France - Business law, Taxation, Social law

The enlargement of the European Union by the admission of ten new countries on May 1, 2004 and the advent of the first EU Constitution have re-emphasized France's central role (if not position) in Europe. With its modern and politically savvy managerial assets, France continues to offer itself as an initial foothold, or a continuing expansion point, in the European Union. Unlike the prior edition of this book, all amounts now are indicated in the new European currency -the euro- further underlining the ease with which business can be conducted throughout Europe from a French location. Since the last edition, French corporate law has been liberalized to facilitate start-up ventures. A limited company (SARL) may now be organized with a token one euro in stated capital, and online business compliance is becoming the norm. Tax and social charge incentives have been created for new innovative companies, and French securities law has recently been amended to accommodate venture capital funding. In the part four years, the French government bas undertaken to reduce personal income taxes. The highest marginal personal income tax rate now is below 50 % for the first time in recent memory. A series of temporary, consumer-oriented tax breaks seem to have been successful in stimulating consumer spending, and economic growth in excess of the European norm cap now be anticipated. In terms of social law, France has been at the center of the continuing European debate over what have been termed stock- market-motivated dismissals. The previous administration increased barriers to layoffs only to see such legislation adjourned pending the outcome of bipartisan labor negotiations commenced by the present administration. Pension reform legislation was passed without significant labor disruptions, and France's energy sector is on the track toward liberalization in line with European dictates. At a time when the euro economies are now entering into what appears to be a new period of expansion after years of economic stagnation, there is no better time to develop and strengthen market and manufacturing positions in France. It is hoped that this book will give English-speaking investors the opportunity to understand the problems and prospects offered by the French legal and tax system and to communicate effectively with their French legal and financial advisors.