France is one of the most powerful global powers in the world, but what’s it like to do business there. Well, here are 10 things you should know about doing business in France.
A Large Market
France has a market of 65 million consumers. Additionally, France has access to the single market of the European Union, which has a market of over 500 million consumers. Furthermore, France’s market has a high purchasing power – it is the second-largest economy in Europe and the sixth-largest in the world.
Efficient Transport Infrastructure
France is the home to the largest road network in Europe and the second-largest high-speed railway network in Europe. Additionally, it is home to the second busiest airport regarding cargo and passenger handling – the Roissy-Charles-de-Gaulle.
The efficiency in the transport network is reflected by the fact that France receives the largest foreign direct investment in logistics.
For instance, the hourly labour productivity of France is ranked sixth (producing €45.6 every hour compared to the Eurozone’s average of €37.3). Additionally, as of 2013, 44% of the workforce age between 30 and 34 were higher-education graduates.
Low Set-up Costs
The cost of setting up a business in France is by far lower than it is in France, Germany, Japan, and the U.S. With regards to renting office space in Paris’ business district at €875/m²/year is about half the price of renting office space in London’s West End €1,978/m²/year.
You also should note that setting up a business in France costs less than 1% of the average per capita income. In other G20 countries, the average cost is about 9% of the average per capita income. For these reasons, the world’s largest incubator – Halle Freyssinet, which will bring together more than 1,000 start-ups in 2016, has set up in France.
Favourable Business Environment
With elements such as the research tax credit (CIR) (extended to more than 20,441 companies in 2012) being open to all companies, France has a very favourable business environment. The CIR amounted to €5 billion in 2015.
The Responsibility and Solidarity Pact and Competitiveness and Employment Tax Credit (CICE) amount to a €40 billion reduction in the production cost for companies in France (equivalent to 2% of the GDP). These programs are geared towards making it easier for companies to do business and enable the business community to create 500,000 jobs by 2020.
Additionally, other financial services create a good environment for France.
For example, Euronext Paris is ranked as the world’s 7th largest financial center. It is also the 3rd largest in Europe in handling company bonds, and 3rd largest in managing financial assets and the 5th financial center in handling Yuan transactions.
Additionally, France passed the act that simplifies the running of businesses. The act helped companies save €3.3 billion between 2013 and 2014. Furthermore, it is estimated that the Single Individual Social Declaration saving to companies amounted to €1.6 billion between 2015 and 2016.
France has also signed tax conventions with over 120 countries to eliminate double taxation. The VAT rate in France is 20%, though there is a 5/10% reduced rate depending on your business and other variables.
France Is A Popular Destination
France is the world’s number one destination for business conferences, the world’s number one destination for tourists, and the world’s number three for students. Additionally, France adopted the talent passport to attract the best in various fields.
The French Tech Ticket, a grant and support system to encourage innovative entrepreneurs, will start to attract the best innovators worldwide to France.
France Is Leader In Online Administration
In this regard, France ranked 4th based on telecommunication infrastructure, the population’s education level, and the government’s online services.
France is an attractive destination for businesses looking to expand their operations. It offers a number of advantages, such as a highly educated workforce, access to the European Union market, a competitive corporate tax rate and a diverse range of industries. Additionally, France is known for its culture and lifestyle which can make it an appealing place to live and work.