France Capital Paris Currency Euro (EUR) Language French Population 60.75 million EU status member GDP 2006 $2.13 trillion Employment 80.9% Exports $490 billion f.o.b. (2006 est.) Imports $529.1 billion f.o.b. (2006 est.)

setting up business Number of days to start business 8 Cost (% of income per capita) 1.1% Nonwage labor cost (% of salary) 47.4% Total tax rate (% profits) 68.2%

France

La Defense, Paris’ modern office district

With an economy worth some two trillion dollars – the sixth largest in the world – France is one of the largest and most sophisticated markets in Europe. A central location, some of the best transport links in the region, and a variety of government support for businesses seeking to invest in the country have made it an increasingly attractive target for investors over the years. The French government has identified maintaining an attractive investment climate as a priority, and a number of initiatives are in place to attract and retain foreign investors. Investment regulations are straightforward, and likely to remain that way. The government has put moves in place to liberalize the employment market, and FDI has doubled since 2004.

France and the US

US companies are by far the biggest outside investors in France, and have been responsible for some 31% of FDI projects over the last five years – followed by Germany, at 14% and the UK at 11%. According to figures from the French Ministry of Foreign Trade, Us investment in France continued to rise for the fourth year in a row in 2006, and was responsible for almost a quarter of the 40,000 jobs created in France last year. According to Phillipe Favre, chairman and ceo of the Invest in France Agency, these are the best results since France launched its annual review of FDI in 1993, and reflect the improvement in the French business environment over the past several years. In total, US investment in France is valued at some $171 billion.

Strength in numbers

As part of its strategy to strengthen and develop its flourishing high-tech economy, France is supporting the creation and development of some 67 “competitiveness clusters”. Six of these have already been identified as “worldclass”.

These clusters focus on:

• Telecommunications
• Virology
• Software
• Nanotechnology
• Aeronautics and aerospace
• Healthcare and medical technology.

Additional assistance is available for foreign companies locating to these clusters, including exemption from tax and social security charges, up to a maximum of €100,000 over three years.

Thriving IT sector

France is well known as a leading technical innovator, with an excellent education system and high levels of scientific expertise. The IT and high-tech sectors are thriving – according to Forbes magazine, France ranks among the top three most wirelessaccessible countries in the world, indicating a sophisticated and fast-developing marketplace. Since 2002, there have been some 313 ICT projects launched in France by foreign direct investors. A number of clusters have been established to attract further investment, such as the digital cluster in Lyon.

research & development

There is a considerable amount of support available for corporate R&D in France, and some 1,790 R&D jobs were created in France through US FDI last year. Companies choosing to locate R&D projects in France may benefit from tax credits of up to $10 million per company per year, in addition to tax relief and exemptions from social security if they meet certain criteria.

logistics

France lies at the hub of Western Europe, with an excellent road, rail and air infrastructure offering rapid access to the Mediterranean and north west regions of Europe. The prime location has attracted some major investments in the sector – notably FedEx, which has now located its largest non-US hub in the Roissy-Charles de Gaulle airport in Paris. In March 2007, Hyundai opened a logistics center in Sete: the latest in a series of FDI investors to make the most of the advantages of location, workforce and infrastructure that France has to offer.

Business support

France is a popular location for companies looking to set up business service and support centers, and this was one of the most active FDI sectors during 2006, with some 5,200 new jobs created through US investment alone. This is predicted to be one of the biggest growth areas over the next few years.

AMCHAm france

Amcham France aims to support its members by providing extensive local knowledge resulting from a century of first-hand experience, and the support of the 100-member worldwide AmCham network. Through the network, Amcham France identifies positions common to US investors in France, and highlights these concerns to key opinion and decision makers in the French government and the media. A range of networking and education opportunities offer further support for member companies looking to develop their business objectives in this exciting and attractive marketplace.

 

Contact Information

American Chamber of Commerce in France
156 Boulevard Haussmann
75008 Paris
France
Tel: +33 1 5643 4567
E-mail: amchamfrance@amchamfrance.org
Website: www.amchamfrance.org

 

Useful websites

www.amb-usa.fr	US Embassy in France
www.insee.fr/en	National Institute of Statistics
www.apce.com	Business Start-up Agency
www.investinfrance.org	Investment Promotion Agency
www.travail.gouv.fr	Ministry of employment
www.pricoarelocation.com	Private company offering relocation advice
www.franceguide.com	Tourism and travel

 

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