Resign a commercial contract with a French operator ? Don’t do it suddenly !
The « established » relationship (“relations établies”) refers to a business connection or partnership that is characterized by regular and consistent commercial dealings, rather than being a series of isolated transactions. Besides its duration, other factors play a crucial role in defining an established relationship. According to the French Supreme Court (« Cour de cassation »), a commercial relationship qualifies as established when there is a stable and steady exchange of business, and the aggrieved party had reasonable expectations for the continuity of the business association. Several indicators are considered to assess these expectations, including the investments made by the aggrieved party, exclusivity arrangements,
What you need to know about an acquisition audit in France?
If you are planning to take over a business while limiting the risks, it is essential to carry out an acquisition audit (also known as due diligence). This enables you to check the information provided by the seller and ensure that the sale price is not overestimated. Depending on the project, the size of the target company and its sector of activity, different types of audit may be required, such as accounting and financial, tax, corporate, legal, contractual, organisational, etc. audits. What are the issues involved in an acquisition audit? The acquisition audit is a crucial stage in the process
Shareholders’ agreement in a French company
What are the advantages of concluding a shareholders’ agreement? A shareholders’ agreement, also known as a “pacte d’actionnaires”, is an agreement between two or more partners in a company (SAS, SA, SARL or other form of company) that governs their relationship outside the Articles of Association. The objectives and content of the agreement may vary depending on the specific needs of the partners and the nature of their cooperation. The explanations given here are intended to provide a general overview of the advantages of such an agreement. Partners’ agreements can be beneficial for the following reasons: What does a shareholders’
E-commerce in France
France holds a strong position in the European e-commerce industry, being one of the top three players. This article presents crucial information for those aiming to penetrate the French market with their online businesses. Customers in France not only engage in domestic online purchases but also exhibit an increasing inclination towards shopping from international online vendors. Additionally, mobile commerce or online shopping through mobile devices is a growing trend in France. Thus, it’s imperative to adapt your online store to be mobile-friendly to serve this increasing demand. Product Compliance: For marketing products in France, adherence to EU regulations is a
How to handle debt recovery in France
Ensuring a successful recovery of outstanding financial obligations from debtors within the jurisdictions of France and Europe typically necessitates the strategic input of a seasoned professional, capable of offering both non-contentious and contentious strategies. In the realm of non-contentious solutions, a specialist in the field is well-equipped to provide a swift and efficient response, often beginning with the dispatch of a strongly-worded formal notice to the debtor who is resisting payment. This individual can also participate actively in negotiation proceedings, and if the circumstances so demand, broker a mutually agreeable settlement arrangement that facilitates debt clearance. Should these non-contentious attempts
What is the so called “management package” and how it works?
A management package, also known as a « ManPack », is an essential tool for motivating, sharing value creation and retaining key managers in mid-sized companies (MSEs) and small and medium-sized enterprises (SMEs). This tool aims to involve key managers and employees in the company’s growth by aligning the interests of shareholders, managers and key employees. It is widely used by investment funds to redistribute part of the value created (i.e. a portion of future profits). The management package offers beneficiaries the opportunity to share in future earnings and, more importantly, to have access to the company’s capital. However, the valuation and
How to close down a business/company ?
Closing a sole proprietorship? There are two main stages involved in winding up a sole trader’s business: a declaration of cessation of activity, followed by a tax declaration. Declaring that your sole proprietorship has ceased trading First, to wind up your business, you need to complete the cessation of activity form and relevant documents and provide the Trade and commercial register with it. This procedure must be completed no later than 30 days after the effective date of cessation of your activity. Declaring the closure of your sole proprietorship for tax purposes The second step is to declare the closure
How to proceed to a fund-raising in France ?
What’s the interest of fund raising? Fundraising is a process whereby a company increases its capital by receiving financial contributions from investors. In return, these investors receive shares of the company, depending on the type of company involved. The main aim of this operation is to get new money for the structure and acquire new capital partners to stimulate the company’s growth. What types of company can benefit from a fund raising? For a start-up, the main challenge is to define its needs precisely and align them with its growth potential. It is crucial to raise sufficient funds to enable
Which structure to start a business in France?
Alongside tax and social security applicable schemes and options to make regarding the business you are about to launch, choosing the tailored structure for the activity you plan to develop in France is a key point to ensure and secure your businesses interests and liability. The simpler and most chosen structure is the sole proprietorship (EI), as regard notably to its flexibility. This category includes the micro-enterprise scheme. It is managed exclusively by a natural person, the sole trader, who has full powers to act. Since May 15th, 2022, the sole trader’s liability has been limited to the assets needed