Overseas JobsEstates WorldwideArticles For Investing OffshoreeBooks For ExpatsCountries To Move ToLiving OverseasOverseas RetirementEscape From America MagazineEmbassies Of The WorldOffshore Asset ProtectionEscapeArtist Site Map
Article Index ~ France Index ~
Escape From America Magazine
Getting Established To Do Business As A Foreigner In France
By Daniel Arthur Laprès
WHO CAN IMMIGRATE TO FRANCE?
Foreigners face different situations depending on whether they originate from countries in the European Union, countries with which France has signed treaties governing establishment (the United States is one such country), or countries whose citizens are subject to more rigorous controls on their entry into France (this is the case for citizens of all but some thirty countries).

Countries in the European Union

A basic principle of the European Union is freedom of circulation for citizens of the Union countries throughout the territory of the Union.

This right of European Union countries' citizens guarantees that they can set up to do business in France but it does not eliminate the need to go through immigration registration procedures. In particular, they must apply to the Préfecture de Police (police headquarters for their region) for a "carte de séjour" (residency card). In making this application, it will be necessary to provide proof of the economic activity to be undertaken: employment contract for managers of companies establishing offices in France, bylaws of any French company in the process of constitution, bylaws and business registration certificate of foreign companies establishing branches in France, a lease for the premises where the business is to be carried on.

Countries whose citizens do not require visas
Other than European Union members, some fifteen countries have ties with France such that their citizens can enter French territory and stay for up to three months without a visa.

These countries include: Andora, Canada, Cyprus, the Holy Seat, Hungary, Iceland, Japan, Malta, Monaco, Norway, San Marino, South Korea, Switzerland, Tchekoslovakia, and the United States. In 1986, after the territorist attacks, citizens of the Maghreb countries lost the right to enter France without a visa.

With an even more limited noumber of countries, France has concluded treaties governing establishment. As between France and the United States, the establishment treaty gives the citizens of each country a right to establish themselves in the other but does not eliminate the need to go through normal immigration procedures. 

Business people from all the above countries can, without obtaining a visa, come to France to carry on business provided that they do not abandon their primary center of activity in their country of origin.

Offshore Resources Gallery
Live & Invest Overseas
Yes! Live & Invest Overseas - The World Is Alive With Opportunity For Fun And For Profit Find Out How You Can Benefit With The Help Of The Globe's Savviest Team Of Overseas Adventurers
Writers Insider Guide To Paris
Writers Guide To Paris
For Novelists, Journalists, Poets, Dreamers and Doers Alike! Perhaps you are fed up with your 9 to 5 regime; perhaps you are a writer needing a new perspective...  - If so, this is the guide you've been looking for
Citizens from countries such as the United States which have establishment treaties with France have an additional advantage in that they have a right to establish themselves permanently in France, provided they respect immigration procedures. Applicants must prove that they have means sufficient to support themselves during their projected stay in France. Counsel is most useful in this context to ensure proper compliance and avoidance of delays.

Countries whose citizens need visas to enter France

Most countries fall into this category. Even to come to France as tourists, citizens of these countries require visas. The visas are generally for one short visit and, should the goal be anything else, the assistance of counsel is especially useful.

What convinces the authorities to issue a visa to applicants from this group of countries is the likelihood that the applicant will in fact return to his country of origin , and not become a clandestine. Accordingly, it is important to demonstrate strong ties to the home country (family, high income, wealth of assets, professional status, etc.)

WHAT KINDS OF WORK CAN FOREIGNERS DO?

French immigration practice classifies working relations in terms of "employment", "independent professions", "commercial activities".

Depending on the classification of the projected activity, the procedures of admission are more or less complicated and prolonged. 

Essentially the most difficult category in which to seek admission corresponds to employment activities.

Except in cases of executive - level salary, the existence of any unemployment in the relevant region and for the specific activity in question will preculde approval of the application.

Offshore Resources Gallery
Offshore Retirement
Retirement Planning Simplified
“Early retirement is a lifestyle, not a vacation.” Billy and Akaisha Kaderli ‘retired’ at the age of 38 and have never looked back with regret.
Second Passport Now
Enjoy all of the benefits that go with having a passport from a nation that respects your privacy, your dignity, and your freedom to make individual choices.
Liberal professions can be very difficult of access for foreigners where local academic and/or professional qualifications are required for admission (medical, legal, accounting, engineering, architecture) whereas other activities not subject to such professional requirements undergo a simplified, speedier examination process (writers, artists, composers, consultants, teachers). Still the Uruguay Round agreement with respect to services, at least guarantees national treatment to most purveyers of services.

The performing arts are generally unionized and any performing is considered to be employment.

It is the employer who initiates the application process, and while applications for specific events or a limited number of engagements are processed quickly and successfully, long term contracts are less frequent in the trade and also less likely to be approved by the authorities.

If the contemplated activity involves commerce (buying and selling goods or services), the admission procedures will generally culminate in the issue of a special "merchant's" card in addition to the residency card. The merchant's card adds layers of administrative review and multiplies the risk of delay. Among those candidates who will require merchant's cards are the chief executives of limited liabity companies and commercial agents.

In practical terms, it is difficult for business people other than managers of major international companies to obtain the authorizations to launch an entirely new commercial business in France. In particular, the immigration application will be reviewed by the Chamber of Commerce where the new company is to carry on business. Applications therefore will include a convincing demonstration of the viability of the project. 

All applicants to carry on business must prove that they dispose of financial means bearing a reasonable relation to the business proposal.

BUSINESS ORGANIZATIONS
Those applicants intending to buy and sell goods or services will usually prefer to establish a limited liability company. The main alternatives are the closed company ("société à responsabilité limitée") and the public corporation ("société anonyme"). The former will be preferred by most entrepreneurs. For foreign corporations, the choice of a local corporate vehicle will depend on a variety of considerations (expected size of the activity in France, closeness of the ties between the headquarters and the French unit, taxation). For most practical purposes, French companies can be made to function like their counterparts in other major developed countries.

French law also recognizes various forms of partnerships: general partnerships ("société en nom collectif"), limited partnerships ("société en commandite") and limited partnerships with publicly distributed equity participations ("société en commandite par actions"). These forms of partnership can be made to work much like their equivalent in other developed countries. Their main features are the unlimited liability of the general partners for partnership debts and their fiscal transparency.

A variety of "civil" company forms are available and find useful applications for instance in the real estate sector and the liberal professions.

CURRENT PRACTICES GOVERNING COMMERCIAL LEASES
There are two main types of commercial leases: 23-month leases and 3-6-9-year leases, so called because of the importance of their triannual anniversary dates for the rights of the tenant. In principle 3-6-9 year leases invest the lessee with certain rights akin to property including the right to transfer the lease interest and the right to be indemnified if evicted at the expiration of the lease. Traditionally, the 3-6-9 year leases were associated with relatively large capital payments (key money) to the prior tenant and/or the owner and correspondingly small rental payments. The current difficulties experienced by French retailers, and the over-supply of offices have created a buyer's market in which contracts are increasingly negotiated to the advantage of the tenant. With increasing frequency, landlords are granting so-called American leases (no key money but higher rents). Even more than other areas of French law, commercial leases are complicated and elementary prudence will cause most foreign business people to consult a specialist before signing such contracts.

HOW ARE PATENTS, TRADEMARKS, DESIGNS, KNOW HOW, COPYRIGHTS, SOFTWARE AND SEMI-CONDUCTORS PROTECTED IN FRANCE?
France is party to most international treaties governing intellectual property, including the recent Uruguay Round Agreement with respect to Trade related to Intellectual Proprerty rights (TRIPs). As a result holders of patents and trademarks outside of France in countries party to the same treaties as France (generally the major trading nations including members of the European Union, United States, Canada, Japan) will have 12 months from first publication of their patent (6 months for trademarks) during which they will have a priority of registration of such patents (trademarks) in France. 

An important difference between French patents and those in many other countries is that patent applications are reviewed by French authorities (the Institut National de la Propriété - INPI) for novelty or newness but their inventive nature is not considered by the authorities (whereas in the United States, patent applications are reviewed for both novelty and inventiveness). In this sense, it is sometimes said that a French patent is worth less than an American patent in so far as the French patent can be more easily attacked, in particular for lack of inventiveness.

Rights to trademarks in France are best protected by registraton with the INPI. Prior use is not required to obtain registration. Moreover the first to register prevails over the first to have used the trademark without registering it, except where nationally renowned but unregistered names are concerned. Words, numbers and symbols can be protected while geographic designations are subject to specific regulation to prevent false or misleading claims of origin. Both product and service marks can be protected. At the time of registration, the INPI does not review for novelty or distinctiveness, which are open to contest after the fact by interested parties.

The right to use a design is based on authorship. Two independent creators of the same design could have coincident rights. To prevent others from using an original design a creator is well advised to publish it (either with the INPI or in the relevant professional and general press) in such manner as to put potential usurpers on notice as to the design. A recent case in which Ralph Lauren was found liable for counterfeiting Yves Saint-Laurent's tuxedo for women's couture illustrates the seriousness of the efforts deployed to combat abuses of creators. 

Know how consists of confidential and useful information which the holder diligently defends from disclosure. Know how is transfered by contract. Franchising is subject to regulations which limit use of this strategy. In particular, prospective franchisors must have a proven record of success in operating stores in France before launching their franchise network. Payment to the franchisor is most often made in the form of an entrance fee and royalties.

Copyrights are also protected based on authorship. In France the authors of litterary, musical, cinematographic, audiovisual, graphic, architectural and similar works can protect their creations. The claim to ownership of the copyright is manifested by a banner on the work stating the name of the author. The rights obtained by authors are the exclusive economic rights (to represent, reproduce, and distibute the work) and the moral rights (the right to be cited as author, the right to impose the integrity of the work). While the former can be transferred either in an unlimited or a limited manner (in time, space, market, use, etc.), moral rights are inalienable (subject to reasonable exceptions in the film industry). 

In French law, computer software is protected as a separate category of intellectual property. There is considerable ambiguity in the case law about the basis of ownership of software, specifically whether it need be inventive (not obvious to a practitioner), rather than merely original as that notion is understood in copyright law. France is party to the major international conventions relating to software and semi-conductor protection.

HOW TO COLLECT UNPAID BILLS
Claims against French debtors can be brought before the French courts. In doing so, the foreign plaintiff should definitely seek counsel from a French lawyer.

Claims against French debtors will often also be subject to jurisdiction of the courts of the country of the plaintiff. In such cases, the question will be whether judgments of the foreigner's court can be enforced with reasonable expediency in France. The answer is affirmative provided the court having pronounced the judgment respected the elementary rules of procedural justice (notice to the defendant, right to be heard, impartiality of the judges) and provided also the foreign judgment is not contrary to French public policy.

The successful pursuit of claims against merchants can actually be quite expeditious in France where there is no serious defense against the claim. Against merchant debtors there is a procedure which does not involve any court appearance (and so is affordable even for relatively small claims). Provided the defendant does not dispute the claim, the delay for recovery can be as short as two or three months from the date of initiation of the procedure. Spurious defences are discouraged by charging to the abusive defendant an increased award of compensation.

TEXTS OF LEGAL SOURCES
Translations into English may be ordered by e-mail. Payment in advance by check or bank transfer will be required. Translation fees are F 1.00 per word in French. Estimates will be given free of charge. Daniel Arthur Laprès - lapres@easynet.fr -

Article Index ~ France Index

Contact  ~  Advertise With Us  ~  Send This Webpage To A Friend  ~  Report Dead Links On This PageEscape From America Magazine Index
 Asset Protection ~ International Real Estate Marketplace  ~ Find A New Country  ~  Yacht Broker - Boats Barges & Yachts Buy & Sell  ~  Terms Of Service
© Copyright 1996 -  EscapeArtist.com Inc.   All Rights Reserved