Doing Business in France
Business start up in France -Move your business forward in France.
Previously, many enterprises were deterred from setting up business in France because of complex labour laws and tax and social security regimes, but over the last couple of years there has been considerable reform in the way in which companies can set up and operate, with simplification and harmonization of taxation laws and working practices.
Expert legal advice is imperative to ensure that you take full advantage of the new legislation and working practices that are now in place.
There is a myriad of operating styles dependent upon the circumcumstances of your business structure and the professional sector in which you work ( eg the construction and performing arts sectors have a specialised format of trading ) however in general the main company trading styles are:
- Société Anonyme (SA) - The most sophisticated french company trading style that requires seven company officers and is entitled to launch publicly.
- Société à responsabilité limitée (SARL) a company that has limited liability to the amount of the company share issue with at least two officers
- Société par actions simplifée (SAS) - a recent style of corporate trading and tailored towards holding companies and foreign corporations wishing to retain total control over subsidiaries
- Société par actions simplifée unipersonnelle (SASU) - this is a one person SAS
- l'Entreprise unipersonnelle à responsabilité limitée (EURL) - this is a one person operative SARL.
In addition to corporate entities there are several trading styles that can be opted for by individual traders and partnerships, for example:
- Société en nom collectif -(SNC) general trading partnership
- Société Civile - (SC) a non trading partnership
- Groupement d'intéret économique (GIE) -A consortium of related businesses pooling their resources for competitve advantage
All trading entities are obliged to keep certain accountancy records.
- Daybook - All movements that affect the assets and liabilities of the trading entity should be recorded, operation by operation and on a daily basis in the Daybook (sales, purchases, costs etc)
- Inventory ledger- An annual list of assets and liabilities, the annual profit and loss account is to be recorded in that book.
- General ledger - a listing of all accounts being used.
Although accounts should be drawn up in french, accounts drawn up in a foreign(non french) language sometimes are accepted by the authorities
Whatever your choice you will be obliged to abide by the laws in France and for that reason it is important that you seek clear, concise, legal advice.
Labour & Work Issues in France- Code du Travail - Work code
In France Labour or Employment law is governed by the Code du Travail and there are strict regulations that appertain to many sectors of ones working life. The relationship between employer and employee in terms of the law is very formal and it is generally held that the majority of labour legislations falls in the interest of the employee.
Employees and employers alike have well defined responsibilities and rights, that are generally legally enforceable through the Code du travail or through règlement intérieur - collective agreement or work agreements.
Employment contracts can be for fixed or open terms.
French Code du Travail
Information kindly provided by Solicitors in France -Contact group@irl353.com for more information and specialist legal advice in plain English.
Disclaimer: The information contained on this page does not set out to give anything other than a glimpse of certain aspects of this area of French Law. Professional advice should always be sought from a qualified French lawyer.
Area Info
- Travel
- Weather
- Languedoc Roussillon
- French Pyrenees
- Aquitaine France
- Perpignan Property
- Argeles Sur Mer Property
- St Cyprien Property
- Banyuls Sur Mer Property
- Collioure Property
- Foix Property
- Tarbes Property
- Pau Property
- Lourdes Property
- Toulouse Property
- Bayonne Property
- Saint Jean de Luz
- Biarritz Property
- Saint Lary Property
- Argeles Gazost Property
