“Choose France”. This is slogan of the French government in order to attract foreign investors.
As the only structured French business law firm with permanent offices in Israel for years, we at Bersay & Associés have witnessed a change in the perception of France from an Israeli standpoint.
Israeli companies are seriously considering France as a market to expand their business and as a gateway to Europe.
Why should Israeli companies choose France?
Israeli companies in the growth stage:
They will find large clients. France is at the forefront of many industries such as:
- Aerospace, Defense & Security (Safran, Thalès, Zodiac, EADS, Airbus, Dassault, DCN, SAGEM, Alcatel, Eurocopter)
- Automotive (PSA Peugeot Citroën, Renault)
- Energy, Oil & Gas (Total, EDF, Areva, Veolia, ENGIE)
- Infrastructure & Construction (Bouygues, Vinci, Eiffage)
- Transportation & Aviation (Alstom, SNCF, Air France, Airbus)
- Healthcare & Pharmaceutical (Sanofi, Pasteur, Stallergenes)
- Telecommunications (Numericable, Orange, Free)
- Banking (BNP, Crédit Agricole, Société Générale, BPCE)
- Cosmetics and Luxury Goods (L’Oreal, Dior, Hermes, Louis Vuitton, L’Occitane, Bourjois, Lancôme, Sephora, Yves Rocher).
They will profit from the Brexit effect as European financial institutions are relocating to Paris. Significantly, in June 2019 the European Banking Authority moved from London to Paris.
France is a Fintech Hub. It has notably passed a law aiming at boosting the French crowdfunding sector. Another law has been passed which authorized the blockchain mechanism in order to trade unlisted securities. These moves are attracting both Fintechs and SMEs to grow in France.
They can reach a huge market of 67 million people.
Retail companies and any BtoC company can take advantage of France’s big market which will also be its gateway to the rest of Europe.
Israeli startups are choosing France
France has the ideal world-class R&D and innovation tax regimes.
Existing incentives include:
- Reduced Corporate Tax Rate
- 15% corporate tax rate applying to profits resulting from an IP transaction (royalties and capital gains on sale of patent held for more than two years).
- R&D Tax Credit
- Tax credit rate: 30% up to €100 million of the R&D total expenditures, and 5% above this ceiling;
- Possibility to obtain a tax rebate where the company does not owe any corporate tax.
- Young Innovative Companies special tax regime.
- Regular Company Tax: progressively reduced to 25%.
This tax regime is dedicated to French companies meeting some criteria (created in the last eight years, with fewer than 250 employees, less than €50 million in turnover or €43 million in assets, etc.)
They benefit from:
- Total exemption of corporate tax for the first profitable year and then 50% tax relief for the following profitable year (cap at €200,000 in any three-year period).
- Full exemption for seven years from part of the social security contributions for employees dedicated to the R&D operations.
- Exemption from capital gains tax relating (under certain criteria).
Expand your business thanks to France
France is a vast territory composed of thirteen separate regions. Each region is eager to attract foreign companies, able to provide vital market information and even introduce you to potential clients.
Moreover, recent employment reforms have given more visibility and flexibility to companies in France, including:
- Maximum indemnity in case of unfair dismissal, depending of the seniority of the employee.
- Allowing struggling companies to make redundancies in France, even when their overseas business is flourishing.
- Mutual termination agreement which is a smoother way to terminate an employee-employer relationship.
Bersay & Associés has established a reputation for high quality and business-oriented work, linking Israel with France. A wide range of companies, from startups to multinationals, turn to Bersay & Associés when doing business with France.
With the right advisors on your side, you can tackle any challenges and make your business flourish.
Phone: +33 1 56 88 30 00