Business & Startups

Game Studio France: Incorporation vs. Offshore Comparison

Decide whether to register your game studio in France or abroad while living locally. This checklist evaluates tax credits, social security costs, and legal risks of foreign incorporation.

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Source: Centre National du Cinéma et de l'image animée (CNC) - Crédit d'impôt jeu vidéo

Last updated: February 24, 2026

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French Subsidies and Incentives

Calculate the Video Game Tax Credit (CIJV) value

This credit covers 30% of eligible production costs up to €6M per year. You must pass a cultural test evaluating the original character and contribution to diversity to qualify.

Verify production costs exceed €100,000

Confirm game is intended for commercial release

Apply for JEI (Jeune Entreprise Innovante) status

This status grants exemptions from employer social security contributions for R&D staff for 8 years. Your R&D expenses must represent at least 15% of your total tax-deductible charges.

Verify at least 50% of capital is held by individuals

Contact Bpifrance for innovation loans

Bpifrance offers R&D innovation loans (Aide à l'innovation) that are often interest-free or repayable only if the project succeeds. Prepare a technical dossier detailing the technological obstacles your engine or gameplay mechanics overcome.

Check FAJV (Fonds d'aide au jeu vidéo) grants

The CNC provides subsidies for pre-production and production ranging from €20,000 to €150,000. These are grants, not loans, meaning they do not require repayment if the project fails.

Operational Costs and Social Security

Budget 45% for employer social contributions

In France, social charges for employees are roughly 45% of the net salary. While high, this covers universal healthcare and pension rights for you and your staff.

Calculate CFE (Cotisation Foncière des Entreprises) rates

This local tax is based on your office space value. If working from home, you still pay a minimum base rate which varies by municipality, usually between €200 and €2,000 annually.

Select a mandatory health insurance (Mutuelle)

French law requires companies to provide and pay at least 50% of a private health insurance plan for all employees. Shop for providers that specialize in digital or tech startups for better rates.

Factor in the CICE or equivalent labor tax credits

While the CICE has been replaced by permanent social charge reductions, confirm the current 'Fillon reduction' for lower salaries.

Legal Risks of Foreign Incorporation

Identify 'Place of Effective Management' (POEM)

If you live in France and make all strategic decisions from your French home, the DGFiP considers the company a French tax resident. Failure to register locally can lead to charges of 'hidden activity' and 80% tax penalties.

Consult an international tax lawyer on Permanent Establishment

Review Transfer Pricing documentation requirements

If your foreign company pays a French freelancer (you), the rate must be at 'arm's length' or market value. The French tax office will audit these transactions to ensure you aren't shifting profits abroad.

Analyze the Exit Tax implications

If you hold significant shares in a foreign company and move or sell, France may tax the unrealized capital gains. This applies if your holdings are worth over €800,000 or represent 50% of company profits.

Intellectual Property and Asset Management

Register your studio name and game title early. An EU-wide trademark costs approximately €850 for one class and protects you across all member states.

Draft 'Work for Hire' contracts for all contributors

In France, moral rights are inalienable. Ensure contracts explicitly state the transfer of economic rights (droits patrimoniaux) for all code, art, and music produced by contractors.

Establish an IP holding strategy

If using a foreign parent company, use a licensing agreement to move IP. Be aware that the French 'IP Box' regime offers a reduced 10% corporate tax rate on income from patents and copyrighted software.

Administrative Setup in France

Choose between SAS and SARL structures

The SAS (Société par Actions Simplifiée) is preferred by tech startups for its flexibility and the 'assimilé-salarié' status for presidents. The SARL is more rigid but offers lower social charges for the majority manager (TNS status).

Deposit share capital (Capital Social) at a bank

You need a certificate of deposit to register. Most traditional banks take 2-3 weeks to open a professional account; online pro-banks can do it in 48 hours but may not support all game-related transactions.

File registration via the INPI Guichet Unique

This single portal replaces the old CFE. You will need your articles of association (statuts), proof of address, and a non-conviction statement.

Request an Intra-Community VAT number

This is essential for selling on digital storefronts like Steam or Epic. It usually takes 2-4 weeks to receive this from your local Service des Impôts des Entreprises (SIE).

Frequently Asked Questions

Can I run a US LLC while living in France?

Technically yes, but it is highly inefficient. France will view the LLC as a 'transparent' entity or a 'société de fait,' meaning you will be taxed on the company's full revenue as personal income. Additionally, you will likely be liable for French social security contributions on that revenue, often exceeding 45%.

What is the cultural test for the French Video Game Tax Credit?

It is a 36-point scale where you must score at least 14 points (or 15 for certain categories). Points are awarded for factors like the game being based on European culture, the use of the French or an EU language, and the majority of the creative team being French or EU residents.

How much does it cost to incorporate a game studio in France?

Expect to spend between €500 and €2,500. This includes legal publication fees (€150-€200), registry fees (€40-€60), and optional legal fees for drafting the statutes. You also need a minimum of €1 for share capital, though €1,000 is the industry standard for credibility.

Do I need a physical office to get French grants?

Yes, for the CIJV and most CNC grants, the company must have a physical establishment in France. While you can use a domiciliation service or a home office, the actual production work must be demonstrably performed by staff or contractors taxable in France.