{ "id": 2355, "date": "2013-01-02T12:39:00", "date_gmt": "2013-01-02T11:39:00", "guid": { "rendered": "https:\/\/weissbergavocats.com\/?p=2355" }, "modified": "2025-12-15T16:28:46", "modified_gmt": "2025-12-15T15:28:46", "slug": "a-guide-to-exporting-to-europe-en", "status": "publish", "type": "post", "link": "https:\/\/www.weissbergavocats.com\/fr\/a-guide-to-exporting-to-europe-en\/", "title": { "rendered": "A guide to exporting to Europe (En)" }, "content": { "rendered": "
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INTRODUCTION<\/strong> <\/h2>\n\n\n\n

Europe today consists of the Member States of the European Union (EU), the Member States\nof the European Free Trade Area (EFTA), and the Central and Eastern European States most\nof which were, until recently, under the political, economic, and military umbrella of the\nformer Soviet Union.\n<\/p>\n\n\n\n

This paper outlines what the potential corporate investor or exporter of goods and services\nmust know of the EU and describes the general aspects of doing business in France.\n<\/p>\n\n\n\n

The EUROPEAN UNION (EU) <\/strong><\/h2>\n\n\n\n

The fifteen current Member States of the EU are France, Germany, the United Kingdom, the\nNetherlands, Spain, Portugal, Belgium, Denmark, Greece, Luxembourg, Italy, Ireland,\nAustria, Finland and Sweden. The EU was initially called European Economic Community\n(EEC). The basic principles of the Economic Union, known as the “Four Freedoms”, set up a\nuniform economic area free from distortions in competition and thus free from customs\nbarriers within the Member States. The “Four Freedoms” are the free movement of goods,\npersons, services and capital. The Treaty of Maastricht dated February 7th, 1992 organized\neconomic and monetary union, unanimity in foreign policy and cooperation in defense among\nthe Member States. In May 1999, the Treaty of Amsterdam added significant improvements\non social and employment matters, to the Treaty of Maastricht.\n<\/p>\n\n\n\n

The EUROPEAN FREE TRADE AREA (EFTA) <\/strong><\/p>\n\n\n\n

The current Member States of EFTA are, Iceland, Norway, Switzerland and Liechtenstein.\nEFTA essentially creates a “privileged” trade area and is not in any sense an economic or\npolitical union. This organization has nonetheless concluded some conventions with EU,\nnamely on jurisdiction, free trade relationship (excepted Switzerland).\n<\/p>\n\n\n\n

It is worth noting that a number of current EEC Member States were previously members of EFTA and that the extension of the EU will probably lead to the disappearance of the EFTA. <\/p>\n\n\n\n

THE FORTHCOMING ACCESSION OF THE CENTRAL AND EASTERN EUROPEAN STATES <\/strong><\/h2>\n\n\n\n

The accession of new Member States will enhance the Union’s international influence.\nAlthough economic and political realities in these countries are often very different, the Union\nwill certainly prove its ability to merge the economic interests of nations with a long common\nhistory of exchanges.\n<\/p>\n\n\n\n

With accession of Central and Eastern Europe countries, as well as Malta, Turkey and Cyprus,\nthe EU’s population could rise by 25% to 500 million but its total GDP would grow no more\nthan 5%.\n<\/p>\n\n\n\n

The Copenhagen European Council started the pre-accession process in 1993. Negotiations\nstarted in 1998 with a first wave of 6 countries : Cyprus, Czech Republic, Estonia, Hungary,\nPoland, Slovenia. This has been followed by a second wave of 5 countries : Bulgaria, Latvia,\nLithuania, Romania, Slovakia.\n<\/p>\n\n\n\n

The Copenhagen European Council defined the criteria which applicants would have to meet\nbefore joining the EU : Stability of institutions guaranteeing democracy, existence of a\nfunctioning market economy, adherence to the aims of political\/economic and monetary\nunion.\n<\/p>\n\n\n\n

The PHARE program is the pivotal financial instrument in the pre-accession strategy. ECU 21\nbillion are to be provided to the Central and Eastern European Countries for the period 2000-\n2006. 30% are to be allocated to the reinforcement of the applicant’s administration and\ninstitutions, 70% in investment financing.\n<\/p>\n\n\n\n

Lately, the Berlin European Council (March 1999) set up 2 pre-accession instruments : A\nstructural instrument (ISPA) and an agricultural one (SAPARD). This European Council\ndecided to double pre-accession aid from 2000.\n<\/p>\n\n\n\n

TRANSATLANTIC ECONOMIC RELATIONS <\/strong><\/h2>\n\n\n\n

The EU and the U.S are each other’s single largest trading partner : In 1997, they traded goods\nworth ECU 277.000 million, around 20% of their total world trade. High added value goods\nlike high-tech products account for 20% of this transatlantic trade. The EU and the U.S have\nby far the world’s most important bilateral investment relationship and are each other’s most\nimportant source and destination for Foreign Direct Investment. 51% of FDI stocks in the E.U\noriginate in the U.S.\n<\/p>\n\n\n\n

The WTO is the scene where the EU and the U.S can exercise considerable influence on\nglobal trade & investment (FDI). In this context, the EU and the U.S have worked together to\nconclude the Information Technology Agreement and the Basic Telecommunication Services\nAgreement, which together liberalize approximately one trillion ECU in trade in goods and\nservices and most recently, the Financial Services Agreement.\n<\/p>\n\n\n\n

Recently, the EU and the U.S went further in their attempts to enhance a closer economic co-\noperation. Despite many efforts on both side, a number of barriers, mainly of a non-tariff kind\ncontinue to hamper Transatlantic Trade. It was with this mind that the European Commission\nmade a proposal in March 1998 on the creation of a New Transatlantic Marketplace (NTM).\n<\/p>\n\n\n\n

This led the EU and the U.S to agree to the launching of the Transatlantic Economic\nPartnership (TEP) at the 18 May 1998 EU\/U.S summit in London.\n<\/p>\n\n\n\n

I. GENERAL COMMENTS CONCERNING THE EU<\/strong><\/h2>\n\n\n\n

A. From The Treaty of Rome to the Treaty of Maastricht <\/strong><\/em><\/h3>\n\n\n\n

The European Economic Community (EEC) came into existence following the signing of the\nTreaty of Rome in 1957 by the six original Member States. The principal object of the Treaty\nwas the creation of a single unified market within its Member States. The United Kingdom,\nDenmark, and the Republic of Ireland acceded to the Community in 1973, Greece in 1979,\nSpain and Portugal in 1986 and Austria, Sweden and Finland in 1996.\n<\/p>\n\n\n\n

The Treaty of Rome is essentially an agreement of principle. For the fulfillment of its objective, it specifically envisages the free movement of goods, services, persons and capital within the Member States. <\/p>\n\n\n\n

The Treaty also defines and creates the institutions charged with the duties of managing, controlling and implementing the numerous steps required to result in the creation of a single European market. <\/p>\n\n\n\n

The idea of a single market, as envisaged in 1957, has been taken substantially further by the Single European Act of 1986 entered into among the Member States and which envisages close economic and monetary cooperation as well as a close harmonization of social, scientific, technological and environmental policies. <\/p>\n\n\n\n

Under the Treaty of Maastricht ratified by the Member States on February 7th, 1992, the EEC\nwas replaced by the European Union, characterized by economic and monetary union, and\ncommon policy in matters of justice, security and foreign affairs. The Member States also\nplanned the creation of a common currency named “Euro” which has entered into circulation\nin 1999.\n<\/p>\n\n\n\n

Remark : The Treaty of Rome is still in existence.\n<\/p>\n\n\n\n

B. The Institutions of the EU <\/strong><\/em><\/h3>\n\n\n\n

The Institutions are :<\/p>\n\n\n\n

  1. Parliament, <\/li>
  2. Commission, <\/li>
  3. European Court of Justice, <\/li>
  4. Economic and Social Committee <\/li>
  5. With the Treaty of Maastricht the European Monetary Institute, <\/li>
  6. European Central Bank and <\/li>
  7. European Central Bank system. <\/li><\/ol>\n\n\n\n

    a. The Parliament<\/em><\/h4>\n\n\n\n

    The European Parliament, also called the Assembly, is located in the Franco-German border\ntown of Strasbourg. It is charged under the Treaty of Rome with mainly advisory and\nsupervisory responsibilities, and was not intended as a legislative body even though it\nassumes a substantial part in the legislative process and has recently been given veto powers\nover certain aspects of the EU budget. The Parliament has an advisory role under the Treaty\nof Rome but the Council has no obligation to follow its advice, although its powers have been\nstrengthened in the Treaty of Maastricht and in the Amsterdam Treaty.\n<\/p>\n\n\n\n

    b. The Council <\/em><\/h4>\n\n\n\n

    The Council consists of representatives of the Member States (one for each State) and is\nensuring that the objectives of the Treaty of Rome are fulfilled. The Council is not a\npermanent body, its members having full-time responsibilities in their States either as\nministers or as civil servants and meeting only a few days a month.\n<\/p>\n\n\n\n

    c. The E<\/em>uropean Commission <\/em><\/h4>\n\n\n\n

    It has been described as the “guardian” of the Treaty. <\/p>\n\n\n\n

    1. The Commission consists of twenty members (two from each of the four biggest members and Spain, and one from each of the other States). <\/li>
    2. The European Commission has three functions.<\/li><\/ol>\n\n\n\n
      1. First it is the promoter of Union\u2019s action, with respect, for instance, to its role in the enactment of the directives. <\/li>
      2. Secondly, it is the Union\u2019s watchdog and <\/li>
      3. Thirdly, it functions as the executive of the EU. It is worth noting in particular that competition policy is enforced solely by the Commission. <\/li><\/ol>\n\n\n\n

        d. The European Court of Justice <\/em><\/h4>\n\n\n\n

        The European Court of Justice is in charge of the interpretation and application of\nCommunity law. It is the supreme authority on all matters of Community Law. Issues are\nbrought before it by the national courts of the Member States or by the Member States\nthemselves, following specific proceedings.\n<\/p>\n\n\n\n

        The case law of the European Court of Justice today is a fundamental source of law not only\nin the scope of the treaties but also in Human Rights field : its creative role has permitted to\ncompensate the non-adhesion of the EU to the European Human Rights Convention as\nindependent entity towards its Member States (although the current negotiations aim at this\npurpose).\n<\/p>\n\n\n\n

        e. Economic and Social Committee <\/em><\/h4>\n\n\n\n

        The Economic and Social Committee has a consultative role in the EU decision-making\nprocess. It members are appointed by the Council in their personal capacity and represent a\nvariety of interests such as farmers, workers, trade unionists and consumers.\n<\/p>\n\n\n\n

        f. The Comity of Regions <\/em><\/h4>\n\n\n\n

        It includes 222 members and does represent the regional and local entities of the EU. Before\nany decision, the Council and Commission are under the obligation to consult the Comity of\nRegions.\n<\/p>\n\n\n\n

        g. Economic and Monetary Union (EMU) <\/em><\/h4>\n\n\n\n

        The Economic and Monetary Union has been brought into operation in January 1999. Its\nthree corner stones are a close coordination of the States\u2019 economic policies, a unique\ncurrency (the “Euro”), and an irrevocable fixing of the rates of exchange.\n<\/p>\n\n\n\n

        On 2 May 1998, the Council of the EU unanimously decided that 11 Member States fulfilled\nthe necessary conditions for the adoption of the single currency on the 1st of January 1999.\nThese States are : Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg,\nThe Netherlands, Portugal, Spain, Denmark, Greece and Sweden. The UK has not joined the\nEURO for the time being.\n<\/p>\n\n\n\n

        The European Central Bank (ECB) was created on the 1st of June 1998. It is partially\nindependent. Its primary goal is price stability which should be gained through low interest\nrates, strong investment growth, high economic growth and employment policy.\n<\/p>\n\n\n\n

        The Global Economy has welcomed a new stabilizing force and Europe trading partners\namong which the U.S is most important, has gained from increased transparency, lower costs\nand great predictability in the E.U market.\n<\/p>\n\n\n\n

        C. Legislative Acts <\/strong><\/em><\/h3>\n\n\n\n

        The legislative acts of the EU institutions are “regulations, directives and decisions”.
        \n– A “regulation” has general application; it is binding and immediately applicable in all\nMember States.
        \n– A “directive” is also binding but only after a certain period of time during which it is left to\neach
        \nMember State to which it is addressed to choose the form and method of its implementation.
        \n– A “decision” is immediately binding upon those to whom it is addressed.
        \nApart from the legislative act stricto sensu, EU institutions can make “recommendations” or\n“opinions” which have very substantial persuasive authority.\n<\/p>\n\n\n\n

        D. The Common Market <\/strong><\/em><\/h3>\n\n\n\n

        As mentioned above the Treaty of Rome envisages the creation of a single market through the\nfree movement goods, services, persons and capital within the Community. Each of these\n“four freedoms” will be addressed briefly below:\n<\/p>\n\n\n\n

        a. The Free Movement of Goods <\/em><\/h4>\n\n\n\n

        The objective of this “freedom” is to establish a tariff-free union between Member States\nthrough the abolition of customs duties on exports and imports between them and the\nadoption of a common customs tariff towards non-Member States, and the elimination of\nquantitative restrictions of imports to and exports from the Member States. Thus, if a U.S.\ncompany establishes a presence in a Member State, that presence will be able to benefit from\nthis “freedom” instead of being subject to a diversified range of customs, duties and import\nrestrictions otherwise applicable.\n<\/p>\n\n\n\n

        “Goods” covers both industrial and agricultural products whether originating within Member\nStates or coming from third countries already in free circulation within the Community. It\nalso applies to Community patents; by registering a patent within a Member State, its\nregistration is deemed to have been made within all Member States.\n<\/p>\n\n\n\n

        b. The Free Movement of Services <\/em><\/h4>\n\n\n\n

        This “freedom” consists of no restriction policy on the movement of services within Member\nStates.\n<\/p>\n\n\n\n

        Services include insurance, banking and other financial services, legal services, accounting\nservices, etc. To this end, directives have already been enacted in relation to investments,\ninsurance, banking and financial and legal services.\n<\/p>\n\n\n\n

        However, given that each Member State is free to choose its method of implementation of the\ndirective, substantial differences in application exist to date although it is envisaged that the\ndifferences will gradually disappear over time.\n<\/p>\n\n\n\n

        c. The Free Movement of Persons <\/em><\/h4>\n\n\n\n

        This “freedom” has substantial social importance within the Community. It establishes the\nrights of nationals of Member States and certain members of their family to move and\nestablish themselves freely within the Member States. The freedom includes the rights to\nemployment (with current exemptions in relation to employment in Public Service) under the\nnon-discrimination principle : it namely involves the right to benefit from any social\nadvantage initially reserved to the Nationals.\n<\/p>\n\n\n\n

        d. The Free Movement of Capital <\/em><\/h4>\n\n\n\n

        It is probably obvious that for there to be an unified market place there must be a free\nmovement of capital. In this respect, this freedom envisages the abolition of restrictions of\ncapital flows within the community.\n<\/p>\n\n\n\n

        In summary, the Union offers its Member States as well as all entities and individuals\nestablished within it, very substantial benefits. The purpose of the Union, which is to create\nan Economic and Monetary Union, is motivated by the desire to obtain a competitive\nadvantage toward non-Member States and individuals.\n<\/p>\n\n\n\n

        e. The “Schengen” Agreements (“Accords de Schengen”) <\/em><\/h4>\n\n\n\n

        The application of the four freedoms mentioned above involves the suppression of the controls\nat the interior frontiers of the European Member States. As a result, the controls must be\ntransferred to the external frontiers of the EU, accompanied by common rules concerning for\ninstance drugs, weapons ..\n<\/p>\n\n\n\n

        The Schengen Agreement, dated June 19, 1990, has been signed between some of the Member\nStates in order to solve these difficulties. United Kingdom, Ireland, Denmark, Sweden,\nAustria and Finland are still not signatories of the Agreement, whereas Greece and Italy do\nnot comply yet with all of its conditions.\n<\/p>\n\n\n\n

        As a matter of fact, the Member States chose not to act under the authority of the EU.\nHowever, the Schengen Agreement has to comply with the regulations of the EU Treaties\n(Treaty of Rome, Treaty of Maastricht, …)\n<\/p>\n\n\n\n

        The Agreement provides for the lifting of the controls of the interior frontiers, the\nharmonization of the rules concerning the entry and the circulation of persons and goods\nwithin the EU, the right of sanctuary …\n<\/p>\n\n\n\n

        It establishes a judiciary and Police cooperation among the Member States as well as an\nexchange of information (“Schengen Information System”).\n<\/p>\n\n\n\n

        II. ESTABLISHING IN France <\/strong><\/h2>\n\n\n\n

        A U.S. company establishing a presence in any one of the EU Member States will be able to\nbenefit from the freedom of movement of goods, services, capital and people within the EU.\nThe economic opportunities, enhanced by numerous incentive schemes and the large choice\nof legal structures available make France an ideal choice when deciding the country in which\nto establish a presence. French legislators have simplified administrative formalities in order\nto bring French business practice more in keeping with principles shared by the world\ncommunity. The French business environment is similar to that elsewhere in the developed\nworld today, with further particular attractions.\n<\/p>\n\n\n\n

        A. Different Forms of Presence <\/strong><\/em><\/h3>\n\n\n\n

        International companies setting up in France benefit from a secure legal framework. They can\nselect those best suited to their position and commercial strategy at every stage, from\nprospection to business expansion.\n<\/p>\n\n\n\n

        1. First stage : the basic setting-up <\/em><\/h4>\n\n\n\n
        a. Setting up without officially registered representation <\/em><\/h5>\n\n\n\n

        A foreign company can rent an office or set up operations at a business-service center and\nopen a non-resident bank account. Once the company has its own premises and\/or employs\ntwo or more people in France, it must be officially represented by a registered liaison office, a\nbranch or a subsidiary.\n<\/p>\n\n\n\n

        b. The liaison office : Exempt from corporate income tax and VAT <\/em><\/h5>\n\n\n\n

        A company whose activities in France are not of a commercial nature, being limited to\nadvertising, the supply of information, storage or any other preliminary operation, may be\nrepresented by a liaison office. Registration is with the trade register (Registre du Commerce\net des Soci\u00e9t\u00e9s).\n<\/p>\n\n\n\n

        c. Branch offices : A good temporary arrangement. <\/em><\/h5>\n\n\n\n

        Branches are considered permanent establishments for tax purposes, and are subject to\ncorporate income tax and VAT. It is quicker and less expensive to set up a branch office than\na subsidiary. The branch operates under the authority of company headquarters. It is not a\nseparate legal entity. They are thus drawbacks, for example, in the event of financial\ndifficulties : the company will have unlimited liability for the debts of the branch office.\n<\/p>\n\n\n\n

        It may thus be preferable to set up a separate entity in order to shield the mother company\nfrom direct liability exposure and also, to benefit from State aid, tax exemptions, taxation of\nintra-group transactions. As a result, it is a generally advised to create a subsidiary.\n<\/p>\n\n\n\n

        2. The setting-up of a limited liability type of company\n<\/h4>\n\n\n\n

        A U.S. corporation contemplating the establishment of a limited liability company in France\nshould be aware of the different types and characteristics of French limited liability entities.\n<\/p>\n\n\n\n

        French business entities fall into one of two categories : soci\u00e9t\u00e9s de personnes, which\napproximate to U.S. partnerships and soci\u00e9t\u00e9s de capitaux in which the shareholders’ liability\nis limited to the amount of their respective subscription.\n<\/p>\n\n\n\n

        Under French law, there are four types of soci\u00e9t\u00e9s de personnes: soci\u00e9t\u00e9 en nom collectif\n(SNC) (general partnership); soci\u00e9t\u00e9 en commandite (partnership with limited and general\npartners); soci\u00e9t\u00e9 civile (civil partnership) and soci\u00e9t\u00e9 en participation (undisclosed\npartnership).\n<\/p>\n\n\n\n

        Most business entities in France are characterised by the limited liability of its shareholders.\nUnder French law, there are five such entities: soci\u00e9t\u00e9 anonyme (SA) (joint stock\ncorporation), soci\u00e9t\u00e9 anonyme simplifi\u00e9e (SAS) (simplified joint stock corporation), soci\u00e9t\u00e9 \u00e0\nresponsabilit\u00e9 limit\u00e9e (SARL) (limited liability company) soci\u00e9t\u00e9 en commandite par actions\n(limited partnership with shares), rarely used, and entreprise unipersonnelle \u00e0 responsabilit\u00e9\nlimit\u00e9e (E.U.R.L.) (incorporated sole proprietorship). Brief comments in relation to each of\nthese legal entities are set out below.\n<\/p>\n\n\n\n

        (a) Soci\u00e9t\u00e9 Anonyme (SA)\n<\/h5>\n\n\n\n

        The French legal form closest to the U.S. corporation is the soci\u00e9t\u00e9 anonyme (SA). Its share\ncapital (250,000 FF minimum) must be held by at least seven shareholders, who meet at least\nonce a year to approve its financial statements and to decide whether profits will be\ndistributed or retained, or both. Day-to-day management is delegated to:\n<\/p>\n\n\n\n

        (1) A Board of Directors (Conseil d’administration) which elects its chairman (Pr\u00e9sident), who is also often the Managing Director (Directeur G\u00e9n\u00e9ral), its Chief Executive Officer, or
        (2) A Supervisory Council, which appoints a management committee (Directoire). <\/p>\n\n\n\n

        Simple majority rules apply during annual shareholder’s meeting. If major decisions have to\nbe made, such as a merger or a change in the articles of association, an extraordinary\nshareholder’s meeting must be convened, and qualified majority rules apply.\n<\/p>\n\n\n\n

        (b) Soci\u00e9t\u00e9 Anonyme Simplifi\u00e9e (SAS)\n<\/h5>\n\n\n\n

        The SAS was created in France in 1994 to attract investments. It is a flexible limited liability\ncompany in which the division of powers, nomination of directors and mode of operations are\nfreely determined by the by-laws. Since 1999, the minimum capital required is of 250,000 FF\nand the requirement that the shareholders must be legal entities has been removed. One\nshareholder only is enough to create a SAS.\n<\/p>\n\n\n\n

        This modification of the SAS’ regime is meant to promote the setting up of New Technology\nstart-ups.\n<\/p>\n\n\n\n

        The SAS makes it possible for these entrepreneurs to arrange a flexible legal structure adapted\nto a highly competitive and evolving business area.\n<\/p>\n\n\n\n

        (c) Soci\u00e9t\u00e9 \u00e0 Responsabilit\u00e9 Limit\u00e9e (SARL)\n<\/h5>\n\n\n\n

        The characteristics of the SARL are the following :
        \n– it does not have a Board of Directors but a manager (g\u00e9rant) who need not be a shareholder;\n– the minimum share capital is FF 50,000;
        \n– it must have a minimum of two shareholders and a maximum of 50;
        \n– the qualified majority rule is three-fourths;
        \n– If the manager hired is not a citizen of an EU member State, application must be made for a\nbusiness permit (carte de commer\u00e7ant), either through the French Consulate in the person’s\nhome country or through the local administrative authority in which the company is to locate\nits registered office.\n<\/p>\n\n\n\n

        (d) Entreprise Unipersonnelle \u00e0 Responsabilit\u00e9 Limit\u00e9e (EURL)\n<\/h5>\n\n\n\n

        Popular among foreign investors because it requires only one shareholder, the EURL operates\nlike a SARL.\n<\/p>\n\n\n\n

        It permits the sole owner of a business to limit its liability for business debts only to the extent\nof the amount of the capital. The sole shareholder may either be an individual or a legal entity.\n<\/p>\n\n\n\n

        In the latter case, the EURL is automatically subject to corporate income tax at normal rate.
        \nIn addition, while an individual may be shareholder of only one EURL, the number of\nEURL’s held by a company is not limited. The EURL is managed by a g\u00e9rant who must be an\nindividual but needs not to be the shareholder. In other respects, the rules of the SARL apply\nto the EURL.\n<\/p>\n\n\n\n

        Hence, the EURL form may also appear to be a convenient legal vehicle for the American\ninvestor who wishes either to create a subsidiary in France whose business does not\nimmediately necessitate the incorporation of an SA, or to acquire 100 % of the capital of an\nexisting SARL.\n<\/p>\n\n\n\n

        3. French Partnerships and Similar Structures and Non-corporate Contractual\nArrangements\n<\/h4>\n\n\n\n

        These consist of :\n<\/p>\n\n\n\n

        (a) Soci\u00e9t\u00e9 en nom collectif (SNC)<\/h5>\n\n\n\n

        This is the most common form of partnership, equivalent to a U.S. general partnership. Its partners are jointly and collectively liable for all debts and obligations incurred in as much as they are considered to be merchants. SNC are often used because of their flexibility (no minimum capital, no board of directors, possibility of dividend rights and capital contributions). The contract nature of SNC tax status (i.e. transparency) also makes this structure attractive under certain circumstances. <\/p>\n\n\n\n

        (b) Groupement d’int\u00e9r\u00eat commun (GIE)<\/h5>\n\n\n\n

        The GIE is essentially a joint venture with a legal personality of its own. The rules governing it and its members, its day-to-day management and profit-and-loss allocation are set forth in an agreement signed by its members. Transparent for tax purposes, the GIE structure tends to be the favored in ventures in large-scale industrial projects, research and development, joint sales and exports, or purchasing activities conducted on behalf of members. <\/p>\n\n\n\n

        4. Distributorship Agreements\n<\/h4>\n\n\n\n

        Distribution of goods or services may be achieved through any of established means :\n– Distributorship agreement
        \n– Commercial agency agreement
        \n– Franchise agreement\n<\/p>\n\n\n\n

        (a) Distributorship Agreement\n<\/h5>\n\n\n\n

        This type of agreement is a purchase-and-sale agreement whereby the distributor is\nremunerated for its services by a gross margin on sales. The conditions of the agreement may\nbe negotiated freely, subject to relevant EU and domestic competition laws. It must be\ndetermined whether the agreement is on an exclusive or non-exclusive basis, for a specific or\nundetermined territory, for a limited or unlimited period of time.\n<\/p>\n\n\n\n

        A distributor has no basic title to the manufacturer’s clientele. As a result, the termination of a\npure distributorship agreement does not trigger severance payment and damages, except for\nabrupt termination.\n<\/p>\n\n\n\n

        The grantor can unilaterally terminate the distributorship agreement. But he may be obliged to\nassume liability for the employees of the distributor. As a general matter of labor law, in the\nevent of a “modification” of the juridical situation of an employer, notably as a result of a take\nover, sale, merger, or transformation of its going concern or incorporation, all employee\ncontracts in effect at the time of such modification remain in effect as between the new\nemployer and the personnel of the company. This provision of labor law has been interpreted\nby the courts to apply to a modification consisting of the non-renewal by a grantor of a\ndistributorship agreement and his decision to commercialize his products directly; in such\ncircumstances grantors have been obliged to either take over the employment of the\nemployees hired by the distributors to sell grantor’s products or pay severance indemnities to\nthe employees on the basis of an unjustified termination of their employment contract (Art. L\n122-12 of the labor law code).\n<\/p>\n\n\n\n

        (b) Commercial Agency Agreement\n<\/h5>\n\n\n\n

        This is the most common form of distributorship agreement used in France. The commercial\nagent is an independent contractor who takes orders from customers on behalf of the principal\nand receives a commission expressed as a percentage of sales in consideration for its services.\n<\/p>\n\n\n\n

        The agent must be registered with the office of commercial court and must hold a commercial\ncard. It must also register with the State welfare agency and contract for a retirement plan, as\nwell as a medical plan. The commercial agent is entitled to damages for breach or termination\nof contract, which can amount to as much as two years of anticipated commissions. Some\ncommercial agency agreements contain clauses.\n<\/p>\n\n\n\n

        (c) Franchise Agreement\n<\/h5>\n\n\n\n

        This is a contractual arrangement between the owner (the franchiser) of a marketing process\nand
        \ncorresponding products and several retailers (the franchisees). The arrangement comprises :
        \n– distribution of products by franchisees;\n<\/p>\n\n\n\n

        – licensing of trademarks and protected know-how; and
        \n– marketing and sales services. If the arrangements provide for the assignment of trademarks,\nthe contracts must be registered with the French National Institute of Industrial Property\n(INPI).\n<\/p>\n\n\n\n

        5. Joint Ventures in France\n<\/h4>\n\n\n\n

        A joint venture may be described as an agreement of cooperation between independent parties\n(often, but not always, of similar economic weight) who enter into a common objective\nwhether for profit or otherwise.\n<\/p>\n\n\n\n

        A joint venture may be materialized by a simple contractual relationship, a partnership\nagreement or a joint corporation. Joint ventures which result in a common entity are organized\neither in the form of a partnership or in a form of a corporation. Joint venture contracts\nprovide great flexibility to the parties by avoiding the burdens inherent in setting up a separate\nlegal entity. However, limits to the contractual freedom are sometimes imposed by public\npolicy rules relevant to the place where the contract is to be performed or to the nature of its\npurpose.\n<\/p>\n\n\n\n

        B. Investment Incentives Available : <\/em><\/strong><\/h3>\n\n\n\n

        To stimulate industrial development, the French government and local authorities have\nimplemented a wide range of financial incentives specifically tailored to industrial research\nand development. These programs are often supervised by the Community. A foreign investor\ncan benefit from investment aids created in order to promote and maintain employment by the\nreorganization or reorientation of industries experiencing economic difficulties. The various\nincentive programs available in France are frequently coordinated at the national level by the\nD\u00e9l\u00e9gation \u00e0 l’Am\u00e9nagement du Territoire et \u00e0 l’Action R\u00e9gionale (DATAR) and at the local\nlevel by the municipalities. Thus, for example;\n<\/p>\n\n\n\n

        1. The “Prime d’Am\u00e9nagement du Territoire” (P.A.T) granted by the DATAR. <\/em><\/h4>\n\n\n\n

        DATAR provides grants to finance up to 33% of a given investment in land, buildings and\/or\nequipment purchased during the first three years of operation. The criteria to be eligible\ninclude site selection, the number of jobs created or to be created and the benefits for local\nindustry. The amount allocated to the proposed operations is determined by a government\ncommittee. One-third of the grant is paid at the beginning of the investment program, and the\nremainder is paid in two installments as the project moves towards completion.\n<\/p>\n\n\n\n

        To prevent distortion of completion within the European Union, the Commission has set\nlimits on total public assistance which vary according to the area concerned. In a few areas,\nnotably the area around Longwy in Eastern France, parts of the North and Corsica, the ceiling\nis as high as 28% or even 33% of investment in property, plant and equipment. In some other\n<\/p>\n\n\n\n

        areas, only independent companies with fewer than 250 employees can benefit from public\nassistance and then, at a low rate.\n<\/p>\n\n\n\n

        2. The Regional Grant for New Businesses (P.R.C.E.) <\/strong><\/em><\/h4>\n\n\n\n

        The Regional Grant for New Businesses (P.R.C.E) is given by Regions with no geographical\nlimitations.\n<\/p>\n\n\n\n

        It may be combined with the P.A.T. and is reserved to young companies registered for less\nthan 12 months, which are likeley to create a minimum number of jobs.\n<\/p>\n\n\n\n

        The advantage takes the form of a pre-tax ceiling (150,000 FF to 200,000 FF), of refundable\nloans, participation in equity capital, etc…\n<\/p>\n\n\n\n

        3. The Redevelopment Agencies <\/em><\/h4>\n\n\n\n

        The Redevelopment Agencies have also been created by large industrial corporations to\nencourage the redevelopment of their production sites or the job reinsertion : a free technical\nassessment is offered as well as various financial assistance.\n<\/p>\n\n\n\n

        4. Preferential Tax Regimes <\/em><\/h4>\n\n\n\n

        Preferential Tax Regimes are provided, such as the Research Tax Credit, in order to\nencourage innovative programs and technology transfers and the Tax Credit Break for\ncompanies located in special investment areas (Z.I.P.).\n<\/p>\n\n\n\n

        5. Temporary exemption from the Business tax <\/em><\/h4>\n\n\n\n

        Temporary exemption from the Business tax may be granted to the benefit of research or\nindustrial activities located in priority development areas.\n<\/p>\n\n\n\n

        6. Tax exemptions are available for acquisitions of ailing firms <\/em><\/h4>\n\n\n\n

        A company set up for the purpose of acquiring an ailing firm may qualify for major\nexemptions from tax, social contributions and property levies. Acquirers can thus enjoy total\nexemption from corporate income tax for the first 24 months of operation under certain\nconditions. Entrepreneurs must undertake to keep the company and its business in operation\nfor the three years following the acquisition, failing which the tax savings become payable.\n<\/p>\n\n\n\n

        The buyer may also be exempted from business tax for a period of 2 years in all parts of\nFrance by decision of a local authority like a “Commune”.\n<\/p>\n\n\n\n

        7. National social measures <\/em><\/h4>\n\n\n\n

        National social measures are open to foreign enterprises inasmuch as they are treated like\nFrench establishments. These measures allow total or partial exemption on labor costs,\nemployer contributions, reimbursements of training expenses, extensive incentives for hiring\nyoung employees…. These various aids cover a large field of activities.\n<\/p>\n\n\n\n

        8. Research & Development <\/em><\/h4>\n\n\n\n

        To encourage companies in certain key areas of technology to set up in France, the Minister\nfor Industry and Research offer subsidies for part of the research expenditure involved. When\ninvestment in research is not directly subsidized, it may qualify for tax credit of up to FF 40\nmillion per company and per year.\n<\/p>\n\n\n\n

        9. Local financial support <\/em><\/h4>\n\n\n\n

        Most French municipalities and Chambers of Commerce sponsor business parks and\nindustrial zones.\n<\/p>\n\n\n\n

        They sell or lease the land and provide financing. Also government and local funds are\navailable for job training.\n<\/p>\n\n\n\n

        10. Export guarantees and financial assistance <\/em><\/h4>\n\n\n\n

        Export guarantees and financial assistance are also investment incentives. The “Compagnie\nFran\u00e7aise d’Assurance pour le Commerce Exterieur” (COFACE) and the Banque Fran\u00e7aise du\nCommerce Exterieur (BFCE) play the same role in relation to the sale of French goods abroad\nas the Overseas Private Investment Corporation (OPIC) in the U.S. in relation to the U.S.\ngoods or the Export Credit Guarantee Department of the United Kingdom and may guarantee\nand assist export activities.\n<\/p>\n\n\n\n

        COFACE provides credit insurance on behalf of the French State. BFCE provides subsidized\nfinancing for companies involved in international trade and plays a coordinating role between\nFrench exporters and the French Government.\n<\/p>\n\n\n\n

        C. Investment Incentives Available : <\/em><\/strong><\/h3>\n\n\n\n

        To stimulate industrial development, the French government and local authorities have implemented a wide range of financial incentives specifically tailored to industrial research and development. <\/p>\n\n\n\n

        These programs are often supervised by the Community. <\/p>\n\n\n\n

        A foreign investor can benefit from investment aids created in order to promote and maintain employment by the reorganization or reorientation of industries experiencing economic difficulties. <\/p>\n\n\n\n

        The various incentive programs available in France are frequently coordinated at the national level by the D\u00e9l\u00e9gation \u00e0 l’Am\u00e9nagement du Territoire et \u00e0 l’Action R\u00e9gionale (DATAR) and at the local level by the municipalities. <\/p>\n\n\n\n

        Thus, for example; <\/p>\n\n\n\n

        1. The “Prime d’Am\u00e9nagement du Territoire” (P.A.T) granted by the DATAR. <\/em><\/h4>\n\n\n\n

        DATAR provides grants to finance up to 33% of a given investment in land, buildings and\/or\nequipment purchased during the first three years of operation. The criteria to be eligible\ninclude site selection, the number of jobs created or to be created and the benefits for local\nindustry. The amount allocated to the proposed operations is determined by a government\ncommittee. One-third of the grant is paid at the beginning of the investment program, and the\nremainder is paid in two installments as the project moves towards completion.\n<\/p>\n\n\n\n

        To prevent distortion of completion within the European Union, the Commission has set\nlimits on total public assistance which vary according to the area concerned. In a few areas,\n<\/p>\n\n\n\n

        notably the area around Longwy in Eastern France, parts of the North and Corsica, the ceiling\nis as high as 28% or even 33% of investment in property, plant and equipment. In some other\nareas, only independent companies with fewer than 250 employees can benefit from public\nassistance and then, at a low rate.\n<\/p>\n\n\n\n

        2. The Regional Grant for New Businesses (P.R.C.E.) <\/em><\/h4>\n\n\n\n

        The Regional Grant for New Businesses (P.R.C.E) is given by Regions with no geographical\nlimitations.\n<\/p>\n\n\n\n

        It may be combined with the P.A.T. and is reserved to young companies registered for less\nthan 12 months, which are likeley to create a minimum number of jobs.\n<\/p>\n\n\n\n

        The advantage takes the form of a pre-tax ceiling (150,000 FF to 200,000 FF), of refundable\nloans, participation in equity capital, etc…\n<\/p>\n\n\n\n

        3. The Redevelopment Agencies <\/em><\/h4>\n\n\n\n

        The Redevelopment Agencies have also been created by large industrial corporations to\nencourage the redevelopment of their production sites or the job reinsertion : a free technical\nassessment is offered as well as various financial assistance.\n<\/p>\n\n\n\n

        4. Preferential Tax Regimes <\/em><\/h4>\n\n\n\n

        Preferential Tax Regimes are provided, such as the Research Tax Credit, in order to\nencourage innovative programs and technology transfers and the Tax Credit Break for\ncompanies located in special investment areas (Z.I.P.).\n<\/p>\n\n\n\n

        5. Temporary exemption from the Business tax <\/em><\/h4>\n\n\n\n

        Temporary exemption from the Business tax may be granted to the benefit of research or\nindustrial activities located in priority development areas.\n<\/p>\n\n\n\n

        6. Tax exemptions are available for acquisitions of ailing firms <\/em><\/h4>\n\n\n\n

        A company set up for the purpose of acquiring an ailing firm may qualify for major\nexemptions from tax, social contributions and property levies. Acquirers can thus enjoy total\nexemption from corporate income tax for the first 24 months of operation under certain\nconditions. Entrepreneurs must undertake to keep the company and its business in operation\nfor the three years following the acquisition, failing which the tax savings become payable.\n<\/p>\n\n\n\n

        The buyer may also be exempted from business tax for a period of 2 years in all parts of\nFrance by decision of a local authority like a “Commune”.\n<\/p>\n\n\n\n

        7. National social measures <\/em><\/h4>\n\n\n\n

        National social measures are open to foreign enterprises inasmuch as they are treated like\nFrench establishments. These measures allow total or partial exemption on labor costs,\nemployer contributions, reimbursements of training expenses, extensive incentives for hiring\nyoung employees…. These various aids cover a large field of activities.\n<\/p>\n\n\n\n

        8. Research & Development <\/em><\/h4>\n\n\n\n

        To encourage companies in certain key areas of technology to set up in France, the Minister\nfor Industry and Research offer subsidies for part of the research expenditure involved. When\ninvestment in research is not directly subsidized, it may qualify for tax credit of up to FF 40\nmillion per company and per year.\n<\/p>\n\n\n\n

        9. Local financial support <\/em><\/h4>\n\n\n\n

        Most French municipalities and Chambers of Commerce sponsor business parks and\nindustrial zones.\n<\/p>\n\n\n\n

        They sell or lease the land and provide financing. Also government and local funds are\navailable for job training.\n<\/p>\n\n\n\n

        10. Export guarantees and financial assistance <\/em><\/h4>\n\n\n\n

        Export guarantees and financial assistance are also investment incentives. The “Compagnie\nFran\u00e7aise d’Assurance pour le Commerce Exterieur” (COFACE) and the Banque Fran\u00e7aise du\nCommerce Exterieur (BFCE) play the same role in relation to the sale of French goods abroad\nas the Overseas\n<\/p>\n\n\n\n

        Private Investment Corporation (OPIC) in the U.S. in relation to the U.S. goods or the Export\nCredit Guarantee Department of the United Kingdom and may guarantee and assist export\nactivities.\n<\/p>\n\n\n\n

        COFACE provides credit insurance on behalf of the French State. BFCE provides subsidized\nfinancing for companies involved in international trade and plays a coordinating role between\nFrench exporters and the French Government.\n<\/p>\n\n\n\n

        D. Conditions Required for Establishing Presence <\/strong><\/em><\/h3>\n\n\n\n

        The foreign investor exporting goods or services to France must comply with certain\nconditions related to the entry of capital, services and persons.\n<\/p>\n\n\n\n

        a. The Export of Capital to France <\/em><\/h4>\n\n\n\n

        Following the abolition of exchange controls in 1989, there were very few obstacles to the\ntransfer of funds to and from France.\n<\/p>\n\n\n\n

        Investments, whether by EU entities or by non-EU entities, that conform to one (among others) of the following cases were exempted from declaration and preliminary authorization of the French Treasury : <\/p>\n\n\n\n

        1. Creation of subsidiaries in France or a newly-formed legal entity;<\/li>
        2. Extension of the activity of an existing company;<\/li>
        3. Increase of the interest held in a French company under foreign control where the investor already holds two-thirds of the capital or of the voting rights. <\/li><\/ol>\n\n\n\n

          Every direct investment operation realized in France must only be declared to the Ministre de\nl\u2019Economie et des Finances wherever this investment may come from.\n<\/p>\n\n\n\n

          However the following investments remain submitted to the obligation of prior declaration :\nInvestments, whether related to the exercise of the French public authority or infringing upon\nthe public order, the health, the security and those engaged in activities connected to the\nproduction or the commerce of guns and war material or investments that are contrary to the\nenforcement of French laws and regulations, are subject to a preliminary authorization.\n<\/p>\n\n\n\n

          On the contrary, neither authorization nor prior declaration are required in a large variety of\ncases such as creation of companies, subsidiaries and new undertakings, direct investment\noperations realized, exceeding an amount of 10 million francs in artisan, hotel or retail\nenterprises in diverse commercial services or having for exclusive purpose the exploitation of\nquarries, direct investments in estate enterprises (excepted building enterprises), acquisition of\nfarms, subscription to share capital increase, etc.\n<\/p>\n\n\n\n

          Subject to any applicable taxation, transfers of dividends and repatriation of capital are free.\n<\/p>\n\n\n\n

          b. The Export of Goods to France <\/em><\/h4>\n\n\n\n
          (i) Customs Regulations\n<\/h5>\n\n\n\n

          Goods circulate freely within the EU and duty is charged on imports only once. The principle\nis that customs duties are paid just once on arrival in the EU, even when they are shipped on\nfrom one Member State to another.\n<\/p>\n\n\n\n

          Moreover, products transferred to France from another EU country are not subject to any\nimport declaration (D.I) or import license. The same applies to those imported from a non-EU\ncountry provided the necessary EU entry formalities have been met in another EU country.\n<\/p>\n\n\n\n

          Furthermore, procedures and documents have been standardized. The S.A.D (d\u00e9claration\nadministrative unique), an identical document for all EU countries can be used for import,\ntransit and export. For import into France, from a non-European country, it is simply a matter\nof taking the goods to customs, handing over the S.A.D and paying the duties. The operation\nmay take 3 days, but then exist special clearance procedures which can speed up the process.\n<\/p>\n\n\n\n

          The S.A.D must be filed by the importer at the EU place of entry. The certificate of origin, the\ninvoices, and the stamped D.I form or import license, when applicable, are admitted, along\nwith the S.A.D form to the Customs Office at the place of entry.\n<\/p>\n\n\n\n

          Therefore, apart for certain products which are considered “sensitive” because of their nature\nor their source (Asian countries or Eastern Europe) and require an import license, there is no\nrestriction on imports in France.\n<\/p>\n\n\n\n

          For some products, a form known as the D.I (D\u00e9claration d’Importation) must be filed with\nthe Technical Division of the relevant Ministry, prior to Import. The technical Division\nreturns the form bearing its stamp to the importer, who then has one year to import the goods.\n<\/p>\n\n\n\n

          Import licenses and D.I must be requested from the Central Import Licensing Office.\n<\/p>\n\n\n\n

          (ii) Value Added Tax (VAT)<\/h5>\n\n\n\n

          The VAT is a tax on the consumption of goods and services and is paid by the consumer. <\/p>\n\n\n\n

          Businesses are only charged with collecting the tax on sales and deduct the VAT they have\npaid on purchases and investments from the amount collected.\n<\/p>\n\n\n\n

          All EU. member states have adopted the VAT. In 1993, VAT became a pan-European tax,\ncharged in the country receiving the goods. Once charged, goods circulated freely with the\nEU.\n<\/p>\n\n\n\n

          Exports of goods are fully exempt from VAT. Banking, financial and insurance transactions,\nteaching and some real-estate rentals are the main services exempted from VAT.\n<\/p>\n\n\n\n

          Foreign service providers established in France charge VAT to their foreign clients in\naccordance with the nature of their services and their place of business. For intangible\nservices for example (consultancy, telecommunications, advertising, data processing,\nfinancial services, etc.), the foreign service provider must collect the VAT when the service is\nprovided to a client in France and is exempt from the VAT when the client is in another\ncountry.\n<\/p>\n\n\n\n

          Reduced rates of VAT for many goods and services : The standard rate of VAT on the sale of\ngoods and services is 19.6% but lower rates are applicable in many cases. In particular, the\nrate is 5.5% for some agricultural products, medicine (5.5 % to 2.5%), books, public transport,\nnewspapers and magazines (5.5% to 2.1%), some types of entertainment, etc.\n<\/p>\n\n\n\n

          (iii) Exemptions from customs duty and the VAT\n<\/h5>\n\n\n\n

          They include:
          \n– Goods imported for re-export
          \n– In certain cases, alterations or repairs to goods for subsequent re-export
          \n– Imports of goods for storage in France for maximum of 3 years in a warehouse
          \n– There are also three zones such as Guadeloupe where goods may be stored free of customs\nduty and VAT for up to 5 years
          \n– There exist a certain number of import subsidies which mostly involve exemptions or\nreductions in customs duties for goods entering France
          \n– These measures are largely directed at products from developing countries (Africa, Central\nor South America), from the former Soviet countries and from China.\n<\/p>\n\n\n\n

          b. The Export of Services to France <\/em><\/h4>\n\n\n\n

          Foreign entities engaged in the supply of services are subject to compliance with certain\nrequirements prior to providing services in France. Each service sector, be it insurance,\nbanking, financial services, architecture, legal services, accountancy, audiovisual\ncommunication, data processing, advertising, etc. has its own particular requirements that will\nbe detailed hereinafter.\n<\/p>\n\n\n\n

          One should bear in mind that foreigners must have a Tradesman Identity Card. The foreign shareholders of a “Soci\u00e9t\u00e9 en Nom Collectif”, of a “Soci\u00e9t\u00e9 en Commandite Simple” or “par actions”, the managing director of a “S.A.R.L.”, the President of the Board of Directors in a “SA”, etc., are also obliged to obtain this document. <\/p>\n\n\n\n

          d. Conditions imposed on non-EU workers in France <\/em><\/h4>\n\n\n\n

          A non-EU national intending to work or conduct any commercial activity in France must have\na longterm visa and\/or a business permit before doing so.\n<\/p>\n\n\n\n

          (i) long-term Visas\n<\/h5>\n\n\n\n

          A long-term visa is granted as a right to any person who will be working in France and a\nFrench Consulate has received notice that a business or work permit has been issued to that\nperson; It may take up to four months to process a visa application. U.S. nationals must apply\nat their local French Consulate for a long-term visa.\n<\/p>\n\n\n\n

          Since the SCHENGEN Agreement an overseas person holding a title delivered by one of the\nsignatory countries already mentioned above is normally entitled to enter in France.\n<\/p>\n\n\n\n

          (ii) Business Permits\n<\/h5>\n\n\n\n

          Any non-EU national proposed to be appointed as a manager or officer of the French\nsubsidiary of a foreign-based company must hold a current French business permit.\nApplication for such permit is made at the appropriate French consulate.\n<\/p>\n\n\n\n

          A business permit will subject a U.S. national (or any other Non-EU national) to the\nappropriate French labor and social security laws.\n<\/p>\n\n\n\n

          Besides any National in possession of a Resident Card is allowed to work in France in any\nfields for 10 years. This card is automatically renewable.\n<\/p>\n\n\n\n

          (iii) Social Welfare; Employment Conditions\n<\/h5>\n\n\n\n

          The relations between employers and employees are governed by the French Labor code,\ncollective bargaining agreements (union agreements), company regulations and individual\nemployment contracts.\n<\/p>\n\n\n\n

          In accordance with the Non discrimination principle stated in the International Labour\nConvention N\u00b0 111 as well as in the Treaty of Rome, foreign workers benefit from the same\nrights and work conditions as French employees.\n<\/p>\n\n\n\n

          An employment may be for an indefinite or definite period. The Labor Code sets out\nminimum standards of working conditions such as hours, overtime, and paid leave (including\nvacation).\n<\/p>\n\n\n\n

          France has a mandatory system of social security covering health risks for salaried employees.\n<\/p>\n\n\n\n

          The system is financed by contributions from both employees and employers. Contributions\npaid by the employer can rise to about 45% of gross salaries. Contributions to social security\nare tax-deductible.\n<\/p>\n\n\n\n

          For foreign employees, double contributions are avoided by international reciprocity\nagreements on social security concluded with France.\n<\/p>\n\n\n\n

          Pursuant the “Free Movement of Persons” European principle an employee regularly\nemployed and resident in a Member State of the EU may work with a minimum formalities in\nany other Member State whatever his or her nationality may be (European or not).\n<\/p>\n\n\n\n

          D. Certain Rules Concerning Some Specific Fields of Services. <\/em><\/strong><\/h3>\n\n\n\n

          a. Architects <\/em><\/h4>\n\n\n\n

          This profession is strictly regulated in France. The laws, rules and regulations tend to protect\nthe monopoly of architects on one hand, and the title of Architect on the other (Law 77-2 of\nJanuary 3, 1977 amended by the Law of July 12, 1985; Ordinance 78-67 of January 19, 1978;\nOrdinance 80-217 of March 20, 1980, establishing a Code of Professional Responsibility of\nArchitects).\n<\/p>\n\n\n\n

          (i) Monopoly\n<\/h5>\n\n\n\n

          The architect, according to French Law, is defined as the prime contractor to whom the owner\nmust address himself for any construction or renovation job which requires a building permit.\n<\/p>\n\n\n\n

          In all cases where a building permit is necessary (i.e., for all new constructions, for all\nchanges in the purpose of an existing construction or all modifications carried out on its\nvolume or its outer appearance), the architect has to establish an architectural plan before such\npermit can be issued.\n<\/p>\n\n\n\n

          Such a plan consists of drawings and documents defining “the positions of the building, their\ncontent, organization and volume, as well as the choice of materials and colors”.\n<\/p>\n\n\n\n

          The execution of the work may be entrusted to a contractor, but the architect must always\nensure that the project is being followed as it has been approved by the authorities who have\nissued the building permit.\n<\/p>\n\n\n\n

          Furthermore, the architect may participate in the following:
          \n– Town planning and development, including preparation of drawings\n– Allotment of land
          \n– Preparation of programs
          \n– Consulting of firms
          \n– Preparation of public calls for bids
          \n– Coordination and direction of works
          \n– Providing assistance to owners
          \n– Consultancy and expert appraisal
          \n– Teaching\n<\/p>\n\n\n\n

          Architects are required to obtain insurance covering their professional responsibility.\n<\/p>\n\n\n\n

          They can group themselves and form a partnership with others of different means or\nprofessions, or form a corporation for which they will work. In the latter case the partners\nmust comply with the following rules:\n<\/p>\n\n\n\n

          – The shares of the company must be nominative shares
          \n– More than 50% of the nominative capital must be held by architects
          \n– The membership of a new partner is subject to the prior agreement of the General Meeting\nof shareholders. The decision must be taken by a two-third majority.
          \n– None of the partners can hold more than 50% of the nominative capital
          \n– The chairman of the board of directors, the general manager (if he is alone), at least half of\nthe managers and members of the board of directors, as well as the majority of the board of\ndirectors and administrators must be architects.\n<\/p>\n\n\n\n

          (ii) Protection of the title\n<\/h5>\n\n\n\n

          The illegal use of the title of architect is subject to criminal sanction.\n<\/p>\n\n\n\n

          To ensure the protection of the title, there is a professional body which guarantees the\napplication of professional rules and regulations. It has the authority to take disciplinary\naction and controls the access to the profession through inscription on the Roll.\n<\/p>\n\n\n\n

          Furthermore, a code of ethics enumerates the architect’s obligations.\n<\/p>\n\n\n\n

          Thus, in principle, to join this profession, three conditions must be fulfilled:<\/p>\n\n\n\n

          1. Possess one’s civil rights and provide evidence of good moral character. <\/li>
          2. have obtained a degree, certificate, or other title recognized by the French government.<\/li>
          3. be French, or the national of another Member State of the European Community, or the national of a third country which has signed a convention of reciprocity with France.<\/li>
          4. There is no such convention between France and Canada, or the United States. – A North American cannot therefore practice as an architect in France, unless he has dual nationality, one of which is of an EU country.<\/li>
          5. In the latter case, the degree he or she holds must appear on the list of foreign degrees recognized as being equivalent to French diplomas by an order of the Ministre de l’Urbanisme, du Logement et des Transports (Ministry of Urbanism, Housing and Transport). <\/li><\/ol>\n\n\n\n

            Nevertheless, the Law of January 3, 1977 and the Ordinance of January 16, 1978, mention four exceptions to the condition regarding French nationality:<\/p>\n\n\n\n

            1. A foreign architect can be authorized to practice by a decision of the Ministre de\nl’Urbanisme, whose decision is taken after hearing the opinion of the Ministre des Relations\nExt\u00e9rieures (Secretary of State). But in practice, the Ministre des Relations Ext\u00e9rieures bases\nhis decision mainly on the existence of a convention of reciprocity with the country of origin\nof the candidate. The situation is quite unfavorable for Canadians as the possibilities for\nFrench architects to practice in Canada are very much restricted.\n<\/p>\n\n\n\n

            2. The Ministre de l’Urbanisme may allow a foreign architect to register in France, upon\npresentation of professional references, and after taking into account the opinion of a national\ncommission. But this rule only concerns exceptional cases, where the candidate has already\ncompleted works of great importance.\n<\/p>\n\n\n\n

            3. The Ministre de l’Urbanisme can authorize an architect to carry out a specific project in\nFrance, either after hearing the opinion of the Conseil National de l’Ordre des Architectes, or\nas a result of a contest of which he or she was the prize-winner.\n<\/p>\n\n\n\n

            Within this context, then, the authorization of the Minister is practically automatic.\n<\/p>\n\n\n\n

            It is to be noted that competitions are advertised in the bulletin of the Union Internationale des\nArchitectes (U.I.A. – International Union of Architects).\n<\/p>\n\n\n\n

            4. Finally, the law provides for persons having effectively practiced as architects in France\nbefore 1977 to be recognized and approved by the Ministre de l’Urbanisme, after receiving the\nopinion of a regional commission, and on these grounds to be authorized to work as an\narchitect.\n<\/p>\n\n\n\n

            However, this procedure seems quite impractical at the moment as 2,000 applications have\nalready been submitted, and l’Ordre des Architectes is not at all favorable to this procedure.\n<\/p>\n\n\n\n

            The application to register should be made to the Conseil R\u00e9gional de l’Ordre des Architectes\nof the area in which the candidate wishes to practice.\n<\/p>\n\n\n\n

            In cases 1, 2, and 3, however, if the candidate is the prize-winner of a competition, the\napplication should be made directly to the Direction de l’ Architecture du Minist\u00e8re de\nl’Urbanisme.\n<\/p>\n\n\n\n

            In all cases, the application must be accompanied by the documents which prove that the\ncandidate fulfills the statutory conditions.\n<\/p>\n\n\n\n

            In practice, North American architects in France practice in partnership with French\narchitects.\n<\/p>\n\n\n\n

            Indeed, the real problem is not the access to the profession, but the lack of knowledge of\nFrench rules and regulations and of French practice, especially regarding the employment of\nsalaried workers, the making of contracts, the technical regulations (control of materials, etc.)\nand the possibility of entering into a partnership with an engineering firm.\n<\/p>\n\n\n\n

            b. Consultancy in Management of Firms and Civil Engineering <\/em><\/h5>\n\n\n\n

            All individuals, whether French or foreign, can establish a firm of consultants.\n<\/p>\n\n\n\n

            This is why there is a proliferation of Anglo-Saxon management consultant firms in Paris.\nThe field of activity of these firms is wide and mostly include auditing, counsel in matters of\nstrategies (product – market) and counsel in matters of organization.\n<\/p>\n\n\n\n

            This is also true in the field of civil engineering. There are no laws, rules or regulations which\nlimit the use of the title of Consultant Engineer, unlike the diploma of engineer obtained from\na particular university which is strictly regulated.\n<\/p>\n\n\n\n

            However, the members of these professions have sometimes felt that the absence of rules and\nregulations was a negative factor, and have founded organized professional bodies with a\ncode of deontology.\n<\/p>\n\n\n\n

            This is the case with the Chambre Syndicale des Ing\u00e9nieurs-Conseils (Consultant Engineers\nCommittee), and the Chambre Syndicale Nationale des Conseils en Recrutement (Recruitment\nConsultants National Committee).\n<\/p>\n\n\n\n

            There is no mandatory obligation for consultant firms to take malpractice insurance coverage.\n<\/p>\n\n\n\n

            Nevertheless, these firms are strongly advised to do so, and it is mandatory in order to become\na member of certain associations.\n<\/p>\n\n\n\n

            In the particular case of recruitment of consultants, the activity, even though not governed by\nany laws, is curtailed by the monopoly which is conferred to the Agence National Pour\nl’Emploi (A.N.P.E.) – (National Agency for Employment) by a Government Order of 1945\nregarding employment.\n<\/p>\n\n\n\n

            Where an intermediary acts as the authorized agent of a person seeking employment (whether\nunemployed or not), on his behalf, with a person offering employment, the A.N.P.E.’s\nmonopoly is infringed. The recruitment consultant who acts as the authorized agent of a firm,\nproviding it with candidates does not infringe the monopoly of the A.N.P.E.\n<\/p>\n\n\n\n

            Recruitment consultant firms may seek candidates by (i) advertising or (ii) direct contact: (i)\nAdvertising is usually done through newspapers.\n<\/p>\n\n\n\n

            The consultant, in this case shall have to comply with the statutes and regulations relating to\nemployment ads in the newspapers (Code du Travail – Labor Code, Article L 311-4).\n<\/p>\n\n\n\n

            In particular, it is prohibited to advertise a job offer:<\/h5>\n\n\n\n

            (i) indicating a maximum age limit (except where a law, rule or regulations contains a requirement regarding age) containing false allegations (e.g., duration of employment, remuneration, place of work) discriminating on the basis or origin, race, religion, or sex, or written in a foreign language or with foreign expressions having equivalent translations in French and concerning work carried out in France. There is, however, an exception for foreign language publications. <\/p>\n\n\n\n

            In addition, the consultant must give to the Director of the newspaper the name, corporate\nnames, and address of the anonymous client for whom the advertisement is published.\n<\/p>\n\n\n\n

            (ii) The recruitment consultant also operates by direct contact, that is to say that he or she acts\nas a head-hunter.\n<\/p>\n\n\n\n

            Certain precautions must be taken in order to ensure that such a practice does not amount to\nunfair competition.\n<\/p>\n\n\n\n

            It is constantly stated through case law that to bring an employee to quit his employment\namounts to unfair competition if the person was employed under a non-competition clause or\nif the incitement to leave is accompanied by actions which are prejudicial to the new\nemployer.\n<\/p>\n\n\n\n

            In the latter situation, to entice a worker to leave by offering him abnormal advantages with a\nview to weaken the organization or to embezzle the assets of a rival company, amounts to\nunfair competition\n<\/p>\n\n\n\n

            c. Audio-visual Communication <\/em><\/h5>\n\n\n\n

            The Statute N\u00b0 86-1067 of September 30, 1986 relating to the freedom of communication\nprovides created a Commission Nationale de la Communication et des Libert\u00e9s (National\nCommission for Communication and Liberties). This commission was replaced by a Conseil\n<\/p>\n\n\n\n

            Sup\u00e9rieur de l’Audiovisuel (C.S.A.) – (Superior Council on the Audiovisual Industry) under\nStatute N\u00b0 89.652 of January 17, 1989.\n<\/p>\n\n\n\n

            According to the principle which prevails in France and in the EU, Audiovisual\ncommunication is free ; it may only be limited by reason of a motivation expressly stated in a\nstatute.\n<\/p>\n\n\n\n

            Ordinarily this motivation consists of complying with human rights principles.\n<\/p>\n\n\n\n

            (i) Conseil Sup\u00e9rieur de l’Audiovisuel (C.S.A.)<\/h5>\n\n\n\n

            The C.S.A. has the following objectives to:<\/p>\n\n\n\n

            1. Ensure impartiality, to encourage free competition, and to foster the broadcasting of a multiplicity of opinions<\/li>
            2. Promote the French language and encourage French productions.<\/li>
            3. Guarantee the impartiality and independence of State-owned installations<\/li>
            4. Ensure the quality and diversity of programming. <\/li><\/ol>\n\n\n\n
              (ii) Powers of the C.S.A.<\/h5>\n\n\n\n

              It authorizes the use of frequency bands, it controls their operation and takes the necessary steps to ensure a proper reception of the signals. <\/p>\n\n\n\n

              The procedure according to which it assigns the use of frequency bands is determined by an ordinance. <\/p>\n\n\n\n

              The use of frequencies for the transmission of audio-visual or radio communication services\nby terrestrial hertzian means is subject to the technical conditions specified by the CSA. These\nconditions are set up according to criteria defined by the law of September 30, 1986, amended\nby the law of January 17, 1989.\n<\/p>\n\n\n\n

              Ordinances shall fix the rules applicable to advertising, broadcasting of films and other audio-\nvisual productions. These rules shall be established for each category of audio-visual\ncommunication services transmitted either by terrestrial hertzian means or by satellite.\n<\/p>\n\n\n\n

              The Statute of January 18, 1992 specifies that a proportion of European audio-visual\nproductions and the broadcasting of films must represent 60% of the production diffused and\nat least 40% of them must be productions in the French language.\n<\/p>\n\n\n\n

              However, the C.S.A. reserves its rights to fix the general rules applicable to the preparation of\nprograms, and to fix the general conditions for the production of the artistic works\nbroadcasted.\n<\/p>\n\n\n\n

              In particular, the C.S.A. fixes the duration of the authorization. The authorization cannot\nexceed 10years for television services and 5 years for radio broadcasting services.\n<\/p>\n\n\n\n

              The operation of audio-visual communication services broadcasted by hertzian means or by satellite is subject to special obligations defined by the C.S.A. and included in an agreement between the operator and the C.S.A. <\/p>\n\n\n\n

              These agreements will include:<\/p>\n\n\n\n

              1. quality and duration of programming <\/li>
              2. honesty and multiplicity of the information and the programs<\/li>
              3. time allocated to the broadcasting of French works, primarily during prime time<\/li>
              4. time allocated for the broadcast of cultural, educational, and consumer protection programs<\/li>
              5. broadcasting to French overseas departments and territories<\/li>
              6. broadcasting of French programs abroad<\/li>
              7. extent of time reserved for advertising. <\/li><\/ol>\n\n\n\n
                (iii) Radio and Television Broadcasting by Terrestrial Hertzian Means <\/h5>\n\n\n\n

                The use of frequencies for the broadcasting of radio or television services by terrestrial hertzian means is authorized by the C.S.A. <\/p>\n\n\n\n

                The procedure is the following one:
                \nFor certain predetermined zones, the C.S.A. publishes a call for candidates seeking to operate\nradio or television broadcasting services.\n<\/p>\n\n\n\n

                The candidates are either non-profit companies or associations registered according to the\nLaw of July 1, 1901.\n<\/p>\n\n\n\n

                The candidates must indicate in particular, the objectives and general characteristics of the\nservice, the technical characteristics of the broadcasting, the estimates regarding expenditure\nand returns, the origin and the amount of the financing provided for, as well as the list of\nadministrators, members of the Board of Directors and shareholders.\n<\/p>\n\n\n\n

                The C.S.A. finalizes a list of frequencies which can be allotted within a given zone in\nconsideration of the various applications.\n<\/p>\n\n\n\n

                The Council issues the authorization after studying and assessing the value for the public of\neach project, with respect to the following three main priorities:
                \n– the protection of the multiplicity of socio-cultural expression
                \n– the diversification of operators\n<\/p>\n\n\n\n

                – prevention against the abuse of a dominating position in the market, or unfair competition.
                It also takes into account, for both radio and television license applicants:
                1 – the experience acquired by the candidate in the field of communication;
                2 – the financing, the profitability of the service, and whether the advertising resources will be well distributed between the newspaper companies and audio-visual or radio communications services;
                3 – the direct and indirect share held by the candidate in the capital of one or more state- controlled advertising companies or in the capital of one or more newspaper publishing companies;
                4 – the commitments of the candidate, regarding the broadcasting of French works, that are being broadcasted for the first time in France. and for television licenses applicants only:
                5 – the broadcasting of educational and cultural programs;
                6 – the involvement in educational and cultural activities;
                7 – the contribution made to the broadcasting of television programs in French overseas territories;
                8 – the contribution made to the broadcasting of a television program in foreign countries;
                9 – the financial contribution made to the film and audio-visual industries. <\/p>\n\n\n\n

                The use of frequencies for satellite radio and television broadcasting is authorized by the C.S.A., according to procedures established by ordinance. The authorizations can be issued only to companies.<\/p>\n\n\n\n

                (iv) Radio Broadcasting and Television Distributed by Cable <\/h5>\n\n\n\n

                Towns or groups of towns may install or authorize the installation of networks on their territory for the distribution by cable of radio and television services.
                However, the statute N\u00b0 96-299 of April 10, 1996 which refers to experiments in technological and information field provides impairments to the existing statutes. <\/p>\n\n\n\n

                By and large, this text permits the realization, under specified conditions, of experimental\nprojects such as Digital Television broadcasted by Hertzian Terrestrial means and\nbroadcasting by microwave multiunit distribution system.
                \nIn such circumstances, the CSA is entitled to grant authorizations without proceeding to a call\nfor candidates.\n<\/p>\n\n\n\n

                The system is much more conventional than the former in order to adjust the legal conditions to these new technologies which involve the broadcasting of numerous services through only one frequency.
                These networks must comply with the technical specifications set by the C.S.A. <\/p>\n\n\n\n

                The operation of the networks thus established is authorized by the C.S.A. upon a petition by\na town or a group of towns. This authorization can be issued only to companies. It indicates\nthe number and the nature of the services to be distributed, and can mention certain\nobligations of which it defines the conditions.\n<\/p>\n\n\n\n

                These obligations concern one, or more, of the following\n<\/p>\n\n\n\n

                1 – The retransmission of programs broadcasted by hertzian means normally received in the zone.
                2 – Broadcasting of a minimum number of their own programs.
                3 – The allotment of a channel reserved for local news and information concerning the town, to the town, or the group of towns concerned, on a full-time or part-time basis.
                4 – The payment of a tax to the town or group of towns by the operating company. <\/p>\n\n\n\n

                An ordinance establishes:
                1 – The rules regarding the duration of the authorization
                2 – The general rules concerning the schedule of programs
                3 – The general rules for the production of the works broadcasted
                4 – The rules applicable to advertising
                5 – The hours of the films and audio-visual works broadcasted<\/p>\n\n\n\n

                (v) Rules Applicable to all Services Which are Subject to Authorization<\/h5>\n\n\n\n

                The law establishes certain guidelines in order to ensure a multiplicity of views: Television by Hertzian Terrestrial Means
                The same individual or legal entity cannot, directly or indirectly, hold more than 25% of the capital, or of the voting rights of a company having an authorization to operate a national television service by hertzian terrestrial means.
                Where an individual or a legal entity holds more than 15 % of the capital or the voting rights of a company which holds such an authorization, it cannot hold more than 15 % of the capital or of the voting rights of two companies having such an authorization; it cannot hold more of another company having a similar authorization. <\/p>\n\n\n\n

                Firthermore, where an individual or a legal entity holds more than 5 % of the capital or of the\nvoting rights of two companies having such an authorization it cannot hold more than 5% of\nthe capital or the voting rights of another company having a similar authorization.
                \nTelevision by Satellite and Television Transmitted Through Frequencies Attributed to Radio\nBroadcasting\n<\/p>\n\n\n\n

                An individual or a legal entity cannot hold, directly or indirectly, more than 50 % of the\ncapital or of the voting rights of a company having an authorization regarding a television\nservice which is broadcasted exclusively through frequencies attributed to radio broadcast and\nto television by satellite.\n<\/p>\n\n\n\n

                Where an individual or a legal entity holds, directly or indirectly, more than a third of the\ncapital or of the voting rights of a company having such an authorization, it cannot hold more\nthan a third of the capital or of the voting rights of another company having a similar\nauthorization.\n<\/p>\n\n\n\n

                Furthermore, where an individual or entity holds more than 5 % of the capital or voting rights\nof two companies having the authorization mentioned above, it cannot hold more than 5% of\nthe capital or of the voting rights of another company having a similar authorization.\n<\/p>\n\n\n\n

                Capital held by Foreigners\n<\/h5>\n\n\n\n

                A French national cannot carry out an acquisition which will result, directly or indirectly, in\nforeigners holding more than 20% of the registered capital or voting rights of a company\nhaving an authorization regarding radio broadcasting or television service in the French\nlanguage through hertzian terrestrial means.\n<\/p>\n\n\n\n

                In an European perspective, the broadcasting of television programs is submitted to the\n“Home Country Control” principle whereby a program regularly authorized in a Member\nState must be received in the other Member States without any additional control.\n<\/p>\n\n\n\n

                d. DataProcessing <\/em><\/h5>\n\n\n\n

                Neither the conditions of access to professions related to data processing nor its practice are\ngoverned by any particular rules or regulations.\n<\/p>\n\n\n\n

                Thus, no specific degree is required in order to declare oneself, manufacturer, designer,\nconsultant, etc. in data processing. Also, there is no professional organization supervising the\npersons or firms pursuing these activities.\n<\/p>\n\n\n\n

                Such persons or firms can if they so desire, become members of associations, the main\nobjective of which is to promote and defend the professional, moral and economic interests of\ntheir members.\n<\/p>\n\n\n\n

                Thus, Canadian and U.S. residents can have access to the French data processing market.\n<\/p>\n\n\n\n

                An administrative organization called Agence de l’Information (Information Agency) has\nbeen created.\n<\/p>\n\n\n\n

                This Agency is responsible for promoting data processing.\n<\/p>\n\n\n\n

                With this objective in view, the Agency: <\/p>\n\n\n\n

                • provides its support and cooperation to public and private research concerning the use of data processing and the techniques which are liable to encourage their development<\/li>
                • investigates new uses of data processing<\/li>
                • investigates and participates in the experimentation of new applications of data processing. <\/li>
                • organizes the collection and distribution of French and foreign information about the use of data processing and the research which is done in this field.<\/li>
                • aims at acquainting potential users with data processing. <\/li>
                • participates in education of potential users and in disseminating the new applications of data processing, and in the preparation of corresponding methodologies.<\/li>
                • gives its opinion regarding the granting of government assistance to particular projects in data processing technology research. <\/li>
                • informs the government of all the problems encountered in the field of data processing.<\/li><\/ul>\n\n\n\n

                  Data processing and electronics are considered by the Direction du Tr\u00e9sor (Treasury Department) to be sensitive fields of activity. Accordingly, prior declarations of foreign investments in France in the field of data processing are subject to more detailed scrutiny than in the case of investments made in other fields of activity. The examination is carried out by the Direction du Tr\u00e9sor. Although this remains the exception, the Direction du Tr\u00e9sor has exercised its right to oppose the investment when the latter had a direct relation with the data processing or electronics industry. In certain cases, the Direction du Tr\u00e9sor subjects the investment to certain conditions. For example, in the case of a commercial investment, it may prohibit the importation of certain products, or, in the case of an industrial investment, it may require that a percentage of the end product be manufactured by French contractors. <\/p>\n\n\n\n

                  e. Advertising <\/em><\/h5>\n\n\n\n

                  There are no specific requirements, other than the general principles of law already examined,\nto establish an advertising agency or to practice as an advertising consultant.\n<\/p>\n\n\n\n

                  Neither the access to nor the practice of this profession are subject to any particular\nregulation. There are no specific degrees or diplomas required either.\n<\/p>\n\n\n\n

                  There is no professional body which organizes and supervises the activities of the profession.\nHowever, the media or owner of the media (newspapers, radio, television, billboard\nadvertising…) often require that the agency should hold the title of “interm\u00e9dia” in order to be\nable to purchase advertising space.\n<\/p>\n\n\n\n

                  Agencies which hold the “interm\u00e9dia” title can benefit from special conditions of sale which\neach medium can establish in their favor.\n<\/p>\n\n\n\n

                  This title is issued to firms and consulting agencies which practice according to criteria set up\nby the International Chamber of Commerce (report of the 128th Session of the Council, June\n1976).\n<\/p>\n\n\n\n

                  The “interm\u00e9dia” title is neither a certificate of professional aptitude, nor a general and\npermanent power of attorney which the media confer to the agencies who hold the title. It\ndoes not prevent the making of special agreements freely signed between the media and these\nagencies.\n<\/p>\n\n\n\n

                  The media remain the sole judges of the conditions imposed upon advertising in their\nadvertising space. In no way does it entitle the agencies to become sole agents between\nadvertisers and the media.\n<\/p>\n\n\n\n

                  “interm\u00e9dia” title is obtained by submitting an application to a commission that awards the title in Paris. <\/p>\n\n\n\n

                  The consulting agency in advertising which applies for the “interm\u00e9dia” title must fulfill the following conditions:
                  carry our their commercial activity in conformity with the laws, rules and regulations in force and with professional self discipline. <\/p>\n\n\n\n

                  undertake to prevent the media to which the agency gives advertising orders from being sued\nfor the latter’s acts.
                  \nensure that the advertising orders will be promptly paid for.
                  \nundertake to provide proof at all times of its capacity to pay for the orders booked by\nproviding payment guarantees, and especially:\n<\/p>\n\n\n\n

                  • by having insurance covering the risks of the advertiser’s insolvency.<\/li>
                  • by obtaining from these clients that they should be jointly responsible with the agency towards the media by countersigning the advertising orders issued to the latter.<\/li>
                  • not to be a central purchasing office of advertising space.<\/li>
                  • practice mainly as an advertising agent. The percentage of the agency’s revenue from advertising (purchase of space, creation, publishing, etc.) must exceed 50 % of its total revenues.<\/li>
                  • provide guarantees of professional proficiency (training, professional experience in an agency or with advertisers). <\/li><\/ul>\n\n\n\n

                    The “interm\u00e9dia” title is conferred by right when the above-mentioned conditions recorded by\nthe commission are fulfilled.\n<\/p>\n\n\n\n

                    French nationality is not listed as one of these conditions.\n<\/p>\n\n\n\n

                    The “interm\u00e9dia” title is delivered by a joint commission, the members of which include\nrepresentatives of the press, of other media and advertising executives. Its composition and its\norganization are fixed by the internal rules and regulations.\n<\/p>\n\n\n\n

                    If the “interm\u00e9dia” title is refused, the concerned agency has the possibility to appeal the\ndecision to the commission, who summons the agency to hear its explanations.\n<\/p>", "protected": false }, "excerpt": { "rendered": "

                    The essentials about EU law for doing business in Europe for potential corporate investors or exporters of goods and services.<\/p>", "protected": false }, "author": 2, "featured_media": 0, "comment_status": "closed", "ping_status": "closed", "sticky": false, "template": "", "format": "standard", "meta": { "_exactmetrics_skip_tracking": false, "_exactmetrics_sitenote_active": false, "_exactmetrics_sitenote_note": "", "_exactmetrics_sitenote_category": 0, "footnotes": "" }, "categories": [ 66 ], "tags": [], "class_list": [ "post-2355", "post", "type-post", "status-publish", "format-standard", "hentry", "category-droit-commercial" ], "yoast_head": "\nGuide Export Europe: A guide to exporting to Europe (En)<\/title>\n<meta name=\"description\" content=\"Guide Export Europe: A legal guide to exporting to Europe for corporate investors or exporters of goods and services looking to do business in the EU.\" \/>\n<meta name=\"robots\" content=\"index, follow, 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