Selling on - France

Updated 07/2009

• European Union
• Austriadeen
• Belgiumenfrnl
• Bulgariabgen
• Cypruselen
• Czech Republiccsen
• Denmarkdaen
• Estoniaenet
• Finlandenfi
• Franceenfr
• Germanydeen
• Greeceelen
• Hungaryenhu
• Irelanden
• Italyenit
• Latviaenlv
• Lithuaniaenlt
• Luxembourgenfr
• Maltaen
• Netherlandsennl
• Norwayenno
• Polandenpl
• Portugalenpt
• Romaniaenro
• Slovakiaensk
• Sloveniaensl
• Spainenes
• Swedenensv
• United Kingdomen

Legal requirements

France's commercial code governs business transfers.

• Commercial code

Types of business transfer

Business transfers may involve either gifts or sales:

• free transfers   (e.g. gift between spouses, simple gift, settlements gift and gift to employees);                
• paid transfers   (e.g. business sale, transfer of shares, transfers of lease rights, lease management).
• Different types of transfer

Business transfers: a step-by-step guide

Parties must negotiate and draw up a memorandum of understanding formalising arrangements between seller and purchaser. A transfer deed is also produced to establish the terms of the sale.

• Memorandum of understanding
• Transfer deed

Support

             Support   in France for business sales includes:

• business tax exemption;    
• exemption from change-of-ownership levies if gifting a business to employees;     
• tutelage agreement between the seller wishing to retire and the new owner;    
• business transfer allowance for signatories of a tutelage agreement;    
• allowances for gift and settlement duties.    
• National support available for business transfers

Taking over an existing company is a worthwhile alternative to setting up a new business.

• Takeovers — France

Administrative procedures

Business transfer procedures

Steps to follow when transferring a business:

• removal from the trade and company register or the trade directory within 15 days of the transfer;
• cancellation of subscriptions, insurance, etc.;        
• publication of a legal notice in the event of a sale.
• List of published legal announcements

Businesses also have tax            obligations:

• VAT and tax returns (VAT within 30 days; tax and annexes within 60 days)  
• Declaration of activity / cessation of activity [232 KB]
• Declaration of business profit/loss
• Annual wages declaration within 10 days of any transfer

Resources

The business transfer portal database lists opportunities for business takeovers and methods for evaluating your business.

• Takeover opportunities
• Evaluating your business online

Check also the legislation on this topic in:

• European Union
• Austriadeen
• Belgiumenfrnl
• Bulgariabgen
• Cypruselen
• Czech Republiccsen
• Denmarkdaen
• Estoniaenet
• Finlandenfi
• Franceenfr
• Germanydeen
• Greeceelen
• Hungaryenhu
• Irelanden
• Italyenit
• Latviaenlv
• Lithuaniaenlt
• Luxembourgenfr
• Maltaen
• Netherlandsennl
• Norwayenno
• Polandenpl
• Portugalenpt
• Romaniaenro
• Slovakiaensk
• Sloveniaensl
• Spainenes
• Swedenensv
• United Kingdomen