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TABLE OF CONTENTS

INTRODUCTION :
The European Union (EU)
The European Free Trade Area (EFTA)
The forthcoming accession of the Central and Eastern European states
Transatlantic economic relations

Part 1 - General Comments Concerning the EU

A. From the Treaty of Rome to the Treaty of Maastricht

B. The Institutions of the EU
a. The Parliament
b. The Council
c. The Commission
d. European Court of Justice
e. Economic and Social Committee
f. Comity of Regions
g. Economic and Monetary Union (EMU)
C. Legislative Acts
D. The Common Market
a. Free Movement of Goods
b. Free Movement of Services
c. Free Movement of Persons
d. Free Movement of Capital
e. The Schengen Agreement

Part 2 - Establishing in France

A. Different Forms of Presence

1- Basic setting-up
a. Setting up without officially registered representation
b. The liaison office : Exempt from corporate income tax and VAT
c. Branch offices : A good temporary arrangement

2- Limited Liability Companies
a. Société Anonyme (SA)
b. Société Anonyme Simplifiée (SAS)
c. Société à Responsabilité Limitée (SARL)
d. Entreprise Unipersonnelle à Responsabilité Limitée (EURL)

3 - French Partnerships and Similar Structures and Non-corporate Contractual Arrangements
a. Société en nom collectif (SNC)
b. Groupement d'intérêt commun (GIE)

4 - Distributorship Agreements
a Distributorship Agreement
b. Commercial Agency Agreement
c. Franchise Agreement

5 - Joint Ventures in France

B. Investment Incentives Available

1 - The "Prime d'Aménagement du Territoire" (P.A.T) granted by the DATAR
2 - The Regional Grant for New Businesses (P.R.C.E.)
3 - The Redevelopment Agencies
4 - Preferential Tax Regimes
5 - Temporary exemption from the Business tax
6 - Tax exemptions are available for acquisitions of ailing firms
7 - National social measures
8 - Research & Development
9 - Local financial support
10 - Export guarantees and financial assistance

C. Conditions Required for Establishing Presence

a. The Export of Capital to France
b. The Export of Goods to France
    (i) Customs regulations
    (ii) Value Added Tax (VAT)
    (iii) Exemptions from customs duty and the VAT
c. The Export of Services to France
d. Conditions imposed on non-EU workers in France
    (i) long-term Visas
    (ii) Business Permits
    (iii) Social Welfare; Employment Conditions

D. Certain Rules Concerning Some Specific Fields of Services

a. Architects
b. Management Consultants
c. Audio-Visual Communications
d. Data Processing
e. Advertising

 

A Guide to Exporting to Europe
An Advisory Paper Presented by the International Law Firm
SCP Weissberg - Gaetjens - Ziegenfeuter
Copyright 1997-2000 WGZ


II. ESTABLISHING IN FRANCE

D. Certain Rules Concerning Some Specific Fields of Services.

a. Architects

This profession is strictly regulated in France. The laws, rules and regulations tend to protect the monopoly of architects on one hand, and the title of Architect on the other (Law 77-2 of January 3, 1977 amended by the Law of July 12, 1985; Ordinance 78-67 of January 19, 1978; Ordinance 80-217 of March 20, 1980, establishing a Code of Professional Responsibility of Architects).

(i) Monopoly

The architect, according to French Law, is defined as the prime contractor to whom the owner must address himself for any construction or renovation job which requires a building permit.

In all cases where a building permit is necessary (i.e., for all new constructions, for all changes in the purpose of an existing construction or all modifications carried out on its volume or its outer appearance), the architect has to establish an architectural plan before such permit can be issued.

Such a plan consists of drawings and documents defining "the positions of the building, their content, organization and volume, as well as the choice of materials and colors".

The execution of the work may be entrusted to a contractor, but the architect must always ensure that the project is being followed as it has been approved by the authorities who have issued the building permit.

Furthermore, the architect may participate in the following:

- Town planning and development, including preparation of drawings
- Allotment of land
- Preparation of programs
- Consulting of firms
- Preparation of public calls for bids
- Coordination and direction of works
- Providing assistance to owners
- Consultancy and expert appraisal
- Teaching

Architects are required to obtain insurance covering their professional responsibility.
They can group themselves and form a partnership with others of different means or professions, or form a corporation for which they will work.

In the latter case the partners must comply with the following rules:

- The shares of the company must be nominative shares
- More than 50% of the nominative capital must be held by architects
- The membership of a new partner is subject to the prior agreement of the General Meeting of shareholders. The decision must be taken by a two-third majority.
- None of the partners can hold more than 50% of the nominative capital
- The chairman of the board of directors, the general manager (if he is alone), at least half of the managers and members of the board of directors, as well as the majority of the board of directors and administrators must be architects.

(ii) Protection of the title

The illegal use of the title of architect is subject to criminal sanction.

To ensure the protection of the title, there is a professional body which guarantees the application of professional rules and regulations. It has the authority to take disciplinary action and controls the access to the profession through inscription on the Roll.

Furthermore, a code of ethics enumerates the architect's obligations.

Thus, in principle, to join this profession, three conditions must be fulfilled:

- To possess one's civil rights and provide evidence of good moral character.
- To have obtained a degree, certificate, or other title recognized by the French government.
- To be French, or the national of another Member State of the European Community, or the national of a third country which has signed a convention of reciprocity with France.
- There is no such convention between France and Canada, or the United States. - A North American cannot therefore practice as an architect in France, unless he has dual nationality, one of which is of an EU country.

In the latter case, the degree he or she holds must appear on the list of foreign degrees recognized as being equivalent to French diplomas by an order of the Ministre de l'Urbanisme, du Logement et des Transports (Ministry of Urbanism, Housing and Transport).

Nevertheless, the Law of January 3, 1977 and the Ordinance of January 16, 1978, mention four exceptions to the condition regarding French nationality:

1. A foreign architect can be authorized to practice by a decision of the Ministre de l'Urbanisme, whose decision is taken after hearing the opinion of the Ministre des Relations Extérieures (Secretary of State). But in practice, the Ministre des Relations Extérieures bases his decision mainly on the existence of a convention of reciprocity with the country of origin of the candidate. The situation is quite unfavorable for Canadians as the possibilities for French architects to practice in Canada are very much restricted.

2. The Ministre de l'Urbanisme may allow a foreign architect to register in France, upon presentation of professional references, and after taking into account the opinion of a national commission. But this rule only concerns exceptional cases, where the candidate has already completed works of great importance.

3. The Ministre de l'Urbanisme can authorize an architect to carry out a specific project in France, either after hearing the opinion of the Conseil National de l'Ordre des Architectes, or as a result of a contest of which he or she was the prize-winner.

Within this context, then, the authorization of the Minister is practically automatic.

It is to be noted that competitions are advertised in the bulletin of the Union Internationale des Architectes (U.I.A. - International Union of Architects).

4. Finally, the law provides for persons having effectively practiced as architects in France before 1977 to be recognized and approved by the Ministre de l'Urbanisme, after receiving the opinion of a regional commission, and on these grounds to be authorized to work as an architect.

However, this procedure seems quite impractical at the moment as 2,000 applications have already been submitted, and l'Ordre des Architectes is not at all favorable to this procedure.

The application to register should be made to the Conseil Régional de l'Ordre des Architectes of the area in which the candidate wishes to practice.

In cases 1, 2, and 3, however, if the candidate is the prize-winner of a competition, the application should be made directly to the Direction de l' Architecture du Ministère de l'Urbanisme.

In all cases, the application must be accompanied by the documents which prove that the candidate fulfills the statutory conditions.

In practice, North American architects in France practice in partnership with French architects. Indeed, the real problem is not the access to the profession, but the lack of knowledge of French rules and regulations and of French practice, especially regarding the employment of salaried workers, the making of contracts, the technical regulations (control of materials, etc.) and the possibility of entering into a partnership with an engineering firm.

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