What is the attractiveness of France for foreign companies after the recent law reforms?

France is the seventh most attractive destination in the world for foreign investors, according to the AT Kearney classification (FDI Confidence Index[1]). It gained 10 grades compared to the 2012 ranking. This rise has taken place partly due to the recent reforms undertaken in the fields of labor and contract law. First of all, foreign investors will be concerned by the changes brought by the reform of the French Labor Code. In general terms, the... Read More

Foreign Investment in China switching to Record-filing System

Foreign Investment in China switching to Record-filing System By Li CHEN for Lex-in-it On 30 July 2017, the Ministry of Commerce (“MOFCOM”) issued two documents relating to foreign investment in China: the Decision on Revising the Interim Administrative Measures for the Record-filing of the Incorporation and Change of Foreign-invested Enterprises and the 2017 No. 37 Announcement on Matters Related to the Administration of the Record-filing of the Incorporation and Change of Foreign-invested Enterprises (“the Announcement”).... Read More

The European Union’s Free Trade Agreements concluded with Korea, Canada and USA

Overview and Prospect of the European Union’s Free Trade Agreements concluded with Korea, Canada and USA The Free Trade Agreements (‘FTAs’) recently concluded between the European Union (EU) with Korea, Canada and the United States of America illustrate a major evolution in the role that these Agreements could play in a globalised economy. States want to abolish tariff barriers while protecting their economy. Non-tariff barriers (NTB) and the Investor-State Dispute Settlement Tribunal are key legal... Read More

Company failures, settlement periods and the financial crisis: the terrible trio

If you have begun this new year full of hope and motivation for the creation, development or taking over of a business in France, we strongly advise you not to read the report published by Altarès  on company failures in 2011, despite the fact that it is extremely comprehensive and insightful. Before telling you what you could learn from reading this report, it is important to note what is meant here by corporate ‘failure’ (défaillance). ... Read More

France, dreamland for investors ?

It will not hurt to begin with some statistics concerning France to demonstrate the effect, actual or assumed, of its allure to foreign countries: Fifth strongest economy worldwide and 2nd largest economy in Europe (according to IFA) Number one tourist destination worldwide Fourth host of FDI (Foreign Direct Investment) $34 billion of foreign investment flows inFrance, equivalent to the capital of the famous American university, Harvard More than 20,000 foreign companies inFrance(out of a 3.4... Read More

Companies, meet the bicultural lawyers

On November 28th, the group of multiculural lawyers Lex in IT held its launch event in Lyon (France), targeted at foreign companies that have chosen to expand in Europe and wish to discuss the matter with international lawyers from multiple jurisdictions. This launch event was an excellent opportunity for those companies to meet a group of ten bicultural/multilingual lawyers with stupendous experience of practice in different jurisdictions, including France and their native country. Each of... Read More

Sudden breach of established business relationships

The rupturing party risks sanctions even when the victim opposes it Breaking an established commercial relation is not without perils. But some responses allow light to be shed on the matter. What is an “established” relation? The first reflex, although deceptive, is to assess the “established” business relationship in terms of its duration. Other criteria should equally be considered. It is also necessary that there is a regular deal flow, that there is no succession... Read More

Severance allowance of commercial agents in Spain.

Regulated by Directive 86/653/CCE , transposed by Spanish Law 12/1992 of May 27th. of commercials agents. The contracts rules would be freely chosen by the parties, unless mandatory standards or police laws (if all elements of a contract are in a country, the contract cannot be submitted to the law of another country). In this regard, article 3.1 of the Rome Convention and the same article of the Rome Regulation, and the Judgment of the... Read More

France – Germany: Part 2

Regarding commercial matters, competition law in France seems original to our European neighbors in that it often goes further than European necessity; not to mention that it is also extremely protective of our SMEs when faced with the overkill of other major economic participants. Supervised annual commercial negotiations, the necessarily communicated general conditions of sales, the shortened payment deadline, the non-brutal breakdown of the commercial relations…. These large French players know the severe limits of... Read More

France – Germany: brothers, cousins or enemies?

Last June, we were pleasantly surprised to come across one of our quotes in the newspaper, L’Enterprise:  “Stop comparing ourselves to Germany.  Do things our own way.”  This citation, quoted from our blog and featured in a monthly business journal of several thousand copies, demonstrates the interest, tainted with jealousy and a hint of annoyance that German enterprises (acknowledged by all governments as good models) have for French companies. To the same extent, the same... Read More

Is France still attractive for foreign investments?

In the last post we asked ourselves about the subject ofFrance’s competitiveness as well as its ability to attract foreign investments. The highly anticipated annual results of the International Institute for Management and Development (IMD) at the international level are relentless:  in terms of attractiveness, France is ranked 29th of 60 countries.  Even more interesting than this seemingly high number is noting that France is still descending this scale in terms of international attractiveness: –        ... Read More

Culture of export in France (2) ?

Traditionally, international commerce, settlements of subsidiaries abroad, joint ventures (“JV”), and mergers and acquisitions (“M&A”) are seen as opportunities only available to large companies.  All of these English originating terms have the tendency to scare modest and humble SME French managers to who the aspect of “international” seems unattainable. And yet, the barometer created by CGPME[1] brings back the interest and motivation of French SMEs to advance their international involvement.  Despite the crisis, French companies... Read More

Culture of export in France (1) ?

France is well known for the pride it takes in its culture; this is evident due to its adoption of cultural exception. This principle of international law allows us to set limits on free trade in cultural matters in international treaties. National interest in our culture is beyond doubt due to the recent success of the movie “Intouchables”.  Its producers can boast a box-office success with over 19 million admissions sold in France.  Meanwhile, the... Read More

“Social VAT”, a well-worn topic “a la française”?

Could our sacrosanct value added tax or VAT be France’s best invention or at least the one that the world has copied the most?  This direct tax on consumption was inaugurated in France in 1954 at the instigation of a high-ranking civil servant namds Maurice Lauré.  Seen as a modern tax, as it only impacts the added value upon the sale of goods, VA was quickly successful throughout the world and in particular in Europe. As of... Read More

Increase in the number of new companies in France and the financial crisis

According to the French observatory on company formation, 412,814 companies were formed between January and September 2011, which is lower (-12.8%) than the number recorded during the first nine months of 2010.  Nevertheless, the level of company formations remains high – on a par with that of 2009[1]. What, then, is the explanation for this surprisingly creative energy during a period of European financial crisis, at a time whenFrance is on the verge of losing... Read More

About Lex in IT lawyers

Members of "Lex in IT" are a group of French and foreign lawyers, specializing in business law. Our freedom and independence are essential, since we believe that a reputable lawyer is primarily an independent person with a critical mind, especially in the country of Descartes[CD1] .  Each lawyer has unique skills, i.e. cultural, linguistic and legal skills, with regards to a foreign country due to his/her personal experiences abroad and Lexinit’s readers will benefit from this... Read More

Lex in IT: the reasoning behind the blog

Dear Readers, You are probably wondering why this new blog about the law in France?  Let us explain why we feel that this new blog is unique, unusual, original and has numerous other qualities that you will have the opportunity to discover along with our articles and opinion pieces.  In all modesty, it should answer all of those questions you have always wanted, but never dared (for fear of the dreaded solicitors’ hourly rates) to... Read More