1.
DOING BUSINESS IN FRANCE &
TRADE OF FRANCE WITH WORLD
Presented By Group 8
Pawan Jangid
Shivam Gautam
Shrema Garg
Vishal Sharma
Atul Pandey
Vivek Kapoor

2.
Content
• France : Profile
• Foreign Trade
• Foreign Trade Statistics
• Doing Business Report
• Global Ranking
• Procedure of Starting Business
• Favorable Environment
• Corporate Taxes
• Labour Laws
• Government Support
• Conclusion

3.
France : Profile
•Name : France
•Capital : Paris
•Official Language : French
•Population : 62 Million(2008)
•Literacy rate : 99 %
•Currency : Euro
•Main Manufacturing Industry : steel,
chemicals, textiles, perfumes, aircraft,
machinery, electronics
•GDP : 2.83 trillion US $(2008)
•GDP Per Capita : 32700 US $(2008)

4.
France : Foreign Trade
• Export driven Economy
• Rank in World Trade(2008)
– Export
• Merchandise : 6
• Commercial Services : 4
– Imports
• Merchandise : 5
• Commercial Services : 6
• GDP to Trade Ratio : 55% (2008)

5.
Foreign Trade Statistics
• Merchandise Trade(2008)
– Exports : 605403 Million US $ (FOB)
– Share in Worlds Total Exports : 3.77 %
– Export Countries
– Imports : 705577 Million US $ (CIF)
– Share in World Imports : 4.3 %
– Import Countries
EU (27 Countries) 63.6%
US 5.9%
Switzerland 3.0%
EU(27 Countries) 60.3 %
China 6.6 %
US 5.5 %

6.
Foreign Trade Statistics
• Commercial Service Trade(2008)
– Exports : 160464 Million US $
– Share in World Exports : 4.25 %
– Percentage change over 2007 : 9 %
– Imports : 139359 Million US $
– Share in World Imports : 3.99 %
– Percentage change over 2007 : 11 %

7.
Doing Business in France

8.
Why France ?
• Worlds 5 largest Economy.
• Economy Driven By Foreign Trade.
• Highly Skilled Workforce.
• Business Friendly Environment.
• Access to European Market.
• Highly Developed Infrastructure.
• Lowest Setup Cost of Business

9.
New France
PLAY VIDEO 1

10.
Doing Business Report
• France Ranking in Doing Business Report
Criteria 2010 2009
Ease of Doing Business 31 31
Starting a Business 22 14
Dealing with Construction 17 16
Employing Workers 155 153
Registering Property 159 170
Getting Credit 41 43
Paying Taxes 59 55
Trading Across Border 25 22
Enforcing Contract 6 8
Closing Business 42 42

11.
Procedures For Starting
New Business
1. Check name for uniqueness with the Institute
National de la Propriété Industrielle (INPI)
2. Deposit the initial capital
3. Publish a notice of incorporation of the company
4. File a request for a company’s registration with
the Centre de Formalités des Entreprises (CFE)
5. Buy company books (minute books, inventory
books, ledgers). Have company books stamped
and initialed by the clerk of the commercial
court

12.
Procedure of Starting
Business
• 5 Procedures, 7 Days.
• 0.9 % of Per Capita Income

13.
Favorable Environment
• Second Largest in FDI inflow in world.
• In 2008 117.5 Billion US $ FDI.
• Highest FDI Inflow in Europe is in France(2008).
• Currently Around 23000 Foreign companies
working in France.
• Highly Productive Workforce.
• Ranked 3 in Productivity Per Hour.
• France is ranked 3rd in Europe for the percentage
of young people (25-to-34-year-olds) holding a
degree in tertiary education.

14.
Corporate Taxes
• Taxable business income is calculated by deducting
eligible expenses from revenue.
• Deductible expenses are those related to the company’s
business.
• Excluding temporary additional taxes, the following tax
rates are applied
– Standard rate of 33.33%.
– Small businesses pay 15% on the first € 38,120 and the
standard rate on remaining profits.
– An additional social-security levy of 3.3% is applied to
companies where income taxable at the standard rate
exceeds € 2,289,000.
• Losses can be carry Forwarded and Carry backed.

15.
Corporate Taxes
• Value Added Tax at 19.6 % uniformly.
• Vat for Food & Certain Agri. Product is 5.5 %.
• Medicines 5.5 % or 2.1 %.
• Property Taxes Companies are subject to property
tax on the rental value of land and buildings.
• Local Taxes are Calculated on the Base of Land &
Building which is half of 8 % of Base Value.
• Local Taxes Rates Decided by Local Authorities.

16.
Tax Incentives In France
• There are no duties when registering
newly formed companies.
• Tax exemption on Dividend received
from Subsidiaries.
• Exemption on Capital Gains generated
by Equity Share Transfers.
• Acquisition cost and Interest payments
can be Deducted.

17.
Labour Laws
• Freely Negotiated Labour Contract.
• Simple hiring procedures that may also be
completed online.
• Layoffs on personal or economic grounds.
• 35-hour week: greater flexibility since
2003.
• Retirement at 60.
• Staggering paid leave of five weeks.
• The social security system.

18.
Government Support
• For setting up in Economically Backward Areas
– By Government & Regional Authorities.
– Subsidies, Tax Exemptions, Tax Credit.
– for the period from 2007 to 2013, the limit on
assistance ranges from 10 to 15% of the
investment for large business and from 20 to 35%
for SMEs.
– In High Unemployment Areas Tax Exemption of
Corporate Taxes can be granted for 7 Years.

19.
Government Support
• Outside the Economically Backward Area For
Small Size Business 15 %, Medium size 7.5%
subsidy.
• For Research firms Govt. provide Research Tax
Credit(first year 50%, Second year 40%, Third Year
onwards 30%)
• Subsidies may cover a portion of R&D expenditure
• Up to 30% Expenditure can be covered by Govt.
for meeting the EU Environment norms.

20.
Why Corporate Have
Chosen?
PLAY VIDEO 2

21.
Conclusion
• France is the logical choice, with its location at the
heart of the EU.
• Second Highest in FDI inflow.
• 23,000 foreign companies already in France.
• Qualified and highly productive labor force,
unparalleled infrastructure, and low business setup,
real estate and electricity costs.
• No. 1 in Nuclear Energy Production.

22.
References
• en.wikipedia.org/wiki/France
• www.wto.org/english/thewto_e/coun
tries_e/france_e.htm
• www.doingbusiness.org/
• www.invest-in-france.org/

23.
Thank You…..