French Business Law

Foreign investors looking to establish a business in France must comply with registration procedures, obtain necessary permits, and understand the regulatory landscape, including environmental and urban planning regulations.

The 2017 Duty of Vigilance Law imposes a due diligence duty on large French companies to identify risks and prevent severe impacts on human rights and the environment resulting from their activities, including those of their subsidiaries and suppliers.

An accountant in France is an absolute necessity…for anyone considering starting up their own business. The accounting principles in France are clearly defined – as with most official issues that you will encounter – and derive from the Code de Commerce and the and Plan Comptable Général. These codes are monitored, updated and amended as and when from the Code Général Des Impôts and by the Conseil National de la Comptabilité.

All trading entities are obliged to keep certain accountancy records.

Daybook – All movements that affect the assets and liabilities of the trading entity should be recorded, operation by operation and on a daily basis in the Daybook (sales, purchases, costs etc).
Inventory ledger– An annual list of assets and liabilities, the annual profit and loss account is to be recorded in that book.
General ledger – a listing of all accounts being used.

Although accounts should be drawn up in french, accounts drawn up in a foreign(non french) language sometimes are accepted by the authorities.

Previously, many enterprises were deterred from setting up business in France because of complex labour laws and tax and social security regimes, but over the last couple of  years there has been considerable reform in the way in which companies can set up and operate, with simplification and harmonization of taxation laws and working practices.

Expert legal advice is imperative to ensure that you take full advantage of the new legislation and working practices that are now in place.

Bureaucracy and paperwork can be difficult in your mother tongue but in a foreign language it can be daunting. It is obligatory to file statutory documents for company incorporations in France and to ensure that you have the statutes (the operating manual if you like!) of your company correct from the start and mistakes or omissions can be costly to correct.

Additionally you have the choice of how you intend to operate:

Code du Travail – Work code – In France Labour or Employment law is governed by the Code du Travail and there are strict regulations that appertain to many sectors of ones working life. The relationship between employer and employee in terms of the law is very formal and it is generally held that the majority of labour legislations falls in the interest of the employee.

Employees and employers alike have well defined responsibilities and rights, that are generally legally enforceable through the Code du travail or through règlement intérieur – collective agreement or work agreements.