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Setting up in France

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Following its success in three different countries, the company ChineTechExpress (CiX) would now like to set up in France. They seek advice from D2K Avocats because they are concerned with the local social and tax risks.

D2K Avocats explain to them that although the employment of labour can be quite costly in France (salaries, five weeks paid leave, employer contributions), it is still possible to reduce the final sum in many cases (new companies; employment of disabled, young, older, unemployment or without training workers…).

CiX Company were told that in France, in case of an employment contract termination, the employers would most likely find themselves before the courts. D2K Avocats reassure them regarding the existence of a conventional termination procedure, which allows to terminate an employment contract by mutual agreement, at a low cost.

D2K Avocats summarize the French taxation rules to CiX. They explain for instance that in France, the company tax system is territorial: a French registered company – as much as a foreign company doing business in France – is likely to pay taxes in France, the main one being the corporate tax.

D2K Avocats also inform CiX of circumstances which allow a tax cut, especially regarding the surface area, the New Enterprise status or also the research and development budget.

Once all the data is known, CiX can set up in France, counting on the help of D2K Avocats, to choose and complete the necessary formalities for the creation of its new structure, to draft the contracts and to acquire the potential visas.

International disputes

Misses Daico is the CEO of a Canadian company that produces and sells locally-made design elements, under the brand CaDaicoz. Her business relations became strained with her French distributor, who had failed to pay his bills for over six months and whose financial situation was deteriorating rapidly.

After attempting one last resort for an amicable resolution, D2K Avocats simultaneously prepared a procedure of protective attachment and main proceedings in order to obtain an enforcement order which would permit Misses Daico to finally collect the unpaid amounts.

Thus, Misses Daico’s debt was protected against her distributor’s other creditors, and was fully recovered after the Court decision.

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Korea export contract and establishment

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After conquering the French market, the company KZeeeP wishes to export its fabrics to South Korea. In order to start in this new country, D2K Avocats propose either of the following solutions:

  • The commercial agent, who can maintain control over the commercial policy, while benefiting from his market knowledge.
  • The local distributor, who represents a more organised alternative, in order to ensure the development of the resources.

D2K Avocats assist KZeeeP in their choice. After that, D2K Avocats make available their own network to KZeeeP in order to help them find the optimum partner, then draft the contract that will permit to secure their future business relation.

Two years later, KZeeeP encountered the success that was hoped in South Korea. Now, they would like to establish there and consult D2K Avocats in order to determine the type of structure to be privileged. D2K Avocats propose many possible solutions such as:

  • Establishment of a branch, which doesn’t have its own legal identity but that can control the commercial policy.
  • Setting-up a subsidiary,that is a separate company which usually has the advantage of successfully applying for public aids.
  • Establishment of an international joint venture, which facilitates business expansion in countries with distinct cultures and can reduce costs.

D2K Avocats use their local network for the new business expansion to be fast and successful and prepare all the necessary contracts and documents.

Investments in France

Mr and Mrs Money are Qatari investors. They consult D2K Avocats about an investment project in France.

D2K Avocats explain to them that France is an ideal country to invest at more moderate costs than some valued areas such as the Silicon Valley.

France offers numerous public aids according to the project, the sector, the region of the location… There are, for instance, in the region of Lyon aids earmarked for young innovated businesses, for SOHOs, for supporting companies, for waterway transport companies… Whatever the project, there are many chances to benefit from these aids directly or through tax credit, an exemption from Estate Tax…

Besides, French investments should be facilitated by the existence of a particularly flexible type of company: the simplified joint-stock company (SAS, société par actions simplifiée), that operates in accordance with its own regulations.  The freedom offered by this type of structure makes it a privileged choice both SMEs and large corporates.

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