France

Taxes

Direct Taxes :

All the taxes below depend on the turnover, the location of the company, and the number of employees.

• Property taxes and apprenticeship taxes.

• Participation of building effort.

• Profit taxes.

• Contribution on the added tax.

• Property subscription of the companies.

• Social and solidarity contribution.

Indirect Taxes :

The value added tax is an indirect tax on the consumption which concerns all the goods and services consumed or used in France. The companies collect taxes for the count of the State: they charge the VAT to their customers, at the rate of 19, 6% (normal rate) or 5, 5% (reduced rate) and then transfer it to the Treasury, after deducing the VAT paid on their own purchases. So it's the consumer who supports the VAT and not the companies.

France

Financing the company A company often needs some aid in order to raise start-up money. So it can ask for loans to banks or organizations like :

Banking Loan to Firms (Prêt Bancaire aux Entreprises in French). This loan is given to

companies which their turnover does not exceed 80 millions €. It can finance 70 % of an

investment and the borrower has from 5 to 12 years to pay back. The interest rate is fixed by

the bank.

Loan to Company Creation (Prêt à la Création d’Entreprise in French). This loan is given to

firms in creation, created or taken back for less than 3 years, with less than 10 employees and

which haven’t got another loan. It must be associed with a bank loan between 2000 € and 7000

€, payed back in more than 2 years. The Loan to Company Creation has the same interest rate

as the bank loan and the borrower has to pay the loan back in 54 monthly payments (5 years).

The company can also asks loans or financial aid to :

The European Union.

The State.

The region where the company is located.

The departement where the company is located.

The city where the company is located.

Private financing (rarely).

Public organizations.

In order to pretend to these subsidies, the company must :

Ask the donor after fulfilling some conditions.

Sign a contract with the donors.

Fulfil a complete file.

Have the employee’s agreement (for training of the employees).

These aids help the firm to raise the start-up money :

If the firm is an individual company, it doesn’t need to have a minimum start-up money.

If the firm has a single partner (EURL) or between 2 and 50 partners (SARL), it doesn’t need to

have a minimum start-up money (since 2003).

If it’s an anonymous company, it must have 37.000 € start-up money.

France

Running costs a/ Employees costs The salary of:

- The 3 administrative officers: from 1100€ to 1800€ per month

- The book keeping: approximately 1750€

- The agency’s director: from 2270€ to 3180€ per month

- The team leader: 1400€

b/ taxes 45% of the agency’s turnover goes to the taxes c/ the commercial premises: the price of a commercial premise is 66€ per square meter per year, before tax. d/ advertising: for the launching of the agency: 2000-3000€ for the running : 2000€ per year

France

Employee 's rights Fixed term contrat A fixed-term contract of employment is defined as a contract of employment which:

has a definite start and end date, or terminates automatically when a particular task is completed, or terminates after a specific event (other than retirement or summary dismissal).

Long term contract A long-term contract is a contract to perform work for another over an extended period of time. A long-term contract is also deemed to be a comprehensive contract since there will never be a need for the parties to revise or renegotiate the contract as the future unfolds. Self-employed An individual who operates a business or profession as a sole proprietor, partner in a partnership, independent contractor, or consultant. Young worker (under 18) Young workers aged 16 and 17 may not ordinarily work more than 8 hours a day or 40 hours a week under the Working Time Regulations, nor at night between 10pm-6am or 11pm-7am. Young workers cannot ‘opt-out’ of the 40 hour limit. They may work longer hours where:

• this is necessary to maintain continuity of service or production, or to respond to a surge in demand for a service or product

• an adult is not available to perform the duties • the training needs of the young worker concerned are not adversely affected • they are adequately supervised during night work hours, where that is necessary for their protection • they are allowed equivalent periods of compensatory rest.

Senior employee The French firms have to integrate better the seniors and incite these people to have some activities after 60 years old. There is a follow-up of senior-employee in France by the Public Services. Foreigner’s work The European citizen can work freely in France. They don’t need any authorization to work and they have the same conditions as a French worker. Dismissal Official notice from the employer to stay that an employee has been fired from his job. Termination of the contract of employment of an employee by the employer in a correct, fair, and lawful manner. Resignation To give up a position by formal notification Unemployment It’s the state of an individual looking for a paying job but not having one. Unemployment does not include full-time students, the retired, children, or those not actively looking for a paying job. 35 hours in France In France, if an employee works over 35 hours per week, he does extra hours.

France

Free Sunday in France In France, so far, people don’t work on Sunday. But, there are some debates about this free day. Some persons want to change the law. Of course, emergency workers, or people working in hotels and restaurants work on Sunday. Paid Leave Employees have got paid leave, if they have worked for the same employer about ten days. Each month of work gives two days and a half paid leave. The employer organizes, thanks to special rules, the paid leave. During the paid leave :

- the employer gives some money according to the period of paid leave.

- If the employees become sick, they can’t extend their paid leave.

- If during the paid leave, there is a bank holiday, he can extend his paid leave of one day. Bank holiday and day off About the bank holiday, some worker are allowed not to work during this day. For example during :

the 1st January

Easter Monday

1st May

8th May

Ascension Day

Whit Sunday

14th july

25th august

All Saints Day

11th November

Christmas day Medical examination In France, a future employee has to pass a medical examination, to be sure that he can do some activities of his new job. It's a guarantee for his boss. Modification of the employment contract There are two different situations about the modification of the employment contract: - the employer wants to change one or several important elements of the employment contract: in this case, this modification, needs the agreement of the principal employee. - the decisions that will make the employer can change the work conditions of the employee. In that case, the employer can lay down these changes. Retirement In France, each person has an access to a retirement. It essentially depends on the age of the worker but after a long time of work and subscriptions. Actually in France, there are a lot of debates about the retirement and the years of subscriptions and the allowed age to leave the labor world.