Transcript - Group of Technology Companies
Invest in France
“FRANCE, EXPECT MORE”
Audrey LUCBERNET, Inward Investment Officer August 2011
WHO WE ARE?
• Public entity under the supervision of the French government • We help Indian companies in identifying the best investment opportunities in France (from setting-up an office to greenfield projects and M&A) • Coordination with the regional authorities of France in order to follow the different steps of your project: finding a location, proposals of real estates, benchmark of cost of setting-up, administrative procedures, recruitment, staff expatriation, public funding, informations on tax and labour law in France, . .
.
Our services are free of cost & confidential
2
WHERE WE ARE?
3
- Number 1 in Europe in term of amount of FDIs - Number 2 in Europe in term of number of projects
ALLOCATION OF FDIs IN EUROPE
2
ALLOCATION OF FDIs IN FRANCE PER ORIGIN & PER INDUSTRY
2
INDIAN INVESTMENTS IN FRANCE
-
100 Indian companies
in France - hiring
7000 employees - 60 000 Indian citizens
living in France
France welcomes Indian Investments
France welcomes Indian Investments
17 8 8 33 33 Production & manufacture Business to Business Services Decision making centers R&D, engineering & design Business to Consumer services
What are their & yours benefits in France?
2
• The
2nd largest economy in Europe
with access to
500 million consumers
• The
Gateway
to your business in
Europe, Africa & French speaking countries THE MARKET
2
THE FRENCH SPEAKING MARKET
France gives you access to more than
40 French speaking countries
… thats is to say more than
200 millions French speaking persons for which French is the native and administrative langage
France gives you also access to the Schengen Area
Schengen Area
= 25 member States • Including Switzerland since December 2008 • UK and Ireland are not member States
THE MARKET Food industry: 1st rank in Europe Life sciences: 1st rank in Europe Aerospace: 1st rank in Europe Chemical industry: 2nd Rank in Europe Automotive industry: 2nd rank in Europe IT: 3rd rank in Europe
2
IT Market in France, Key figures
- Turnover: 112 billion euros
telecommunications ( €55.7 billion), IT (€13.4 billion) and electronic goods (€8.4billion)
- Represents 16% of the European market - Represent a workforce of 1 335 000 employees - Important French leaders in IT
:
Dassault Systems Alcatel-Lucent
(software development) (telecoms and network equipment manufacturer),
France Telecom
(telecommunications),
Gemalto
(world leader in the production and marketing of smart cards),
Cap Gemini and Atos Origin
(IT consulting).
Vivendi
(communication and entertainment),
- Presence of international companies
: engine "Live Search“ in Paris ;
Microsoft Huawei Technologies
set up an R&D center dedicated to the search Co. Chinese telecoms supplier set-up a training center, including laboratories and classrooms & 2 R&D centers ; British firm
Cambridge Silicon Radio
SARL
extended its R&D center in 2010 dedicated to wireless communications. It is located in the Provence-Alpes Côte d’Azur region.
IT Clusters, source for research & partnership opportunities Media & network Secure electronic transaction s Cap digital System @atic Lasers Elopsys Aerospace valley Imaginove Minalogic Complex optical & Imaging system Secure communic ation solutions
IT Clusters specifics
MINALOGIC
in Rhône-Alpes, which fosters innovation in the development and production of intelligent miniaturized products and services for industry (micro-nanotechnologies and embedded software intelligence).
www.minalogic.org
SCS (Secure Communication Solutions)
in Provence-Alpes Côte d'Azur, which focuses on the design and development of new solutions - integrating components, software, networks and systems - for safe and reliable data exchange and processing. www.pole-scs.org
SYSTEM@TIC
in Ile-de-France, which specializes in ICT and encompasses complex systems and generic software, electronics and optoelectronics technologies. www.systematic-paris-region.org
Images et réseaux (Media and Networks)
in Bretagne (Brittany) and Pays-de-la-Loire. This cluster specializes in communication networks and new digital image technologies.
www.images-et reseaux.com
IT Clusters specifics
Cap Digital
in Ile-de-France, which specializes in the creation, distribution and multimedia exchange of digital content. www.capdigital.com
TES (Secure Electronic Transactions)
in Basse-Normandie, which focuses on secure data exchange, digital identity and financial transactions. www.pole-tes.com
Imaginove
, in the Rhône-Alpes region, which aims to develop synergies between the different branches of the moving image sector (video games, cinema, audiovisual, animation and multimedia). www.imaginove.fr
Aerospace Valley
, in the Midi-Pyrenees & Aquitaine regions is the leading cluster in the field of aeronautics, space and embedded systems, with over 1,600 firms, 8,500 researchers and 1/3 of France’s workforce in aeronautics. Among its research programs, the cluster hosts a top-of-the-line research center in navigation, positioning and telecommunications http://www.aerospace-valley.com/
As a matter of fact …
- Opportunities for organic growth:
To be close to your prospects or existing clients & to create more confidence towards them To organise the administrative and visa procedures on your own
- Opportunities for inorganic growth:
Availability of companies which are under chapter 11 or whose CMD is going for retirement Ready made solution & access to technologies & skilled workforce
- Opportunities linked with the language
Access to France & French speaking countries / clients Front operations in France, back up office in Africa
- Opportunities in R&D:
Partnership in the clusters R&D tax credit which cut down your expenditures by 40% the first year
- As a result, 50% of the Indian companies based in France are from IT -
COMPETITIVE COSTS OF SETTING-UP Index of total business costs (Overall results US=100.0) The cost of doing business in France is competitive
(costs inclusive labour, facilities costs, transportation, utilities and taxes)
Source: Competitive Alternatives: KPMG’s Guide to International Business Location - KPMG 2010
2
DISCOUNTED OFFICE SPACES AVAILABLE
20
REGISTRATION PROCEDURES
Source: World Bank Group
INDIA & FRANCE: STRONG STRATEGIC PARTNERS
2 •
Nuclear agreement in Oct 2008
•
Social security agreement ratified beginning 2011
•
Trade increase by more than 20% a year
•
Trade between India and France
•
Global trade of 9 billion USD
•
700 set-up in India, 180 000 employees
•
100 set-up of Indian companies in France, 7 000 employees
LATEST FUNDAMENTAL REFORMS OF ATTRACTIVENESS
2
LATEST FUNDAMENTAL REFORMS OF ATTRACTIVENESS
In order to bolster the attractiveness of France, the French gouvernment under the governance of President Sarkozy, has implemented more than 50 reforms
1/ More flexibility in the labour market 2/ More welcoming incentives 3/ A better business mobility
1/ More flexibility in the labour market
Increase the working time
The working time is negotiated in each company.
Maximum of 48 hours a week (according to European rules).
Employers benefit from exemptions from tax and social security contributions for overtime hours
Employees have an increment of 25% of their salary for overtime hours
2
2
1/ More flexibility in the labour market
Period trial increased by 2 months - Employers can increase the trial period for blue collars and employees to 4 months
-
Employers can increase the trial period for management staff to 8 months
Termination by mutual consent Inspired by the USA and UK agreement, termination by mutual consent between the employee and the employer
3. for foreign companies
2/ More welcoming incentives
France offers the best research tax credit
in Europe:
This bonus provides a research tax credit rate of 40% the first year, 35% the second year, and 30% the third year & consecutive years
Example how to calculate the R&D tax credit
2/ More welcoming incentives
28
2
New 2/ More welcoming incentives A new financial incentive to support investment projects What is it?
a 0% interest rate loan \
Who can benefit?
Companies < 5000 employees investing 5 million euros & create / safeguard 25 jobs
How much?
The 0% interest rate loan will cover up to 40% of your investment
3/ Business mobility NEW 2 new visa sections New Delhi Mumba i Bangalore Pondicherry Kolkata
3/ Business mobility A welcoming business environment for foreign managers General Manager
(CEO, CFO,… in charge of the Fench subsidiary)
Employees Intra Group Mobility « The Skills and Expertise permit »
3-year work & residence permit Renewable Permission granted to spouses to be employed in France
Temporary Residency Permit «expatriated salaried employee»
3-year work & residence permit Assignment or expatriated Permission granted to spouses to be employed in France
3/ Business mobility 10 years residence permit for exceptional economic contributions Your investment must meet one of the following thresholds
• A business plan which creates or saves 50 jobs, or • Investment of €10 million in tangible or intangible assets
NEW
2
3/ Business mobility A new Social security treaty between India and France
What is it?
Indian workers being assigned to France will be exempted from contributions to the retirement funds
What is your benefit?
25% reduction of the quarterly contribution to be paid
NEW
Thanks for your attention & Bonne chance!
Invest in France Agency
Embassy of France in India 2/50E Shantipath, Chanakyapuri 110 021 New Delhi [email protected]
Tel.: + 91 11 43 19 63 30
www.investinfrance.org