10 STAGESTO SETTING UP

A COMPANYIN FRANCE

In France, 2009: 580 193 new companies (+ 75 % / 2008)

Growth + 54% / 2000

Myth: assault course

3 / 5 new entrepreneurs do not exceed the fifth year

80% of creators fail: light maket study

To succeed strong preparation

Key Figures

Monthly information meetings

Training course " 5 days to Undertake " a training course every

3 months

Advises personalized by appointment for advanced projects

Service Economic Information

Consular file

CFE: Center where companies register

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The Chamber of commerce’s accompaniment

10 - STARTING UP

9 - Formalities

8 - Training

7 – Aids & subsidiaries

6 - Tax system / social welfare

5 - Legal forms

4 - Financing

3 - Commercial lease

2 - Market study

1 - Regulation of the activity

An idea a project...

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10 stages

Is the name still used by another company?

Local protection: sales name or business name

National or international protection: Brand

Stake: - need to change the name

- damages

- penalties

Non automatic search: ask National Institute of the industrial property: www.inpi.fr

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Stage 1: choose the name of the company

Professional capacity, financial guarantee...

Transport

Real estate

Drinks – restaurants

Human services (agreement)

Shows

“Déclaration préalable” to do

Second hand trade, antiques

Licence to obtain

Tobacconist

Alcoholic drinks – bar owner

Import-export

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Stage 1: Regulated activities

Your project should be...

• Realistic

• Profitable

• Persuasive

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Stage2 : market study

Why a market study?

If creating:

1 – Clients2 – Turnover3 – Range of Products / services4 – Price5 – How

If acquiring:

Existing market share

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Market study

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Market study

Customer catchment area

Definition:Geographic area containing most of customers.This area allows to calculate the sales potential.

External observation

Consuming behaviour habitsof potential clients

Environment analysis

• Population (demographic)

• Type of housing environment

• Road sideboard

• Employment

• Tourist impact

• Seasonality

• Unemployment

• Dominant activities

• Projects of arrangement and local development

• Social, cultural, sports actions

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Market study

Where to find information?

• The CCI

• The Prefecture, the City hall

• The Tax office

• The tourist information office

• The bodies of local development

• Experts, the approved centers of management

• The regional daily press

• The professional reviews

• Trade shows

• INSEE (NATIONAL INSTITUTE FOR STATISTICS AND

ECONOMIC STUDIES)

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Market study

Competitors

Identification

Analysis

Information: CCI (consular file...)

Choose the best location

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Market study

Definition: Contract by which an owner rents to a third party

an immovable property allocated to a commercial activity.

Read the contract before signing it

You can’t go back!

Negotiable contract

Careful: if purchasing a goodwill or a right to

lease, it’s non negotiable

Activity: "any businesses“ or limited to a precise activity

Term: minimum 9 years

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Stage 3: Commercial lease

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Stage 4: Initial Financial plan

Cash (initial)

Inventory

Investment

Loan

Capital invested

Expenses = Revenue

Should be balanced

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Financing

Purchase or rent?

Wall

Goodwill

Materials

Machines

car

Office

Layout

etc...

How do you pay ?

Own money

Loan

1. Investments

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Financing

Supplier creditClient credit

2. Inventory

FinancingPersonal investment

BankingSupplier credit

How muchHow long

3. Liquidity

How muchHow long

FinancingPersonal investment

BankingSupplier credit

Projected Income Statement

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Financing

Projected Turnover

- Less purchase

- Less expenses

- Less taxes

- Less wages (personal charges)

- Less financial expenses

Profit or Loss

+ --------

- --------

- --------

- --------

- --------

- --------

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BREAK EVEN

Sole proprietorship or Limited Liability

Company

SARL, EURL, SAS, SA, SNC

Do you accept to share:

- power

- profit

With one or several persons

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Stage 5: Legal form

No perfect legal form

The choice depends on the owner

If necessary, possible to change the legal form during the

life of the company

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Legal form

France: taxation system

Depending on the legal form different tax

system for the company. (Tax on revenue,

etc...): IR, IS

And:

Tax on Value added

Tax on the territory (Business Tax)

Tax on car...

Different rates

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Stage 6: Taxation

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Stage 7: social Protection

1st year: approximately 3 200 Euro

2nd year: approximately 4 800 Euro

3rd year: adjustment according to the declared income

Careful the third year (liquidity)

From State

ACCRE (unemployed, Rmistes …)

Fiscal (geographic areas)

Private grants

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Stage 8: Grants

To develop new skills:

in accounting,

in selling

...

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Stage 9: Training

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Stage10: Formalities

Your company needs to “exist”

Centre de Formalités des Entreprises

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To conclude ...

• Take your time

• Question yourself

• Ask help