Starting a Business in France: A Step-by-step Guide (How to): A Step-by-step Guide (How to)

234 Pages·2006·8.94 MB·English

by  Richard Whiting

S t a r t i n g
a B u s i n e s s
in France
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S t a r t i n g
a B u s i n e s s
in F r a n c e
A S T E P - B Y - S T E P G U I D E
^^^^^^^^^^^^^^^^^B
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Contents
Preface ix
Acknowledgements xi
PART 1: Seting Up the Busines 1
1 Al-important prior questions 3
Why start a busines in France? 3
What sort of busines do you want to start? 4
What name wil you choose for your business? 13
Where should you set up your busines? 14
When should you start your busines? 16
Understanding everything and being understood 16
2 Geting market research right 23
Reducing your risk through market research 23
Reading your market research report 26
Sourcing information on your market 27
Testing the marketplace 28
3 Forme juridique, social security and taxation 33
What formes juridiques are available? 34
El 36
Societes (companies) 39
EURL 40
SARL 41
Qualified professional people working together 42
SARL (or SA) SCOP 43
SCI 4
SAS 45
Social security and unemployment benefit 48
Taxation 52
Ir and is 52
V I / S T A R T I N G A B U S I N E S S I N F R A N C E
Regime rel simplifie 53
Regime rel normal 54
Micro-entreprise 54
Declaration controle 54
Imposition for forfaitaire anuele 56
Why not register as a UK company? 58
4 What sort of busines plan? 59
Sumary 60
Presentation of the entrepreneur 61
Presentation of the product 61
Financial details 63
5 Advice, information, aid, grants and loans 71
Advice available 72
Information available 74
Aid available 76
European Union grants 84
Loans (and consultancy) 85
Regional loans 90
6 Private funds, bank loans, venture capital and leasing 94
Private funds 94
Banks 96
Venture capital 9
Leasing 101
7 Premises 104
Buying premises 104
The buying procedure 110
Renting premises 14
Bail commercial 15
Bailprecaire 19
Credit-bail 120
Working from home 121
Busines centres 123
C O N T E N T S / VII
Les pepinieres d'entreprises 126
ZFU.ZRU and ZUS development areas 126
Business location checklist 128
Ofice layout, fitings and equipment 129
Broadband connection 131
8 Procedures 134
Registration formalities 135
9 Avoiding pitfals 139
Part 2: Running the business 149
10 The accounts and corespondence 151
Centres de gestions agrees 151
Accounting principles 154
Corespondence 156
11 Geting and keeping customers 158
Marketing 158
Websites 164
Prospecting and geting appointments 166
12 Employing people 169
Recruitment 170
Employment conditions 179
Employment benefits 183
Employment contracts 184
Employing husbands or wives 193
Redundancy and dismissals 195
Appendix 1 The administrative regions of France and their 201
departement divisions
Appendix 2 Some false friends 205
Appendix 3 Approximate resale values for businesses 209
Index 215
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Preface
200,000 businesses on average are started every year in France
and approximately 50 per cent of them fail or change their propri-
etor or legal status during the critical first five years. The failure
rate is a high proportion of this percentage. Motivation is cer-
tainly not lacking as 300,000 salaried positions annually in the
job market are not filled. Choosing to work for yourself, rather
than having to, is the main motivation. INSEE (the national insti-
tute for statistics and economic research) reveals that almost 60
per cent of unemployed people who start their own business
already had this in mind when they were still in salaried employ-
ment. Around a third of new businesses are created by the
unemployed.
Getting market research, finance, advice, short- and medium-
term business development plans, administrative details and
suitable initial legal structure for the business right are essential.
All these elements are or can be different in France. The first part
of this book covers these themes. Despite the easier administra-
tive path created by Dutreuil's law in 2003, starting a business in
France certainly remains more difficult than in the UK. The capi-
talist economy is still heavily influenced and regulated by the
state. English-speaking entrepreneurs with previous experience of
starting and running a business in more liberal markets relatively
free from state controls may find the French system frustrating.
But they will have the risk-taking edge over French entrepreneurs
starting up for the first time and who have no business experience