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Relocate your UK Company to France after Brexit
Updated on Wednesday 08th June 2022 Rate this article
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Given that the United Kingdom (UK) is no longer a part of the European Union (EU), numerous UK based businesses and foreign companies operating in the UK have decided to stop their operations in the UK and relocate to another EU country. The decision is mainly influenced by the new procedures imposed when trading between the EU and the UK, but also on the tax consequences applicable to companies. Thus, if you want to relocate your UK company to France after Brexit, you can always rely on our team of consultants for in-depth legal representation. Our team of specialists in company formation in France can help you understand the process of relocating a business and can help you navigate through the incorporation procedures applied under the French commercial laws. We can also advise on international removals from UK to France.
How can investors relocate a UK business to France?
Regardless if you are a UK tax resident who has set up a business in the UK or if you are a foreign investor who has started a business in the UK, you must follow the same legal procedure if you are interested to relocate your UK company to France after Brexit.
The first step is to close your business operations and formally close the legal entity under which your UK company operates. This implies that you will inform all the institutions regulating the activity of your business and that you will wait for the issuance of various documents that will legally confirm that the company is no longer active in the UK.
After this, you will be able to open a company in France following the national incorporation steps. You must know that France and the UK follow the same corporate rules in most of the cases and, as a general rule, you will be able to find in France the same company types that are available for registration in the UK. This means that you will be able to register the same company type that you used when developing a business activity in the UK, if this is something that is of interest for you when investing in France.
From a legal point of view, our team of consultants in company registration in France can represent you in all the steps, such as registering the legal entity with the local institutions, obtaining the business permits, licenses and approvals that might be necessary for you business sector and so on. If you have various corporate assets that you want to relocate from the UK – such as office furniture, technical devices and equipment, you can also send an inquiry to us for international removals from UK to France.
The service for international removals from UK to France can also be requested if you want to relocate with you family and bring in France various household items, from furniture to more delicate items. Depending on the type of good that is relocated, you can request storage services as well.
The Labor Law in France
In order to hire employees, a French company is required to comply with various laws, among which the Labor Code is the most important as it defines the relations between an employer and its employees.
Companies in France are not biased when it comes to the ratio between nationals and foreigners working for them, as the number of expats living in this country is rather large. Moreover, these contribute to the French workforce with an important share.
The French Employment Law does not distinguish between hiring French nationals and foreign citizens, as long as the last category are legal residents of this country. This means that a foreign citizen must have a residence permit in order to legally live and work in France (this requirement applies to citizens of non-EU and non-EEA countries). EU citizens have the right to live and work in France without having to apply for such permits, however, they must register with the local police department in the city they live in within an established period of time from entering the country.
The French Labor Code provides for the following when it comes to hiring employees:
- all work relations must be based on an employment contract that can be for a definite or indefinite period of time;
- employers and employees can negotiate the terms of these contracts;
- the total number of work hours per week in France is 35, however, exceptions apply;
- companies are allowed to conduct background checks on their future employees’ qualifications and work experience;
- all workers are entitled to a minimum wage as established by law (the last modification to the monthly minimum wage was made in 2016).
It should be noted that recently, the French Labor Law has gone through substantial changes which mainly reflect collective employment agreements.
If you want to open a company in France and want to hire employees, you can discuss all legal matters of both procedures with our local specialists.
The composition of the French workforce
The labor force in France is takes into account persons who are employed by local companies, those who are unemployed, as well as those who are searching for jobs from the first time. There are also some exceptions, among which the following are not included:
- - unpaid people who conduct an activity;
- - family workers;
- - students.
In France, it is legal to work starting with the age of 15, and the size of the work force is also influenced on the number of seasonal workers during specific periods of the year. Also, the French labor force is very diverse, as it is made of both highly skilled and non-skilled employees depending on the needs of local businesses.
If you have any questions about the possibility of hiring highly skilled personnel, our company formation agents in France can offer more information. Also, it should be noted that for company directors, specific requirements apply for those of private and public entities.
French regions with the highest density of workers
Just like in any other country, wealthy regions tend to attract large numbers of people in search of work. It is also the case of France, where the regions of Ile-de-France which encompasses Paris, Essonne, Val-de-Marne and Yvelines, to name just a few of its divisions, is the most appealing part of the country that attracts both French nationals and foreign citizens seeking employment.
Ile-de-France is home to more than 12 million citizens, representing a little over 18% of the entire population of the country and is also made of people with an age of 40 (54% of them). The region also accounts for 30% of France’s Gross Domestic Product and, at the same time, it is one of the important contributors to EU’s economy.
If you want to set up a business in this region, our company registration consultants in France are at your service.
Why start a business in France?
France is one of the leading economies in Europe. There are several EU countries that provide the most attractive advantages for investing as a foreign businessman, but France has its own particularities, related to the quality of its infrastructure, the number of foreign companies already operating here, the quality of the workforce and others. If you want to open a company in France, some of its highlights are the following:
- • foreign companies are well represented in France – the country has more than 28,000 foreign companies, with 21 new foreign companies entering the French market each week (in 2017);
- • France is a leading global power – it stands as the 7th largest global economy, with a GDP of $2,762 billion (in 2019);
- • according to the Ministry of Foreign Affairs, France is a leading economy in the startup industry, accounting for 691,000 startup businesses in 2018;
- • one of the reasons to relocate your UK company to France after Brexit is the duration of the incorporation process (in France, it takes 3.5 days, while in the UK, it takes 4.5 days);
- • France invests 5% of the GDP in the education of its population, which resulted in one of the most qualified workforce.
Another compelling reason for which why you can easily start the process of company formation in France is that foreigners can easily set up a business here and, more importantly, foreign investors can appoint foreign directors as well, as there aren’t any restrictions with regards to the nationality or the residency of the director, as it is the case of other countries.
If you need further information on the process of company formation in France, we invite you to contact our team of consultants. You can also address to us if you need advice on international removals from UK to France or any other information with regards to relocating a business in this country.
Meet us in Paris
Call us now at +33 9 73 22 01 51 to set up an appointment with our lawyers in Paris, France. Alternatively you can incorporate your company without traveling to France.
As a BridgeWest client, you will beneficiate from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in France.
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