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Articles

French Legislation on Foreign Investments

Updated on Wednesday 13th December 2017

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French-legislation-on-foreign-investmentsFrance has always ranked among the largest economies in the world, and one of the largest markets in Europe. These two characteristics together with the fact that this country occupies the third positions in the world when it comes to the easiness of doing business, have made France one of the most attractive countries when it comes to foreign direct investment. In 2014, the Government issued a new decree establishing new directions related to the laws on foreign investments in France.

Our French company formation agents can assist foreign investors who want to open companies here.

New foreign investment rules in France

In order to ease the access of foreign enterprisers on the French market, the Government has issued a decree through which new regulations have been enabled for both EU and non-EU investors. First of all, the term “foreign investment” has been redefined and now applies based on the country of origin of the investors. Secondly, the list of investment sectors has been expanded to 11 French industries. However, for 7 of these industries prior approval from the Ministry of Economy (MINFEI) is required.

Even if the new legislation on foreign investments provides for more stringent conditions, certain overseas companies are not required to apply for approval with the MINFEI. These are:

  • -          companies in the same corporate group in which a common shareholder owns more than 50% of the voting shares;
  • -          investors who have already received authorization for investing in a sector and now apply for a second approval.

Our company registration agents in France can offer more information on the new laws on foreign investments.

Industries open to foreign investments in France

According to the French laws on foreign investments, the following industries are open to overseas enterprisers and companies seeking to set up subsidiaries or branch offices here:

  • -          tourism;
  • -          automotive;
  • -          software;
  • -          telecommunications;
  • -          research and development;
  • -          biotechnology;
  • -          electricity and renewable energy.

France also offers a great number of incentives and tax exemptions to foreign investors and is still considered one of the less restrictive states in the world when it comes to foreign investment legislations.

For complete information on the incentives available to foreign investors, please contact our company incorporation consultants in France.

 

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