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Trading in France
Updated on Friday 20th August 2021 Rate this article
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France is one of the most important traders of the world, for both import and export activities. This is why opening a trading company in France can provide multiple advantages for both local and foreign businessmen. The list of goods exported by France is extensive, but some its main goods that are in high demand on international markets are: vehicles and aircrafts, pharmaceuticals, electronics and various food products, among which wine and cheese are the most famous. Investors who want to open a company in France as a trading business can address to our team of consultants if they legal representation during the registration process; at the same time, our team can help businessmen in the process of obtaining business permits, register for VAT and obtain an EORI number, to name just few of the ways through which our specialists can help ease the incorporation formalities.
What is the policy on trading in France?
Given that the global market conditions are in constant change, the governments of countries that develop trading activities will impose different trading policies, in accordance with the changes of the market and the trading trends. France is a country which has a liberal approach towards trading and it sustains local businesses in the process of accessing international markets.
One of the key aspects that should be taken into consideration by those who want to open a trading company in France is that the local authorities aim to ease the access of small and medium-sized companies on the trading market, a market that is generally characterized by large companies that have complex strategies and can assure large trading volumes.
While doing this, the procedures for trading in France are created with the purpose of protecting the local market, so that the French production of goods and services will not be weakened by an import of goods that is above the market’s real needs.
With regards to trading in France, investors must be aware that the local institutions want the participants in trading activities to develop such operations taking into consideration environmental factors; according to Ministry of Europe and Foreign Affairs, trading in France must be done by increasing the transparency of the industry.
How can one open a trading company in France?
The process of opening a trading company in France follows the same model that is prescribed at a national level for the registration of a legal entity. This means that the investors will have to follow the procedure for company formation in France, which is mainly related to the following:
- • select a suitable company name, that needs to meet specific requirements;
- • select the legal entity that is most suitable for your business plans, capital and others;
- • select the business activities that you will carry through your company – here, you must select trading in France or the import or the export of goods by choosing an appropriate NACE code;
- • appoint company directors, who must be natural persons;
- • find a suitable location where the company can have its headquarters and its registered address (a compulsory procedure for company formation in France, and which can be completed through the services of a virtual office).
What is the data on trading in France?
Given that France is one of the largest markets regarding trading, this can also be reflected in its gross domestic product (GDP). It is estimated that trading in France accounts for 65% of country’s GDP, according to the data of the World Bank for 2019. In order to have a clear image on this subject, our team of consultants in company registration in France have prepared a short list on import-export activities:
- • the import of goods in 2019 had a value of $653,807 million, while the export of goods accounted for $571,465 million;
- • the import of services in 2019 accounted for $262,821 million and the export of services, for $287,084 million;
- • the volumes of exports of goods and services for 2021 is estimated to increase by 10.5% compared to 2020, when the trading in France was very low due to Covid-19 restrictions, while the imports of goods and services for 2021 is expected to grow by 7.4%;
- • the highest share of exports from France are sold on the German market, which accounts for 14.1% of all exports, while Germany is the top importer of France (accounting for 14.8% of all imports);
- • the top exported products in 2019 were represented by powered aircraft, which accounted for 7.9% of all French exports.
If you need more information on how to open a trading company in France, you can contact our team; our specialists in company registration in France are ready to assist you in any legal matter and can help you evaluate the initial investment that will be required for a company involved in trading in France.
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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