Set Up a Business for Sale of Motor Vehicles in France

France has various performant industries, among which automotive is quite significant considering the large number of vehicles exported by some of the famous manufacturers established here. Those who want to operate in the automotive industry can set up various types of businesses, among which one of the most profitable is that of selling motor vehicles in France and abroad.

If you want to open a company for selling motor vehicles in France, you can rely on our company formation specialists. We can help with the company registration and licensing procedures of such business in France.

Automotive legislation in France

While most of the laws in the automotive sector in France targets manufacturing companies, those who set up companies for the sale of motor vehicles are required to comply with Directive 2007/46/EC which has been transposed in the national legislation in 2009 and which provides for French companies to sell motor vehicles, trailers, units and other components for motor vehicles approved under this Directive.

Other laws which need to be respected by companies selling motor vehicles in France are provided by the Ministry of Transport which also the right to verify specific aspects related to the manufacturing and sale of automobiles.

Another law which provides for the use of motor vehicles is the Highway Code in France.

A new Directive on testing new motor vehicles was enabled in May 2018 and will enter into force in September 2020.

For complete information on the legislation related to selling motor vehicles, you can rely on our company formation advisors in France.

How to register a French business for selling motor vehicles

Both local and foreign entrepreneurs can set up companies for the sale of motor vehicles in France as long as they respect the Company Act. Through these companies they can sell motor vehicles in France and other countries based on the special permits obtained with the relevant authorities.

1. In order to register a company for the sale of motor vehicles in France one must:
2. select an appropriate business form (the limited liability company is the most suitable);
3. prepare the incorporation documents which must specify the object of activity of the company under Section G of the NACE codes;
4. the incorporation documents must be filed for approval with the French Trade Register;
5. the company must then register for taxation and obtain a VAT number with the tax authorities;
6. the company will then need to obtain the necessary licenses for selling motor vehicles.

Our French company formation consultants can help you prepare all the necessary documents for starting a business for the sale of motor vehicles.

NACE classification for selling motor vehicles in France

Local and foreign companies selling motor vehicles in France must have as a primary object of activity the NACE code G.45.1 which provides for the sale of motor vehicles. Then it can establish other secondary objectives for the retail and/or wholesale trade of various types of auto vehicles, but also for the repair of such vehicles.

Types of companies selling motor vehicles in France

Those who want to operate a business for selling motor vehicles in France can set up various types of companies which operate as dealerships, dealer networks or agents. They can also operate as subsidiary companies in France. A company can also enter various types of agreements, such as franchises and joint ventures.

It is also possible for a company to sell second-hand vehicles in France, however, it will need to do that under the supervision of the manufacturer.

No matter the way a French company operating in the sale of motor vehicles sector operates, it must follow the regulations imposed by the European Commission and the Competition Authority in France. These bodies will usually regulate price-related and compliance matters.

If you want to open a company in France and sell motor vehicles through it, you can rely on our local agents for assistance in registering it.

The automotive industry in France

France is home to several large automotive manufacturers which export motor vehicles all over the world. This is why this sector is one of the most performant in the French economy.

According to various statistics:

• - in 2017, the global production of French car manufactures accounted for 7,8 million passenger vehicles (17% higher than 2016);
• - on a 10-year basis, between 2007 and 2017, the production levels in the industry increased by 30%;
• - at the level of January 1^st 2018, France had a total of 39,5 million of motor vehicles registered;
• - currently there are around 150,000 companies operating in the automotive industry in France.

For assistance in setting up a company for the sale of motor vehicles in France, please contact our agents.