When a company wants to expand internationally, it can sell goods or services in a foreigner country without having a physical presence there.

Before starting, it is important to find out about the rules that apply to these exchanges.The rules that apply to these exchanges are different if the customer is located in a European country or not.

Purchases or sales made within the European Union are referred to as intra-Community acquisitions or intra-Community supplies. These exchanges are subject to special VAT rules. On the other hand, no customs duty applies on such trade.

To learn more about the rules applicable to European trade, you can consult our factsheets on trade in goods and provision of services within the European Union.

When purchases and sales are made in non-European countries, specific VAT rules apply. Such trade may also be subject to customs duties. However, if a free trade agreement has been signed by that country with the European Union, then there is no customs duty.

A company wishing to expand internationally may decide to set up an establishment in the country in which it wishes to expand.

Depending on the rules applicable to European or international trade, it may be advantageous for a company to set up a structure in a foreigner country. This may be the case if the country's customs duties are very high or if the country's tax system is favorable.

It may thus decide to open a branch or subsidiary. These are two completely different institutions to which specific rules apply.

To learn more about what is a branch office or a subsidiary, you can consult the dedicated sheets on the website of Bpifrance creation.

Another solution would be to work with a partner on the spot by setting up a joint venture (or joint venture) or a European Economic Interest Grouping (EEIG).

The joint venture involves the development of a collaboration contract between two or more companies to develop a common approach. If a company wants to expand in another country and take over a new market, it can then decide to collaborate with a company located in that country.

The European Economic Interest Grouping (EEIG) enables economic activities to be developed through the pooling of services (e.g. research and development, production, sales, training). Companies wishing to collaborate shall jointly set up a body with a legal capacity distinct from that of its members. Thus, if a company wishes to develop in a European country, it can set up an EEIG with one or more companies located in the country in question.

To learn more about the joint venture or the european economic interest grouping, you can consult the dedicated sheets on the website of Bpifrance creation.

Several interlocutors help companies in their international development projects.

Business France

It is a public body responsible for the international development of French companies. It assists companies in their efforts and offers them support adapted to their needs. It may also grant financial aid.

Team France Export

This site directs companies looking to expand internationally to the most appropriate contacts to help them according to their project. You can find the aid and support offered by the regions, the State services, CCI France, and many others.

Chamber of Commerce and Industry (CCI) France international

The CCI offers French companies a help service to establish themselves in a foreigners market.

Directorate General of Customs and Indirect Taxes (DGDDI)

The Directorate-General for Customs and Indirect Taxes offers companies the opportunity to help them better understand and understand export-related approaches and concepts. It offers to help the entrepreneur and advise him to complete his customs declarations.

Bpifrance

Bpifrance is a public investment bank that supports companies in their business opportunity, including internationally.

It offers a range of tailor-made solutions for export projects. These may be insurance, funding or various forms of support.