(Last updated: 16 May 2012)
Doing business
Business opportunities
Austrade’s business development specialists have prepared a range of market profiles that offer potential to assist in your exporting investigations. Austrade’s in-market teams have identified opportunities for Australian exporters in various industries (see 'Profiled industries in this market' on the right side of this page).
Business culture
Business practices
- The most important characteristics of French business behaviour are its emphasis on courtesy, and a certain formality.
- French companies are interested in long-term partnerships. Therefore, once business partnerships are established they need to be maintained with regular visits to France that will ensure continued collaboration.
- Although many business people in France speak English, a considerable advantage can be gained if one can communicate in French during business dealings.
- Ensure that the person you are dealing with is a confident English speaker or have a translator on hand. The French are formal in their business dealings and generally are not receptive to a hard-sell approach.
- Titles (Dr, Professor, etc.) should be used both in correspondence and in face-to-face meetings – business contacts are not normally addressed on a first name basis.
- A handshake and a greeting are customary when meeting contacts, or entering and leaving a meeting.
- Contracts should be coherent, thorough, and where possible, brief.
- Do not schedule business meetings in August (summer vacation) or workdays adjacent to public holidays.
- Respecting appointment times is important, along with prompt correspondence whether by mail or fax.
- Not surprisingly, in a country renowned for its fashion industry, style of dress is very important in the business world. For men, office and corporate wear is formal consisting of suit and tie. Alternatively, fashionable semi-conservative wear is considered appropriate for women.
- Times are often referred to using the 24-hour clock, e.g. 6:00pm is 18.00 hours.
- Lunch is an integral part of the day and business discussions during a meal are common.
Setting up in France
Setting up an overseas office can be expensive and usually, but not always, follows an initial market entry, working through agents or distributors. The benefits to Australian business people of setting up offices overseas can be significant.
You need to think about:
- The office location – convenience to customers, security and social attitude towards the integrity of the neighbourhood
- Costs per metre to rent or lease
- Utilities – eg. availability of water, power, electricity, telephone, fax and Internet connections
- General building access –eg. user-friendliness of reception area and disabled access
- Parking for visitors and tenants
- Amenities – eg. meeting room, tearoom, toilets
- The lease agreement exit clause – consult a lawyer who specialises in property agreements
- Value of using property consultants (recommended)
To register a company you must supply the following in French:
- Copy of the authorisation of the Board of Directors
- Notice of the appointment of your representative in France
- Personal documents of your representative (passport)
- Company articles and by-laws
- Lease or contract relating to your premises in France
On an average basis, office rent is more expensive in France than in Australia and short-term leases tend to be rare and difficult to find. Serviced offices might offer temporary alternatives and numerous companies offer this service in large French cities, including the Australian company Servcorp or the French company Axinnov. On large-scale investment projects, Invest in France, the French government investment promotion agency, is able through its domestic network to assist in finding business accommodation and industrial sites.
Austrade offices overseas can assist companies wanting to set up representative offices by:
- Providing advice based on their previous experience in helping Australian companies
- Recommending experienced legal and taxation experts
- Finding suitable property consultants
- Connecting you to other companies who have already gone down this path and who will know of pitfalls and short-cuts
- Introducing you to major accounting firms which will know the practical steps in setting up offices
Banking and finance
Banking activities form an integral part of the French economy, with six main banking groups managing over 80 per cent of the 72 million accounts throughout the country. France has one of the highest bank penetration rates in the world at 99 per cent. As a Member State of the European Union, the Euro is used in France as the prescribed currency.
The French foreign exchange market is a vital segment of the national economy. It represents a substantial segment of the European foreign exchange market due to the high liquidity of the Euro and its global acceptance.
In 2000, the stock markets of Paris, Amsterdam, Lisbon and Brussels merged into the Euronext system (London also opened a market in 2010). In 2007, NYSE Group and Euronext NV came together to form NYSE Euronext, emerging as the world’s largest exchange group by number of listings and market capitalisation.
Over-the-counter market: the 'Marché Libre', created in 1996, is now organised (but not regulated) by Euronext. It is used by French and foreign small and medium-sized enterprises wishing to be present on the stock market without complying with the entrance criteria of the other Euronext markets.
The insurance sector has experienced decelerated growth since 2006, but is expected to climb steadily again from 2010. Life insurance sales have proven the most lucrative in the French market, generating over 67.6 per cent of the market’s overall value in 2008. Insurance companies with headquarters located outside the European Economic Area (EEA) are supervised by the French Ministry of Economy and Finances (Insurance control commission). To be authorised to offer contracts to French residents, they have to establish a subsidiary, after obtaining an administrative agreement in compliance with the French Code of Insurance.
Asset management growth is expected to accelerate over the next five years, despite a decline in 2009. The deposit’s segment is the market’s most lucrative, with a value equivalent to 69.2 per cent of the market’s overall value. As a Member State of the European Union, France has to comply with European directives.
Useful websites and resources
Government, business and trade
Afnor – www.afnor.org
Axinnov – www.axinnov.com
European Union Customs – http://ec.europa.eu/taxation_customs/customs/index_en.htm
French Economy, Finance and Industry Ministry – www.minefe.gouv.fr
French customs – www.douane.gouv.fr
French Foreign Trade Ministry – www.exporter.gouv.fr
The Internationalist – www.internationalist.com/SERVICE/BANKS/France.html
Virtual office in Australia: Servcorp – www.servcorp.com.au
Information on French businesses – Verif – www.verif.fr/home.html
News and media
International English language newspapers and magazines are available from newsstands, ‘kiosk à journaux’, at major airports, railways stations, and on the Champs Elysées as well as at WH Smith bookshop, 248 Rue de Rivoli, 1st, or the Drugstore, 133, avenue des Champs Elysées, 8th arrondissement, which is open until 2.00am. For local news, you will find a large range of French national newspapers including:
Le Figaro – www.lefigaro.fr/international/
Le Monde – mondediplo.com
Le Monde – www.lemonde.fr
Parisien – www.leparisien.fr
Libération – www.liberation.fr
Major cable and satellite stations, including CNN and BBC, are available in most hotels. The French news channel is LCI. Agence France Presse has local and international news.
Please note: this list of websites and resources is not definitive. Inclusion in this list does not imply endorsement by Austrade. The information provided is a guide only.