Invest in France
“FRANCE, EXPECT MORE”
Audrey LUCBERNET, Inward Investment Officer
August 2011
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WHO WE ARE?
• Public entity under the supervision of the French government
• We help Indian companies in identifying the best investment
opportunities in France (from setting-up an office to greenfield projects
and M&A)
• Coordination with the regional authorities of France in order to follow
the different steps of your project: finding a location, proposals of real
estates, benchmark of cost of setting-up, administrative procedures,
recruitment, staff expatriation, public funding, informations on tax and
labour law in France, . . .
Our services are free of cost & confidential
WHERE WE ARE?
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ALLOCATION OF FDIs IN EUROPE
- Number 1 in
Europe in term of
amount of FDIs
- Number 2 in
Europe in term of
number of projects
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ALLOCATION OF FDIs IN FRANCE
PER ORIGIN & PER INDUSTRY
INDIAN INVESTMENTS IN FRANCE
France welcomes Indian Investments
- 100 Indian
companies in
France
- hiring 7000
employees
- 60 000 Indian
citizens living in
France
France welcomes Indian Investments
Production &
manufacture
8
8
33
17
33
Business to Business
Services
Decision making
centers
R&D, engineering &
design
Business to Consumer
services
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What are their & yours
benefits in France?
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THE MARKET
• The 2nd largest economy
in Europe with access to
500 million consumers
• The Gateway to your
business in Europe, Africa
& French speaking
countries
THE FRENCH SPEAKING MARKET
France gives you access to more than 40 French speaking
countries … thats is to say more than 200 millions French
speaking persons for which French is the native and
administrative langage
France gives you also access to the Schengen Area
Schengen Area = 25
member States
• Including
Switzerland since
December 2008
• UK and Ireland are
not member States
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THE MARKET
Food industry: 1st rank in Europe
Life sciences: 1st rank in Europe
Aerospace: 1st rank in Europe
Chemical industry: 2nd Rank in Europe
Automotive industry: 2nd rank in Europe
IT: 3rd rank in Europe
IT Market in France, Key figures
- Turnover: 112 billion euros
telecommunications (€55.7 billion), IT (€13.4 billion) and electronic goods (€8.4billion)
- Represents 16% of the European market
- Represent a workforce of 1 335 000 employees
- Important French leaders in IT: Alcatel-Lucent (telecoms and network equipment manufacturer),
Dassault Systems (software development) France Telecom (telecommunications), Gemalto (world
leader in the production and marketing of smart cards), Vivendi (communication and entertainment),
Cap Gemini and Atos Origin (IT consulting).
- Presence of international companies: Microsoft set up an R&D center dedicated to the search
engine "Live Search“ in Paris ; Huawei Technologies Co. Chinese telecoms supplier set-up a training
center, including laboratories and classrooms & 2 R&D centers ; British firm Cambridge Silicon Radio
SARL extended its R&D center in 2010 dedicated to wireless communications. It is located in the
Provence-Alpes-Côte d’Azur region.
IT Clusters,
source for research & partnership opportunities
Media &
network
Secure
electronic
transaction
s
Cap
digital
System
@atic
Imaginove
Elopsys
Minalogic
Lasers
Aerospace
valley
Complex
optical &
Imaging
system
Secure
communic
ation
solutions
IT Clusters specifics
MINALOGIC in Rhône-Alpes, which fosters innovation in the development and production of
intelligent miniaturized products and services for industry (micro-nanotechnologies and embedded
software intelligence). www.minalogic.org
SCS (Secure Communication Solutions) in Provence-Alpes-Côte d'Azur, which focuses on the
design and development of new solutions - integrating components, software, networks and
systems - for safe and reliable data exchange and processing. www.pole-scs.org
SYSTEM@TIC in Ile-de-France, which specializes in ICT and encompasses complex systems and
generic software, electronics and optoelectronics technologies. www.systematic-paris-region.org
Images et réseaux (Media and Networks) in Bretagne (Brittany) and Pays-de-la-Loire. This
cluster specializes in communication networks and new digital image technologies. www.images-etreseaux.com
IT Clusters specifics
Cap Digital in Ile-de-France, which specializes in the creation, distribution and multimedia exchange of digital
content. www.capdigital.com
TES (Secure Electronic Transactions) in Basse-Normandie, which focuses on secure data exchange, digital
identity and financial transactions. www.pole-tes.com
Imaginove, in the Rhône-Alpes region, which aims to develop synergies between the different branches of the
moving image sector (video games, cinema, audiovisual, animation and multimedia). www.imaginove.fr
Aerospace Valley, in the Midi-Pyrenees & Aquitaine regions is the leading cluster in the field of aeronautics,
space and embedded systems, with over 1,600 firms, 8,500 researchers and 1/3 of France’s workforce in
aeronautics. Among its research programs, the cluster hosts a top-of-the-line research center in navigation,
positioning and telecommunications http://www.aerospace-valley.com/
As a matter of fact …
- Opportunities for organic growth:
To be close to your prospects or existing clients & to create more confidence towards them
To organise the administrative and visa procedures on your own
- Opportunities for inorganic growth:
Availability of companies which are under chapter 11 or whose CMD is going for retirement
Ready made solution & access to technologies & skilled workforce
- Opportunities linked with the language
Access to France & French speaking countries / clients
Front operations in France, back up office in Africa
- Opportunities in R&D:
Partnership in the clusters
R&D tax credit which cut down your expenditures by 40% the first year
- As a result, 50% of the Indian companies based in France are from IT -
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COMPETITIVE COSTS OF SETTING-UP
Index of total business costs
(Overall results US=100.0)
The cost of doing
business in France is
competitive
(costs inclusive labour,
facilities costs,
transportation, utilities and
taxes)
Source: Competitive Alternatives: KPMG’s Guide to International Business Location - KPMG 2010
DISCOUNTED OFFICE SPACES AVAILABLE
20
REGISTRATION PROCEDURES
Source: World Bank Group
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INDIA & FRANCE: STRONG STRATEGIC PARTNERS
• Nuclear agreement in Oct 2008
• Social security agreement ratified beginning 2011
• Trade increase by more than 20% a year
• Trade between India and France
• Global trade of 9 billion USD
• 700 set-up in India, 180 000 employees
• 100 set-up of Indian companies in France, 7 000 employees
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LATEST FUNDAMENTAL
REFORMS OF
ATTRACTIVENESS
LATEST FUNDAMENTAL REFORMS
OF ATTRACTIVENESS
In order to bolster the attractiveness of France, the French gouvernment
under the governance of President Sarkozy, has implemented more than
50 reforms
1/ More flexibility in the labour market
2/ More welcoming incentives
3/ A better business mobility
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1/ More flexibility in the labour market
 Increase the working time
The working time is negotiated in each company.
Maximum of 48 hours a week (according to European rules).
Employers benefit from exemptions from tax and social
security contributions for overtime hours
Employees have an increment of 25% of their salary for
overtime hours
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1/ More flexibility in the labour market
 Period trial increased by 2 months
- Employers can increase the trial period for blue collars and
employees to 4 months
- Employers can increase the trial period for management staff to
8 months
 Termination by mutual consent
Inspired by the USA and UK agreement, termination by mutual
consent between the employee and the employer
3. for foreign companies
2/ More welcoming incentives
France offers the best research tax credit
in Europe:
This bonus provides a research tax credit rate of 40%
the first year, 35% the second year, and 30%
the third year & consecutive years
2/ More welcoming incentives
Example how to calculate
the R&D tax credit
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2/ More welcoming incentives
A new financial incentive to support investment projects
What is it? a 0% interest rate loan
Who can benefit? Companies < 5000 employees
investing 5 million euros & create / safeguard 25 jobs
New
\
How much? The 0% interest rate loan will cover up
to 40% of your investment
3/ Business mobility
New Delhi
NEW
Kolkata
Mumbai
2 new visa sections
Bangalore
Pondicherry
3/ Business mobility
A welcoming business environment for foreign managers
General Manager
Employees
(CEO, CFO,… in charge
of the Fench subsidiary)
Intra Group Mobility
« The Skills and Expertise
permit »
Temporary Residency Permit
«expatriated salaried employee»
3-year work & residence permit
Renewable
Permission granted to spouses
to be employed in France
3-year work & residence permit
Assignment or expatriated
Permission granted to spouses
to be employed in France
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3/ Business mobility
10 years residence permit
for exceptional economic contributions
Your investment must meet one of the following thresholds
• A business plan which creates or saves 50 jobs, or
• Investment of €10 million in tangible or intangible assets
NEW
3/ Business mobility
A new Social security treaty between India and France
 What is it?
Indian workers being assigned to France will be exempted from
contributions to the retirement funds
 What is your benefit?
25% reduction of the quarterly contribution to be paid
NEW
Thanks for your attention
& Bonne chance!
Invest in France Agency
Embassy of France in India
2/50E Shantipath, Chanakyapuri
110 021 New Delhi
audrey.lucbernet@investinfrance.org
Tel.: + 91 11 43 19 63 30
www.investinfrance.org