introduction ownership forms expertise			The following is an outline of points to consider when setting up a business in France. Click here for a more detailed guide. With few exceptions, foreign investments in France are not subject to prior administrative control. As EU members, UK citizens are free to set up any commercial business and to manage a French company. An individual or a company deciding to set up a business in France will benefit from a secure legal framework that offers a large variety of options from individual ownership to the listed company.

While individual ownership remains the most common form of business, this appears only suitable for businesses of limited levels and risks, since all investments will be risked to meet business liabilities. In addition, the evolution of an individual business is virtually impossible due to the high level of taxes and costs of conversion into any corporate form. Thus, the common practice is to set up the business, even of a small size, through one of the corporate forms provided by French law. Setting up a company gives birth to an independent legal entity having its own assets, separate from that of its owner. In case of insolvency and unless management faults can be proven (faults are never presumed), the investor's assets remain safe from the business' creditors.

The most common corporate forms are the "Société à Responsabilité Limitée (SARL)", the "Société Anonyme (SA)" and the "Société par Action Simplifiée (SAS)", while premises are generally held through a "Société Civile Immobilière (SCI)". The choice of legal framework will depend on the investor's development strategy and will take into account various aspects such as: Financial commitment (capital amount differs from one corporate form to another) Taxation (corporate income tax is the rule, but personal income tax can be an option in certain circumstances) Social security (independent workers or employees regime also depend on the chosen corporate form)

With a team of four experts, two of whom are fully qualified French Avocats, we can provide advice on these matters and assist in the somewhat complex registration procedure with the local authorities (tax and social administrations, Chamber of Commerce, Court of Commerce). Having over 10 years practice of French business law, our lawyers can also assist in your business' first steps: loans, leaseholds, recruitment, etc. For further information, please contact: Patrick Delas   Tel: +44 (0) 20 8394 6387   delasp@russell-cooke.co.uk