Business Administration in France

Overview by Globlatrade.net:

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 EUR 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)
 
 
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.
Administrative formalities costs: around EUR 76.19; Advertising costs in the Gazette: around EUR 230.
Simplified joint-stock company (SAS).
 
 
EUR 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
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.
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
Search a Company or a Financial Report
Société
Infogreffe
Verif.com, Financial and legal information.
Manageo.fr, Financial and legal information.

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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%.

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Cost of Labor

Minimum Wage
The minimum wage is EUR 8.44 an hour.
Average Wage
In 2005, the average annual wage for men was 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.
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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