The creation of a joint venture in France involves at least two parties or business entities. A joint venture is usually chosen by businessmen in order to get the most out of a certain undertaking. In a joint venture, the parties share ownership, risks, profits, and management of the entity created. If you want to open a company in France, a joint venture would be a good choice.
If you set up a company in France as a joint venture, you will have many advantages. One of them is that operational cost is low. Both organizations involved in the French joint venture will share the costs of conducting the business. They can share the costs equally or set the sharing on their joint venture agreement. Another advantage is the maximization of profits. In a joint venture, all the resources of the parties involved will be used. This results to better production and marketing.
Joint ventures are a unique form of business organizations. As such, there is no specific French law that regulates them. It all depends on the kind of joint venture you enter in France. Contractual joint ventures are regulated by the general laws on contracts. Corporate joint ventures are generally covered by the Civil Code and Commercial Code. For company formation in France, make sure to decide on the type of joint venture you will enter.
Unlike regular business organizations, like joint stock companies or limited liability companies, the creation of joint ventures in France does not result in a distinct and separate legal personality from the parties comprising it. This is because joint ventures are entered only for a specific purpose and for a limited undertaking. You can open a company in France as a joint venture for your one time projects.
When you create a joint venture in France, like any other business organization, it must be registered with the French Trade and Company Registry. When the joint venture operates independently of its parent companies, it becomes subject to the supervision and control of the French Competition Authority. If the profit of the joint venture exceeds 150,000,000 euros, it will also come under the Competition Authority.
Please contact us so we can assist you to set up a company in France for a joint venture.