France

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Operating a Business in France

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	Registration fees
Individual businessman alone No notion of capital	1 person Liability for debts on his personal property.	None
Limited liability company (SARL) Set freely by the partners.	2 to 100 partners. Limited to the amount of capital contributed.	Administrative formalities costs: around EUR 76.19; Advertising costs in the Gazette: around EUR 230.
Private limited company under sole ownership (EURL) 7 500 minimum	1 person Limited to the amount of capital contributed.	Administrative formalities costs: around EUR 76.19; Advertising costs in the Gazette: around EUR 230.
Public limited company (SA) 2 250 00€ minimum if the company brings in public savings, 37 000 € otherwise	minimum 7 shareholders Limited to the amount of capital contributed.	Administrative formalities costs: around EUR 76.19; Advertising costs in the Gazette: around EUR 230.
Simplified joint-stock company (SAS). 37 000 minimum	minimum : 1 natural person or legal entity Limited to the amount of capital contributed.	Administrative formalities costs: around EUR 76.19; Advertising costs in the Gazette: around EUR 230.
General partnership (SNC). no minimum	minimum 2 partners Liability is joint and indefinite.	Administrative formalities costs: around EUR 76.19; Advertising costs in the Gazette: around EUR 230.
Limited joint-stock partnership no minimum	- the active partners - the silent partners - active partner: joint and indefinite. - silent partner: limited to the amount of capital contributed.	Administrative formalities costs: around EUR 76.19; Advertising costs in the Gazette: around EUR 230.
Non-trading company no minimum	minimum 2 partners Liability for registered debts.	Administrative formalities costs: around EUR 76.19; Advertising costs in the Gazette: around EUR 230.

Business setup procedures: The administrative formalities necessary to create a company have been simplified. Company formalities centers (CFE) have been set up; they are single places which forward all the documents in the creation dossier to the relevant services:
- the Clerk's office of the Commercial Court for registration in the Register of Commerce and Companies (RCS)
- the National Statistics Institute (INSEE) to obtain the numbers ( APE, SIREN, SIRET codes) necessary for recruiting employees and other procedures such as invoicing.
- the fiscal services (Tax Offices)and social services (URSSAF).
Some formalities are not taken care of by the CFEs such as requests for authorization for regulated professions or proof of domiciliation of a company.
Remember to check that the commercial name has not already been used or registered as a brand name with the INPI (National Institute for Industrial Property).
In addition, remember to reserve the domain name with the AFNIC (French Network Information Center) in case you decide to create a website in the more or less long term.
The competent organization: The Portal for the Company Formalities Centers
The register of commerce

Working conditions

Legal weekly duration: 35 hours
Retirement age: 65 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 60.
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%.

Cost of labor

Minimum wage: The minimum wage is 8.44 euros an hour.
Average wage: In 2005, the average annual wage for men was 24 446€ and for women 19 818 €.
Social contributions: Social security contributions paid by employers: 42% to 45% (the employer pays the contributions to be free of his commitments as regards sickness, retirement and unemployment).
Social security contributions paid by employees: 22%

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.
Unions: The CGT, general labor confederation
The CFDT, French democratic labor confederation
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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