Setting up a service company in France

Key considerations

Managing agents wanting to set up a service company in France must be aware of the following considerations and requirements that make up the local environment.

Financial considerations

  • No requirement to maintain trust funds.
  • Service company premium, claims, and general expenses must be deposited in separate bank accounts.
  • Share Capital confirmed and deposited with the bank.
  • Insurance Premium Tax (IPT) applies.
  • Applicability and rate of premium tax are class dependent – more information on Crystal+.
  • Other taxes depend upon the service company and group structure.
  • Insurance companies and intermediaries’ operations are exempt from VAT.
  • Additional parafiscal duties may apply:
    • Natural catastrophe levy
    • Fund for the victims of terrorism
    • National agricultural catastrophe fund
    • National guarantee fund Social security fund
French Tax Law (2024) – Brochure Share Capital Guidance Crystal+

Operational considerations

  • A set business address is a required before Registre National des Enterprise (RNE) registration.
  • Colocation is not mandatory, and is not available in France.
  • Company bylaws (statues) must be drafted, including the determination and deposit of share capital as part of the formation process.
  • Requirements for statutes and share capital are defined by the legal entity structure chosen. For example:
    • SARL: Private Ltd. Company
    • SAS: Simplified joint-stock company
    • SA: Public Limited Company
  • Business creations must be publicly announced via a formal creation advertisement.
  • Registration of the company with the Registre National des Enterprise (RNE).
Publishing a creation notice Statute Guidance Documentation for Company Registration Business Formalities Counter - Registration Portal

Employee considerations

  • Must appoint a legal representative.
  • The legal representative, company director/manager, and any employees arranging insurance contracts or interacting with clients must not have a criminal record.
  • Consulting industry professionals on French employment laws is recommended.
  • Professional qualifications and training must comply with the requirements on Chapter 5 of the Code d’assurance.
Declaration of non conviction -Déclaration de non-condamnation Code des Assurance

Regulatory considerations

  • More information can be found on Crystal+ under ‘Processing and servicing of risks'.
  • Contact Lloyd’s France for more information on individual requirements.
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Access local regulatory, compliance and tax information for France.

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Local Requirements

  • Registration with ORIAS (Organisme pour le Registre unique des Intermédiaires en Assurance, Banque et Finance) is mandatory for all insurance intermediaries. ORIAS maintains the national register of intermediaries in insurance, banking, and finance.
ORIAS

  • For EEA business, notifications are required by ORIAS. Passporting notifications “out” are handled by ORIAS (notifies other supervisory bodies) and passporting “in” by other EU bodies to ORIAS.
  • Mandatory insurance requirements for intermediaries include:
    • Professional indemnity: Required for regulated activities; intermediaries must meet financial guarantees and professional liability coverage standards.
    • Property Insurance: required for business leasing premises
    • Employee Insurance: Obligatory for the supplementary social protection of employees
Mandatory Insurance Guidance

  • The Autorité de Contrôle Prudentiel et de Résolution (ACPR) is the ultimate supervisory body for insurance companies and intermediaries. While ORIAS manages registration, ACPR oversees regulatory compliance and prudential supervision.

Lloyd’s registration process

Initiation

Co-ordinate with Lloyd’s teams to understand country interest, define service company and set timelines.

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Register and setup

Managing agents will submit business plans and work with country managers for regional setup according to local regulations. In tandem the service company is registered on Atlas to complete necessary business and company details.

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Due diligence

Managing agent’s maturity rating under PBO Principles is used to determine whether an Attestation or Decision Paper is completed, demonstrating satisfactory due diligence has been conducted.

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Service Company Underwriting Agreement

Once all registration and set up requirements are met, formal service company underwriting agreement can be signed and service company can start trading on agreed date.

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Additional information

Benefits of setting up a service company in France

  • Robust business opportunities: France hosts numerous large multinational corporations across strategic industries and sectors.
  • Expanding mid-market potential: Growth in exporting industries is driving economic dynamism.
  • Regional economic development: Vibrant metropolitan hubs beyond Paris—such as Bordeaux, Lille, Strasbourg, Lyon, Nantes, Toulouse, Marseille, Montpellier, and Nice—feature dense networks of small and medium-sized enterprises (SMEs).

The Autorité de Contrôle Prudentiel et de Résolution (ACPR) has recommended guidance for complaints handling. More information is found in the Lloyd’s Market Bulletin, and on Crystal+ under ‘Processing and servicing of risks’.

Lloyd’s Market Bulletin – Complaints handling procedure Crystal+