The French Council of State has determined that a foreign company can be considered as a VAT/IS stable establishment in France, even in the event its French sister company is not effectively habilitated to conclude contracts in its name.
That the French sister company negociates contracts on its own that the foreign company only endorses is enough for the French company to considered to have the power to bind its foreign sister company
Foreign companies must therefore be extremely careful when delegating commercial prospecting to a sister company in France.
Source: Council of State of France (in French)
