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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.

b. Consultancy in Management of Firms and Civil Engineering
All individuals, whether French or foreign, can establish a firm of consultants.
This is why there is a proliferation of Anglo-Saxon management consultant firms in Paris. The field of activity of these firms is wide and mostly include auditing, counsel in matters of strategies (product - market) and counsel in matters of organization.

This is also true in the field of civil engineering. There are no laws, rules or regulations which limit the use of the title of Consultant Engineer, unlike the diploma of engineer obtained from a particular university which is strictly regulated.

However, the members of these professions have sometimes felt that the absence of rules and regulations was a negative factor, and have founded organized professional bodies with a code of deontology.

This is the case with the Chambre Syndicale des Ingénieurs-Conseils (Consultant Engineers Committee), and the Chambre Syndicale Nationale des Conseils en Recrutement (Recruitment Consultants National Committee).

There is no mandatory obligation for consultant firms to take malpractice insurance coverage. Nevertheless, these firms are strongly advised to do so, and it is mandatory in order to become a member of certain associations.

In the particular case of recruitment of consultants, the activity, even though not governed by any laws, is curtailed by the monopoly which is conferred to the Agence National Pour l'Emploi (A.N.P.E.) - (National Agency for Employment) by a Government Order of 1945 regarding employment.

Where an intermediary acts as the authorized agent of a person seeking employment (whether unemployed or not), on his behalf, with a person offering employment, the A.N.P.E.'s monopoly is infringed. The recruitment consultant who acts as the authorized agent of a firm, providing it with candidates does not infringe the monopoly of the A.N.P.E.

Recruitment consultant firms may seek candidates by (i) advertising or (ii) direct contact:

(i) Advertising is usually done through newspapers.

The consultant, in this case shall have to comply with the statutes and regulations relating to employment ads in the newspapers (Code du Travail - Labor Code, Article L 311-4).

In particular, it is prohibited to advertise a job offer:

indicating a maximum age limit (except where a law, rule or regulations contains a requirement regarding age)
containing false allegations (e.g., duration of employment, remuneration, place of work)
discriminating on the basis or origin, race, religion, or sex, or written in a foreign language or with foreign expressions having equivalent translations in French and concerning work carried out in France. There is, however, an exception for foreign language publications.

In addition, the consultant must give to the Director of the newspaper the name, corporate names, and address of the anonymous client for whom the advertisement is published.

(ii) The recruitment consultant also operates by direct contact, that is to say that he or she acts as a head-hunter.

Certain precautions must be taken in order to ensure that such a practice does not amount to unfair competition.

It is constantly stated through case law that to bring an employee to quit his employment amounts to unfair competition if the person was employed under a non-competition clause or if the incitement to leave is accompanied by actions which are prejudicial to the new employer. In the latter situation, to entice a worker to leave by offering him abnormal advantages with a view to weaken the organization or to embezzle the assets of a rival company, amounts to unfair competition.

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