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flag France France: Operating a Business

Setting Up a Company | Working Conditions | Cost of Labor | Social Partners

Setting Up a Company

Legal Business Entities

Types of Companies and Capital (Max/Min) Number of Partners/Shareholders and Liability
Individual businessman alone
 
No notion of capital
1 person
 
Liability for debts on his personal property.
Limited liability company (SARL)
 
Minimum: EUR 1
1 to 100 partners.
 
Limited to the amount of capital contributed.
Private limited company under sole ownership (EURL)
 
7,500 EUR minimum
1 to 100 person
 
Limited to the amount of capital contributed.
Public limited company (SA)
 
EUR 225,000 minimum if the company brings in public savings, EUR 37,000 otherwise
minimum 7 shareholders
 
Limited to the amount of capital contributed.
Simplified joint-stock company (SAS).
 
Minimum: EUR 1
minimum : 1 natural person or legal entity
 
Limited to the amount of capital contributed.
General partnership (SNC).
 
no minimum
minimum 2 partners
 
Liability is joint and indefinite.
Limited joint-stock partnership
 
no minimum
2 partners: the active partners and the silent partners
 
The active partner: joint and indefinite;
The silent partner: limited to the amount of capital contributed.
Non-trading company
 
no minimum
minimum 2 partners
 
Liability for registered debts.
 
The Competent Organization
The Portal for the Company Formalities Centers
The register of commerce
Search a Company or a Financial Report
Société
Infogreffe
Verif.com, Financial and legal information.
Manageo.fr, Financial and legal information.
 
Setting Up a Company France OECD
Procedures (number) 5.0 5.6
Time (days) 7.0 13.8

Source: Doing Business.

 
Business Setup Procedures
Consult Doing Business Website, to know about procedures to start a Business in France.
Trade Register, in French.
Registry of the Tribunal de Commerce de Paris, in French.

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Working Conditions

Legal Weekly Duration
35 hours
Retirement Age
67 years of age, but as soon as the employee has paid enough into the compulsory retirement scheme, he can leave his work any time after age 62.
Working Contracts
The permanent contract (CDI) is the type of contract which is most often used.
The fixed-term contract (CDD) makes it possible to resort to temporary workers.
The Contrat Nouvelle Embauche (New Hiring Contract) is a new form of CDI where the rules for breach of contract are more flexible during the first two years in exchange for the payment of an indemnity of 10%.

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Cost of Labor

Minimum Wage
The minimum gross wage is EUR 9.00.
Average Wage
The average annual wage for men is EUR 24,446 and for women EUR 19, 818.
Social contributions
Social Security Contributions Paid By Employers: 42% to 45% (the employer pays the contributions to be free of his commitments regarding sickness, retirement and unemployment).
Social Security Contributions Paid By Employees: 22%

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Social Partners

Social Dialogue and Involvement of Social Partners
In France negotiations take place at the national level, at the level of sectors of activity and at the company level. French labor law provides an extensive institutional role for employee representatives and for organized labor.
Unions
The CGT, general labor confederation
The CFDT, French democratic labor confederation (in French)
FO, workers' union
The CFTC, French Christian workers' confederation
The CFE-CGC, management confederation-general confederation of managers
The UNSA, national union of autonomous unions
The Solidaires trade union
Unionization Rate
Today 8% of French employees belong to a union, that is twice fewer than 25 years ago. And yet the unions remain strong and active.
Labor Regulation Bodies
The Ministry of Employment

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Learn more about Operating a Business in France on Globaltrade.net, the Directory for International Trade Services.
 

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Last Updates: January 2012