Doing Business In France

The article gives you information on Doing Business In France. Doing business with the Europeans can be very rewarding. Globalization has further made trade between far off countries easier. Foreign investment has increased in countries such as U.S. and China, with France becoming the world’s third leading recipient of foreign investment. France is an ideal place to invest in and conduct a business due to minimal administrative restrictions.

Doing Business In France

The rules and regulations are the same for all the companies irrespective whether they are French or not. You can buy, rent, acquire a French company, or create your own legal entity without any restrictions on investment or the creation of a minimum number of jobs.


Flexible Labor Laws

The French labor market is flexible in terms of hiring of labor and tax incentives on overtime hours. A fixed reduction in the contribution made by employers to social security is an added benefit. Working hours can be raised for managers and independent salaried employees through a collective agreement. Retailers in spa and tourist areas also have the opportunity to conduct business on Sundays.

Work contracts have been modified to last from 18 to 36 months. New hiring rules have been introduced with blue collar workers having a maximum trial period of 4 months, and 8 months for managers. A new contract form has been created where employees and employers can terminate contracts by mutual consent, and is exempt from tax and social security contributions. The French labor code has been revised to make it more accessible for businesses.

Modified Tax System

A reduction in corporate tax from 33.33% to 15% has made France one the most investor-friendly countries in Europe, after Ireland – and great for business development. The country offers various tax credits for industries involved in research. R&D companies are allowed to benefit from tax and social security exemptions from the first year of existence.

Capital gains on the sale of equity transfers are exempted from tax. A number of tax reforms for have been designed to support industrial activities. Tax consolidation rules have been framed in favor of companies. Local business tax has been abolished on productive investments, which will help reduce the tax burden on industry and make the country more capital investment-friendly.

Start-up Support

Investors have the support of the French government in various aspects of starting up a business. The support depends on the type of investment project, the location, and type of company. Extensive support is provided to those investing in areas that are undergoing industrial redevelopment, business R&D projects, and environmental protection, among others. Special attention is being paid to companies that create jobs in defined regions.

There is no distinction between French and foreign companies when it comes to rules and regulations. Foreign companies can buy or rent property easily. Setting up a business is easy since the formalities and procedures can be completed in five days.

Such incentives makes France an attractive place to conduct business. Most reforms have a multi-faceted approach that is aimed at providing greater freedom of labor, more autonomy for companies, and flexibility to negotiate with trade unions.

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