Enterprises Federation

The government information website for SMEs
Net PME, the information website for SMEs
The Directorate-General "Enterprise and Industry" of the European Commission
The CGPME (General Confederation of Small and Medium Enterprises)
The MEDEF (Movement of French Enterprises)

Business Setup Procedures

Administrative Formalities

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

Time Necessary for Registration

The wait is only a few days, but during this time the legal representative can carry out administrative formalities thanks to the receipt concerning the creation of a company.

Recovery Procedures

Principle

In the framework of the safeguard scheme, two legal decisions are generally made:
- being put into receivership, a state where payment stops, it is impossible to face the liabilities due with the current assets.
- compulsory liquidation, a persistent state where payment stops and receivership is manifestly impossible.
Since the law of July 26, 2005, it is possible for a buyer to make a takeover bid for a company once the safeguard or receivership procedure has begun.

Minimum Debt-to-Capital Ratio Triggering Liquidation

No minimum

Bankruptcy Laws

The Commercial Code

Reorganization and Rehabilitation Laws

The economic initiative Act 2003-721 of 1 August 2003
Company safeguard scheme: Commercial Code art. L. 626-1 et seq. and R. 626-1 et seq.

Source: Insee

Source: INSEE

For Further Statistics

INSEE statistics on work

For Further Information About the Labor Market

ILO, International Labor Organization
Studies and research of the Ministry of Employment

Opening Hours

 

• Legal Weekly Duration

35 hours

• Maximum Duration

Maximum duration:: 10 hours per day and 48 hours per week.

• Night Hours

Between 9pm and 6am.

Working Rest Day

The weekly rest day of at least 24 hours is Sunday; this day must be observed but permanent dispensations may be granted for particular activities.

Paid Annual Vacation

2 and a half working days of paid vacation a month; working days are all weekdays except Sunday and public holidays.
This equals 30 days or 5 weeks vacation a year.

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.

Child Labor and Minimum Age For Employment

16 years old

Informal Labor Market

About 6% of the population say they have worked without being declared every year. For further information consult the European Commission's study of undeclared work.
Undeclared work is above all made up of hours of work only partially declared or undeclared overtime.

Pay

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.

Other Forms of Pay

• Pay For Overtime

Between the 36th and 39th hour an increase of 25%.
Between the 40th and the 43rd hour an increase of 25%.
From the 44th hour an increase of 50%.

• Pay For Rest Days Worked

According to the collective agreements, except May 1 which is increased by 100%.

• Pay For Night Hours

For one hour of night work if it is for less than 25 nights a year: an increase of 25%
For one hour of night work if it is for more than 25 nights a year: 10%

• Pay For Overtime at Night

The same as for overtime.

Social Security Costs

The Areas Covered

Health insurance (medical care, maternity, disability, death), retirement pensions, family allowances, unemployment benefit.

Contributions

Contributions Paid By the Employer: 42% to 45% (the employer pays the contributions to be free of his commitments regarding sickness, retirement and unemployment).
Contributions Paid By the Employee: 22%

Competent Organization

URSSAF

Recruitment

Method of Recruitment

More and more applications are made via Internet. The method of recruitment in France is by face to face interview.

Recruitment Agencies

The ANPE is the official employment agency.
There is also a specialized agency for managers, the APEC.
Recruitment agencies: Michael Page International, Hudson, etc.
Agencies specialized in temporary work: Vediorbis, Adecco, etc.

Recruitment Websites

Portal for on-line recruitment
Emploi.com
Monster

The Contract