France

Why trade or invest in France?

With a market of 65 million inhabitants, France has a strong and diversified economy.  France is second for chemical industry; third for alimentation sector, fourth for information and communication technology.  France investment attractiveness can be seen by the fact that it offers investors competitive conditions in which to set up and run their business.

The high standards of the French education system are widely acknowledged, which when combined with a well-qualified workforce, comprise a decisive key strength as a business location.  Thanks to its efficient transport infrastructure providing easy access to foreign markets, companies based in France stand to enjoy these major advantages as they seek to expand internationally.

France is at the cutting edge of innovation and technology. It is a nation that enjoys an enviable reputation for its researchers, depth of its talent pools, and a very advantageous research environment, aided notably by France’s research tax credit.  The digital economy and green growth are the driving forces behind innovation, growth and employment, and lie at the heart of France’s industrial and technological ambitions.

Some particularities of the French legal system you should know

As with every country foreign to your own it is important to familiarize yourself with the particularities of the country that you want to trade with or invest in.  France has a legal system stemming from Roman law and based upon codified laws. The Civil Code was drafted in 1804 under Napoleon I.  Nevertheless judges have the duty to interpret the law and the decisions of the higher courts have a certain influence on the inferior courts even if they are not bound by any higher court’s decision.

There are several categories of courts divided into two major branches, a Judicial branch and an Administrative branch.

Employee transfers between group companies

Companies must follow the ‘agreed termination’ procedure in case of transferring employees between group companies. This procedure takes at least 45 days and needs to be validated by authorities.

Employee rights in case of sale of French SME

Employees need to be informed in cases where a French SME consider selling their shares or an ongoing business in order to stimulate the employees to acquire the business. 

The Act of 12 November 2013

This act authorizes the Government to simplify the relations between the administration and the French citizens and poses in this respect the principle that the silence of the administration on an application is considered approving the application.  This is an implementation of the principle ‘silence is agreement’.

These provisions apply from 12 November 2014 to requests from French citizens to government administrations and public establishments as of that date.

A long list has been published for public information to give an idea to which procedures the principle can apply.

Protection of privacy

In France protection of privacy is anchored in the Constitution.

Whom we work for

We have been assisting a wide range of clients from different regions worldwide concerning their investment projects in France.  The sectors involved are inter alia the logistic and maritime sector, chemical sector, manufacturing, IT, printing, medical, FMCG, machinery and heating equipment, technology, aviation, textile and fashion and so on.  The performance of due diligences and guiding of M&A’s and setting up of JV’s in France is key expertise within the A-Law international team.

We have been assisting in the negotiations concerning distribution agreements, franchising, and commercial agency agreements between Belgian/European and French counterparts as well as procurement and supply agreements for DIY (do it yourself) concerns and supermarkets (les grandes surfaces).  Debt recoveries for or against French entities, making use of the European Order of payment or local legislation is part of A-LAW expertise.

A-LAW further assisted individuals with the acquisition of property in France and the related tax compliance regulations, inheritance and family law matters.  On the litigation side, A-LAW has experience in tax law, corporate law, labor law, logistics and traffic law issues.