Invest in France

FRANCE, EXPECT MORE

Audrey LUCBERNET, Inward Investment Officer
August 2011

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?

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

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

What are their & yours

benefits in France?

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

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-Cte dAzur 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
communi
cation
solutions

IT Clusters specifics

MINALOGIC in Rhne-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-Cte 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 rseaux (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 Rhne-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 Frances 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 -

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: KPMGs Guide to International Business Location - KPMG 2010

DISCOUNTED OFFICE SPACES AVAILABLE

20

REGISTRATION PROCEDURES

Source: World Bank Group

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

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

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

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

28

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

New

investing 5 million euros & create / safeguard 25 jobs

\

How much? The 0% interest rate loan will cover up

to 40% of your investment

3/ Business mobility

NEW
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

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