect, plus the right to appoint the president granted by the articles of association, rather than leaving the clerk to guess. Third, keep the supporting chain, foreign share registers, translated articles, voting agreements, in the company’s records: the company must hold exact and up-to-date information at all times, not only on the day it files.

II. Who can see your personal data, and what a missing or wrong filing costs you

Foreign founders ask two symmetrical questions: will my home address in another country become public, and what happens if I file late or leave the register untouched after a change? French law answers both with unusual precision. Consultation of the register is no longer open to the general public, access is tiered, and the contents stay confidential, but the criminal sanction for failing to declare is heavy and the commercial consequences arrive faster than any prosecution, usually at the bank counter.

A. Restricted access to the register: legitimate interest, full-access authorities, and what each reader actually sees

The starting point is that the company declares through the trade register, and the statute organises who may read what. Article L. 561-46 of the Monetary and Financial Code requires the companies concerned to declare to the trade and companies register, through the single body, the identification details and home address of the beneficial owners together with the terms of the control they exercise, then grants free access to all of that information, without restriction, to the judicial authorities, the national financial intelligence unit Tracfin, customs and tax officers acting within their duties, and to the supervised entity itself for the information it declared. Around that core of full access, the decrees build two outer circles. Article R. 561-57 extends full access to named categories acting for their missions, including criminal judges, Tracfin officers, individually designated customs and tax control officers, and comparable European counterparts, while Article R. 561-58 gives the professionals subject to anti-money-laundering vigilance, banks, insurers, notaries, lawyers and accountants, full access provided they have signed a declaration through their legal representative designating their function. That last point explains daily practice: when your French bank asks for the beneficial ownership declaration before opening or unfreezing the account, it is consulting the register under its own statutory access and comparing it with the documents you supplied.

Outside those circles, access requires proof of a legitimate interest in the fight against money laundering or terrorist financing, assessed by reference to the applicant and its relationship with the target company. The service-public portal lists the persons the law names, including a business partner in a relationship with the company where financial transparency is at stake, companies bound by anti-corruption duties, subcontractors of vigilant professionals such as banks, notaries, lawyers and insurers, members of parliament, journalists, non-profit organisations, university researchers, public buyers checking tenderers, and State and local authorities. What these readers obtain is deliberately narrow: surname, name of use, pseudonym, first names, month and year of birth, country of residence and nationality, and the nature and extent of the interest held. Day and place of birth and the full home address stay out of this limited view, and the contents of the register remain confidential, meaning the reader may not pass the identity of the beneficial owners to outsiders, except for journalists, researchers and non-profits where outsiders have an interest in knowing. For a founder abroad, the practical reading is reassuring but not absolute: your street address is not served to every curious reader, yet counterparties, banks and authorities entitled to full access see the complete file, and accuracy across all versions matters because each of these readers compares sources.

B. The 200,000 euro fine, the management ban, and the banking consequences that arrive first

The criminal sanction is written without nuance. Article L. 574-5 of the Monetary and Financial Code provides: “Est puni d’une amende de 200 000 euros le fait de ne pas fournir aux personnes mentionnées à l’ article L. 561-2 , dans le cadre des mesures de vigilance prévues à la section 3 du chapitre Ier du titre VI , ou de ne pas déclarer au registre du commerce et des sociétés ou, le cas échéant, dans un registre mentionné à l’article L. 561-46-1 les informations relatives aux bénéficiaires effectifs requises en application du premier alinéa de l’ article L. 561-46 ou de l’ article L. 561-46-1 , ou de déclarer des informations inexactes ou incomplètes.” Failing to declare, declaring late after a change that made an update compulsory, or declaring inaccurately, declaring the foreign parent instead of the natural person, omitting a second beneficial owner above 25 percent, keeping a former address, describing control wrongly, all fall under the same 200,000 euro fine. Natural persons found guilty face in addition a ban on managing companies under Article 131-27 of the Criminal Code and a partial loss of civil and civic rights, while legal entities face the penalties of Article 131-39. A founder who also manages the French company should weigh this precisely: the same omission can strike the company with the fine and the manager with a personal management ban.

Prosecutions make headlines, but for a company run from abroad the sanction usually arrives earlier and from a different direction. The declaration duty in Article L. 561-45-1 works in both directions: the company must give its beneficial ownership details to the vigilant professionals, and those professionals must collect them before acting. A bank that cannot reconcile the register with the file does not debate the point; it suspends the account opening, freezes the damaged operation, or declines the loan, and the founder learns about the missing thirty-day update through a blocked wire rather than through a court summons. Notaries behave the same way before authenticating a share transfer or a commercial lease, and auditors note the gap. The thirty-day rule therefore functions as operational maintenance: diary the deadline at every capital movement, every new control agreement, every change of manager, and every personal move or status change of a declared owner, and file the amending entry through the single portal before the counterparty discovers the gap. Where the chain passes through foreign entities, attach translations and keep the arithmetic of indirect percentages available, because the first question of every vigilant professional is how the declared individual connects to the French shares.

Two frequent foreign-founder errors deserve explicit warning. The first is believing that a reputable foreign parent makes the declaration unnecessary: unless the French company’s shares are listed on a regulated market or covered by equivalent transparency duties, the exemption does not apply, and an unlisted group, however well known, declares its ultimate natural persons like any family company. The second is treating the filing as a one-time incorporation formality: the statute punishes inaccurate or incomplete information as such, so a register that was correct in 2023 and wrong since a 2025 transfer is a current breach, not an old administrative detail. Both errors are inexpensive to fix through an amending filing and expensive to defend once a bank has closed the file or a prosecutor has opened one.

Conclusion

Running a French company from abroad does not dilute the beneficial ownership duty; it concentrates it on the person furthest from the registry counter. Identify every natural person above 25 percent of capital or voting rights or exercising control by any other means through the whole chain, declare each of them with full identity, home address, nature and extent of control and starting date, file through the single portal at incorporation, and file an amending entry within thirty days of every change. Keep the chain documents and the indirect-ownership arithmetic ready for the bank, the notary and the auditor, because they consult the register under their own statutory access and act on discrepancies immediately. The register is no longer public, your street address is not broadcast, but the fine for silence or inaccuracy reaches 200,000 euros with a possible management ban. Thirty days and a careful form stand between your French company and that risk.

Source : Cour de cassation – Base Open Data « Judilibre » & « Légifrance ».

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