Group8 franceFrance

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Group8 franceFrance

  1. 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. 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. 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. 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. 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. 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. 7. Doing Business in France
  8. 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. 9. New France PLAY VIDEO 1
  10. 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. 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. 12. Procedure of Starting Business • 5 Procedures, 7 Days. • 0.9 % of Per Capita Income
  13. 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. 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. 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. 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. 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. 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. 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. 20. Why Corporate Have Chosen? PLAY VIDEO 2
  21. 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. 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. 23. Thank You…..

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