BREXIT: GET READY

BREXIT: GET READY

BREXIT: GET READY 1500 981 Exponens International

BREXIT: GET READY

Published on 03/12/2020

Opportunities in France to respond to the global expansion of your business after Brexit

Since February 1st 2020, the United Kingdom (UK) has withdrawn from the European Union (EU) and has become a third country. The withdrawal agreement provides for a transition period ending on December 31st 2020.
If an agreement is reached before the end of the transition period, it will define the relationships between the EU and the UK in several areas.
Whatever the outcome of the negotiations, European rules will no longer apply to the UK after December 31st 2020. It is therefore essential to prepare for the end of the transition period effective as of January 1st 2021. In the absence of an agreement, trade relations between the UK and the EU would be subject to WTO rules alone.
Faced with these changes, foreign investors will now have to arbitrate in their decisions to set up a business in EMEA territory with the fact that the UK is no longer an EU country. This affects many practical and day-to-day operations such as trade in goods (supply chains, warehouse localisation, customs) and services, people management, compliance with EU regulations (legal, tax, VAT, transfer pricing etc.).
Starting a business in France appears to be the best choice for a group or a foreign business owner who wishes to invest and benefit from the European market.

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The most attractive European country

Foreign investments growth in France are a telling example.

In 2019, France was considered the best destination for foreign investment in Europe and the 13th beneficiary in the world. Thanks to its policies to stimulate investment and innovation, the French industrial base has received more foreign investments, especially for the creation of new sites. The number of projects for research and development (R&D) activities in France is particularly dynamic. Running a business in France is more than ever a pertinent decision for business owner.

The French economy is able to recover quickly and strongly from the health crisis of 2020 thanks to its stable economic and political situation.

The French government has put in place an ambitious recovery plan to support businesses and maintain jobs in France. More than 100 billion euros will be spent to maintain the economy and its growth, and invest in promising sectors. In addition, the tax cut is considered in the recovery plan with a reduction of more than 20 billion euros.

A country with many advantages

A huge and mature market

The French government has put in place an ambitious recovery plan to support businesses and maintain jobs in France. More than 100 billion euros will be spent to maintain the economy and its growth, and invest in promising sectors. In addition, the tax cut is considered in the recovery plan with a reduction of more than 20 billion euros.

Human talents with recognized training and expertise

France is the 5th most popular host country for foreign students thanks to renowned business and engineering schools. The high-level skills of French employees in many areas are recognized. For example, the banking and financial world is not mistaken in relocating their activity previously in London to Paris where a concentration of companies in this sector is already present. Paris thus wishes to become the new financial capital of the euro zone, because there are many opportunities and a business ecosystem is present (large banks, business district, regulators, etc.).

A country looking to the future

With its formidable assets, particularly in the digital field, France is establishing itself as one of the European leaders in the economy of tomorrow. The labour market is very dynamic and allows to collaborate with many talented profiles. More than 10,000 start-ups exist in France, it is easy to create a business. The country is one of the world leaders in the high-tech industry and the digital economy. French Tech is world famous.

Ready to welcome investors from the UK and beyond

Infrastructures are well settled

French harbours are preparing for Brexit to set up the physical and digital infrastructures and to facilitate the new control services that will be required. Harbours, local authorities, customs, and border police have the same goal, that for imports and exports, the transition is as easy as possible.

A framework designed for investors

Investors will benefit from tax credit to improve competitiveness, with for instance, the research tax credit and some incentives for innovative companies. Labour legislation is also moving towards greater flexibility and regularly introduces payroll incentives for hiring in France.
For those who wish to have a light business structure, regarding VAT and payroll in France, all has been setup with dedicated services to facilitate the registration of foreign businesses without permanent establishment.

Related insights:

Brexit – New ways of business for UK company with no PE in France – Read article
Brexit – UK R&D expenses and French R&D tax credit – Read article
Brexit – New ways of business for intragroup relationship – Read article
Brexit – New ways of business with UK for flow of goods – Read article
Brexit – New ways of business for representative offices – Read article

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