Foreign investment screening in France: the IEF regime in brief
France subjects foreign investment in sensitive activities to prior authorisation by the Minister of the Economy, under articles L.151-3 and R.151-3 et seq. of the Code monétaire et financier. The screening catches acquisitions of control, of activity lines, and crossings of 25% of voting rights — 10% in listed French companies, a rule made permanent by décret n° 2023-1293 (in force 1 January 2024). In 2024, 392 investments were reviewed and 54% of clearances carried conditions: the regime is an operational deal parameter, not a formality.
The legal base
The regime sits in the Code monétaire et financier (articles L.151-1 to L.151-7 and R.151-1 et seq.). The décret n° 2023-1293 of 28 December 2023 widened the list of sensitive sectors — adding critical raw materials, photonics, low-carbon energy R&D and prison security — made the 10% listed-company threshold permanent, and extended coverage to French branches of foreign companies.
Thresholds
For non-EU/EEA investors, screening is triggered by the acquisition of control, of all or part of an activity line, or the crossing of 25% of voting rights in an entity carrying sensitive activities. For listed French companies, a 10% crossing triggers a notification with a fast-track review. Indirect holdings and concert situations count toward the thresholds.
Procedure
Filing runs through the state Plateforme IEF — the single channel since 2024. The path: an optional rescrit on applicability, then the authorisation request, instruction in phases, and a decision — clearance, conditional clearance, or refusal. Conditions typically address continuity of sensitive activities, security of information and supply, and governance ring-fencing; they bind after closing and are monitored.
FAQ
Which transactions fall within the French IEF regime?
Three cumulative questions decide it. First, the investor: non-EU/EEA investors face the widest net, but intra-EU acquisitions of control in listed activities are covered too. Second, the target's activity: the Code monétaire et financier lists sensitive sectors from defense and dual-use to health, data hosting, critical raw materials and low-carbon energy R&D. Third, the operation: acquisition of control, of an activity line, or a crossing of 25% of voting rights — 10% for listed French companies. If all three align, prior authorisation is required before closing.
What happens if a deal closes without required clearance?
The sanction set is serious: the ministry can order the transaction unwound, impose financial penalties that scale with the deal, and the closing itself is exposed to nullity. Beyond the legal exposure, remediation after the fact — negotiating commitments from a position of irregularity — is materially worse than filing on time. This is why feasibility is read before signing and why long-stop dates are set against the instruction calendar.
Can an investor ask in advance whether the regime applies?
Yes. The rescrit mechanism lets the investor or the target ask the ministry whether the activity falls within the screening perimeter; the answer binds the administration on the point asked. It is filed on the Plateforme IEF like the authorisation request itself. Used early, it converts the threshold question from a legal-opinion debate into an administrative certainty — at the price of the response period, which the deal timetable has to absorb.
General information, current as of 18 June 2026. Not legal advice. Subject to applicable law.