France

AUGEFI, France – Global Accounting Alliance Member

Economic Overview & Business Opportunities

France (officially known as the French Republic), is the second largest country in Europe. Bordered by Germany and Belgium in the north, the Atlantic Ocean in the west and the Pyrenees Mountains and Spain in the south, it has long been a gateway between the continent’s northern and southern regions. France has long offered a geographic, economic, and linguistic bridge connecting the northern and southern Europe.

France’s economy is the sixth-largest in the world by nominal figures and the ninth-largest by PPP figures. It has the third-largest economy in Europe with Germany top the list. It is the most important agricultural producer in Europe as well as one of the world’s leading industrial powers. Also, France is one of the global top players in manufacturing, especially in the automotive, aerospace and railway sectors as well as in cosmetics. German is the closest trading partner of France, which accounts for nearly 20% of France’s exports and 19% of total imports. The primary exports of France are machinery and transportation equipment, aerospace equipment and plastics, while primary imports include crude oils and automobiles. On the other hand, tourism is another prominent sector in the country’s economy where France is the most visited country in the world. The large number of tourist has increased the country’s purchasing power.

In order to promote competitiveness and improve the business environment, the French government has put in efforts to simplify as well as to reduce corporate taxation, and by introducing more flexibility in the labour market. French tax system offers one the most generous R&D tax benefits in the world, enhancing the development of science and technology in the nation. There is no special rules for foreign companies as the rules and regulations in business are the same for all companies regardless of their origins. There are no administrative restrictions on foreign investments in France and the timeframe required to incorporate a company in France is very short and the whole procedure [ of setting up a business can now be done online. Looking at its labor market, France has one of the highest levels of graduates, and the highest number of science graduates of any European country.

France’s location, together with the state-of-art infrastructure and booming economy, makes it an ideal gateway to other nearby markets, encompassing Europe, Africa and the Middle East. If you are considering of expanding your business portfolio but you do not know which country to choose, France is always the country that has lots to offer.

Sébastien GIORDANO
Chartered Accountant / Auditor and Partner