Set up your business in Paris Region, why & how

Set up in the Paris Region, why and how?

A vibrant eco-region

PARIS REGION ECONOMIC DEVELOPMENT AGENCY – Ophélie L EFEBVRE – May 2010PARIS REGION ECONOMIC DEVELOPMENT AGENCY PARIS REGION ECONOMIC DEVELOPMENT AGENCY –– OphOph éélie LEFEBVRE lie LEFEBVRE –– May 2010May 2010 22

ARE YOU SEEKING A NEW BUSINESS LOCATION IN EUROPE?

Paris was the second destination after Tokyo Paris was the second destination after Tokyo for Headquarters in 2008. (Source: Fortune for Headquarters in 2008. (Source: Fortune ““ Global 500 companiesGlobal 500 companies ”” 2008)2008)

A A preconceivedpreconceived ideaidea : Paris : Paris isis lessless international international thanthan London & NewLondon & New --York?York?

• You expect access to the country’s major decision-m akers, whether in business, finance or government

• You want qualified local manpower , whether in management, sales and marketing, or in more specialized functions

• You need fast and efficient transportation , for people, products, by air, by rail or by road

• You require world-class professional services , from law and accounting partners to environmental technologies and services

• You seek a broad choice of sites

Paris Region Development Agency advises and assists foreign companies that seek to begin, expand or relocate business activities in the Paris Region.

Paris Region Development Agency offers free, active and confidential advisory services.

We can give you a tailored analysis of the region, its economic outlook and where your business fits in. We will accompany you through the entire process of setting up to opening day and beyond.

And give you answers on your preconceived idea !:And give you answers on your preconceived idea !:

Paris Region Development Agency is your guide to our r egion.

The average corporative The average corporative taxetaxe rate in France rate in France is one of the most competitive among the is one of the most competitive among the ““old member statesold member states”” ieie lower than Italy and lower than Italy and Germany.Germany.Source: Source: EurostatEurostat European Commission 2007European Commission 2007

Corporate taxes in France are the Corporate taxes in France are the highest in Europe?highest in Europe?


CHOOSE THE RIGHT REGION IN EUROPEWith the recent dedicated motorway line for Taxi, b oth Airports With the recent dedicated motorway line for Taxi, b oth Airports are are connected to the city center in only 30mn! connected to the city center in only 30mn! Paris Region offers one of the best transport netwo rk: 16 Metro Paris Region offers one of the best transport netwo rk: 16 Metro lines , 351 bus routes, 20 600 self service bicycle s 390 interrelines , 351 bus routes, 20 600 self service bicycle s 390 interre gional gional train with 5700 trains /day, 1 river shuttle..train with 5700 trains /day, 1 river shuttle..

Traffic in Paris Region is awful! Traffic in Paris Region is awful!

Located at the crossroads of European and global business, the Paris Region is France’s leadingeconomic region, and one of the most important in Europe.

Less than 3 hours away from the major Europeanbusiness centers, the Paris Region has a lot to offer.

Paris Region: your competitive edge

to & from London: more than 15 high speed trains & 20 direct flights daily

to & from Düsseldorf : 14 direct flights daily

to & from Copenhagen : 10 direct flights daily

to & from Madrid : More than 20 direct flights daily

With the recent dedicated motorway lane for With the recent dedicated motorway lane for taxis, both Airports are connected to the city taxis, both Airports are connected to the city center in only 30mn! center in only 30mn! Paris Region offers one of the best transport Paris Region offers one of the best transport networks: 16 Metro lines, 351 bus routes, networks: 16 Metro lines, 351 bus routes, 20,600 self service bicycles, 390 intraregional 20,600 self service bicycles, 390 intraregional trains with 5700 trains/day, 1 river shuttle..trains with 5700 trains/day, 1 river shuttle..

Traffic in the Paris Region is awful? Traffic in the Paris Region is awful?

CHOOSE THE RIGHT REGION IN EUROPE


The Paris Region: the Economic Capital of Europe

• 692,200 companies in 2008

• Education and Training : 17 universities, 350 higher education establishments, 600,000 students

• Research & Development: 3.1% GDP of Paris Region,14.5 billion €, 136 000 researchers and technicians

• Most competitive destination in Europe with the competitiveness clusters which receive support from the public authorities, giving its sector of excellence, high international visibility and legitimacy

• The Paris Region is a metropolis of 11.6 million inhabitants

• Paris Region is the 2nd place for world headquarters(HQ) of the 500 largest international companies in Europe and n°1 in the world just after Tokyo.

• Top Ranking European cities in terms of GDP 533,564 million in value (29% of the national GDP) / €45.98 per inhabitant

GLOBAL CENTER OF DECISION MAKING At the center of a market 395 million customers, Pa ris Region is the largest metropolitan region in the co ntinent

of Europe .

And more than 2,400 architecture practices

A DYNAMIC AND COMPETITIVE ENVIRONMENT !

Locate close to our key decision makers & meet your future clients



Competitivness Cluster in Paris Region giving your com pany the competitive edge


Scope- Construction- Infrastructures- Urban planning- Transportation

Key areas of focus- Urban planning and management- Mobility of people, goods and information- Homes and construction- Energy saving

Active members58 companies, 11 of which are among the world leaders 3 higher education and research centers

representing 150 labs and more than 3,000 searchers.

ObjectiveTo enable companies and organizations to collaborate on research and projects designed to develop products, processes and services thatcould be marketed in the medium term.

AdvanCity R&D competitiveness cluster

AdvanCity brings to close proximity approximatelyone hundred industrial, academic andinstitutional partners from the Ile-de-France region:about fifty companies (including ten leadingglobal corporations), twenty higher education andresearch establishments representing 133 laboratoriesand over 2,700 researchers and approximatelytwenty municipalities.

As a hub for expertise, a platform for innovationand a “factory” for collaborative projects, Advan-City contributes to the emergence of sustainablecities. More than 110 Innovative projects havebeen certified since 2005, representing a total inexcess of €150 million.www.advancity.eu

In addition the Paris Region hosts the new Seine Aval Greenbuilding Cluster:

200 projects analysed from 2005 to 2009145 projects qualified61 projects financed€122 M invested in innovation

www.advancity.eu


First steps in establishing the legal structure

Immediate market recognition.

High credibility towards Banks, clients, suppliers…

Eligible for local incentives

Easy to run!

Needs to be a separately registered legal entity. Subject to French corporation Tax.

Needs to be registered although it is not a separate legal entity.

Risk of being considered a fixed establishment by French Tax Authorities

Confidentiality of your French accounts.

Subject to French corporation Tax.

No legal entity

Not subject to French corporation tax. Office does not need to be registered unless > 1 person or has its own

premises

No legal entity,

Not subject to French corporation Tax.

Tax status and social security scheme

unattractive to local agents

No legal entity.

Not subject to French corporation

Tax.

Direct commercial presence in France

Direct Commercial presence France

Use of agents, System Integrators or distributors

Manage an Agent or System Integrator relationship from home country

Use of distributors managed from home country

Subsidiary in FranceBranch office in FranceRepresentative office in France

No office in FranceNo office in France

Choose a Legal Structure

The choice of a legal structure affects the statutory framework,tax obligations, interpretation of labor legislation, fundraising and many other aspects of running a business. The Options are:

-Societe à Responsabilité Limité: SARL-Société Anonyme: SA-Societe par Action Simplifiiée

No margin controlNo visibility of the market

High delivery rates and low logistical reactivity

Only one step awayfrom market recognition

CHOOSE YOUR LEGAL STRUCTURE


The easiness of creating a company in France detai led

The simple solution: SARL / EURLSociété à responsabilité limitée. The most widespread form of company in France . Simple to set up and run (no legal auditor mandatory). 1 or more managers; no minimum capital (€1). Between 1 and 100 partners/shareholdersEstimated cost to create an SARL: €630

The more sophisticated solution: SA Société AnonymeLegal auditor required; good for joint-ventures.. 1 Chairman & CEO or 1 Chairman and 1 CEO.. Minimum of 7 partners/shareholders.. Board of directors. Minimum capital: €37,000

The flexible solution: SAS / SASUSociété par Actions Simplifiées. Great operational flexibility. legal auditor no longer required. Each company makes its own statutory arrangements.. 1 Chairman, 1 or more partners.. Minimum capital: €1 from January 2009

First contact with the French market without commercial activity• Observation post for the parent company

• Maintain contact locally with clients and suppliers

• Company representative, with or without support team�� Declare your existence to the Company register

�� if its representative is not French he/she has to obtain a business resident permit & Commerçant étranger identity card

Representative office

First International sales operations in France

� Initial presence for international company undertaking commercial activities

� Operates as a branch office reporting to company head office

� No legal autonomy - operates on behalf of the parent company.

�� Declare your commercial activity to the Company register before starting

Branch office

Embedded in local industrial and commercial context• “Local” company under French law: can benefit from tax and social

exemptions like every French company

• Legally distinct from the parent company, but economically and financially dependent on it.

�� register the company with the Company register (“CFE”)

Subsidiary

@ World Bank 08

CHOOSE YOUR LEGAL STRUCTURE

It takes 7 days on average to set up a SARL with It takes 7 days on average to set up a SARL with less than 50 employees for a cost of mandatory less than 50 employees for a cost of mandatory formalities of about 350 Euros formalities of about 350 Euros 6 days in the US6 days in the US13 days in the UK & Ireland 13 days in the UK & Ireland 18 days in Germany18 days in Germany

Creating a company in France is a complicated Creating a company in France is a complicated and long process?and long process?


CHOOSE WHERE TO LOCATE YOUR BUSINESS : 3 ATTRACTIVE POSSIBILITIES1.Publicly Financed Real Estate Solution

Networking with other entrepreneurs

Assistance in obtaining funding

Business and technical assistance either onsite or through a community referral system

Business support services, such as telephone answering, bookkeeping, secretarial, fax and copy machine access, and meeting rooms

Flexible space and leases at very low rates

Dedicated public real-estate services to start-up f irms:

EXAMPLE OF “ACE INCUBATOR” SOLUTION: 22-23 quai du Président Carnot – 92210 Saint-CloudAccess: Metro Pont de Saint Cloud

A progressive rent to help you settle your business in Paris Region !

Monthly rent for an office for 2 people including: furniture, internet connection, phone line and daily cleaning

€600*

3rd to 6thmonths

First 3months

€700*

6 to 12months

€800*

12 to 18months

€900*

from the 19thmonth

€1000** Prices are excluding VAT

Find the incubator adapted to your project out of the 40 in the Paris Region!:

The Paris Region offers a solid network of some 40 “incubators” for new companies, covering the entire region. Incubators are special support structures that provide welcoming locations for the initial offices of newly created companies. Paris Region offers specialized and generalist incubators opened to international companiesAll application are upon conditions and previous agreement.


Looking for a flexible and immediate real estate so lution?

from €800/mthfrom €400/mthfrom €50/mth+ office on demand from €100/day

AIRPORTS

from €1500/mthfrom €500/mthfrom €50/mth+ office on demand from €100/day

SUBURB

from €2400/mthfrom €800/mthfrom €80/mth

+ office on demand from €130/dayLA

DEFENSE

from €1,500/mthfrom €500/mthfrom €50/mth

+ office on demand from €100/dayPARIS other

districts

from €2700/mthfrom €1200/mthfrom €99/mth

+ office on demand from €130/dayPARIS CBD

OFFICE FOR 3 WORKSTATIONS

OFFICE FOR 1 WORKSTATION

BUSINESS ADDRESS& Office or Meeting Room on

demand

* Workstation = desk + phone line+ internet connection

These prices are given as average prices and will depend on the chosen site, number of workstations, length of lease…We recommend you contact us directly in order to discuss your real estate project and we can inform you of special deals we have negotiated

Choose from the various Business centers in Paris Region, a fully equipped office for 1 day, 1 month, 1 year!The easiest way to start your business !

CHOOSE WHERE TO LOCATE YOUR BUSINESS

Business center density

Find flexible and costFind flexible and cost --effective real estate effective real estate solutions from 50solutions from 50 €€/mth/mth

Real Estate in Paris Region Real Estate in Paris Region is too expensive? is too expensive?

2. Business Centers


€ 160 / 500Paris others Districts

€ 90 / 450Paris Region 1st ring

Average office rental prices per sqm / per year

Paris Central Business District € 360 / 565

Paris region 2nd ring € 70 / 240

3. Attractive Rental costs of Traditional office an d warehouse space

Source: Immostat 1Q 2010

OPEN YOUR SHOWROOM IN A ENVIRONMENTAL & GREEN BUILD ING CLUSTER:

CHOOSE WHERE TO LOCATE YOUR BUSINESS

GREEN PARC SAINT PIERRE DU PERRAY

4400 sqm of activity and officesDivisible from 200 sqm

Offices & Warehouse:: from €85/sqm/year

Access: 30km from Paris Center By Road: Motorway A6Public transport: RER D

20 mn from Orly Airport40 mn from CDG Airport

Average warehouse rental prices per sqm/per year

€ 55 / 72€ 65/ 90 South

€ 50 / 65€ 65 / 110East

€ 60 / 90€ 85 / 125West

€ 60/ 90€ 70 / 110North

Not NewNewArea


The best labor availability and Quality

World Ranking Higher education institutions with links to research centers and the private sector:

A student region open to the world:

- 2nd highest concentration of higher education students in EU.- 588,700 students in higher education in 2008-2009- 999,200 students in secondary schools- 11 foreign national institutions- 22 multicultural schools- 17 universities and 53 Grandes Ecoles*- Foreign students account for 20% of the total student population in Paris Region Universities. - More than 70,000 apprentices across all educational levels are currently training in Paris Region businesses.

* The Grandes Ecoles are uniquely French institutions. They are extremely selective and offer education of a very high standard.

CHOOSE YOUR STAFF

PARIS REGIOINESSEC BUSINESS SCHOOLS

5

LYON CITYEM LYON6

GREAT LONDONLONDON SCHOOL OF ECONOMIC & POLITIC

4

PARIS REGIONESCP EUROPE3

PARIS REGIONHEC PARIS2

PARIS REGIONCEMS1

Recruit your engineers form the best ingenieer schools :

École des Ponts ParisTechA public scientific, cultural and professionalestablishment under the administrative supervisionof the Ministry of Ecology, Energy, SustainableDevelopment and Regional planning, the school has abase of more than 1,150 non-tenured lecturers to callupon from both academic and professional circles. Ithosts more than 1,500 student engineers, working formasters or doctoral degrees.It includes ten research laboratories with 220researchers and 250 PhD students (including somejointly with the LCPC, INRETS, university of Paris-EstMarne-la-Vallée) in the fields of environment, cities,mobility, urban economics, materials and appliedmathematics. www.enpc.fr

EAVT - École nationale supérieured’architecture, de la ville et des territoires(Higher national School of Architecture, ofthe City and Regions)Higher national school under the administrativesupervision of the Ministry of Culture andCommunication, it has a student body of 570, plus107 lecturers, provides training for the State diplomain architecture. The EAVT offers a joint degree inarchitecture and engineering in conjunction withthe Ecole des Ponts ParisTech, as well as a DSA specialist architect-town planning diploma and inservicetraining seminars. It has a research team “theobservatory of suburban conditions”.www.marnelavallee.archi.fr

Source: Financial Times 2010

The best labor quality and availabilityRecruit your Business developer from the best Business schools :


The French National Employment Agency at your service

POLE EMPLOI KEY FIGURES:

• top job website in France• 46,000 experts specialized by activity sector• 180,000 job offers daily• 22 million visits monthly in 2009• 504,000 corporate customers• 2,555,000 job advertisements collected

www.pole.emploi.fr

France ranks second among the OECD France ranks second among the OECD countries for hourly productivity per worker,countries for hourly productivity per worker,ahead of the United States ahead of the United States Average weekly hours for French executive isAverage weekly hours for French executive is48. 48. Source: Eurostat, SSource: Eurostat, S ééries EFT, 2008ries EFT, 2008

French are not productiveFrench are not productive

“Pole Emploi”, the national Employment Agency, offers customized and confidential services for your recruitment. The Pole Emploi provides high value-added public service, from writing the job description through to the recruitment process.The Paris Region Economic Development Agency has signed an agreement with Pole Emploi allowing international companies followed by the PREDA to benefit from their services for recruitment.

POLE EMPLOI FREE AND CONFIDENTIAL SERVICES:

1. Set up a meeting with Pôle Emploi in Paris Region. 2. Study with Pôle Emploi, the quality and availability

of labor in Paris-Region.3. Specify the profiles and wages of the staff you wish

to hire.4. Draft the job description and advertise it online.5. Receive and select cvs according to the job

description.6. Set up a recruitment session.7. Build your staff successfully

CHOOSE YOUR STAFF

France counts less strike days perFrance counts less strike days peremployee per year than the US & employee per year than the US & UK.UK.Source: IMD 2008Source: IMD 2008

French are often on strike ! French are often on strike !


CHOOSE YOUR STAFF

€ 55,000 – 75,000(15 years exp. & more)

€ 45,000 – 55,000(7 to 15 years exp.)

Engineer Energy Efficiency –Subsidiary

€ 55,000 – 75,000(15 years exp. & more)

€45,000 – 55,000(7 to 15 years exp.)

Engineer Energy Efficiency –Corporate / HQ

€56,000 – 78,000, 80% fixed(8 years exp. & more)

€44,000 – 56,000, 80% fixed(3 to 8 years exp.)

Sales Manager –Subsidiary

€46,000 – 61,000, 80% fixed(3 to 8 years exp.)

40 000 - 50 000 €(7 to 15 years exp.)

€45,000 – 55,000(7 to 15 years exp.)

Experience level 1

€50,000 – 60,000(15 years exp. & more)

Renewable energy project manager –Subsidiary

€ 61,000 – 86,000, 80% fixed(8 years exp. & more)

Sales Manager –Corporate / HQ

€55,000 – 70,000 (15 years exp. & more)

Renewable energy project manager –Corporate / HQ

Experience level 2

Attractive labour cost in the Renewable Energy Sector


LEASE / OFFICES 2 workstations in ACE INCUBATOR : € 8,700 Including desk + phone line+ internetconnection

UTILITIES / EQUIPMENTIT equipment (leasing over 3 years) : € 3,500

TRANSPORT1 car lease : € 4,2001 public transport (min. employer’s costs) : € 500 Total : € 4,700

BUSINESS ENVIRONMENTRegister a company (only the 1st year) : € 350Legal advice : € 2,500Insurance : € 2,000Accounting : € 2,500Total : € 7,350

LABOR / HUMAN RESOURCES- 1 Country Manager : € 70,000- 1 Junior Sales Manager : € 50,000- Charges (about 50%) : € 60,000Total Human Resources : €180,000

GLOBAL OPERATING COSTSTotal annual cost for a company of 2 people in Paris Region

ESTIMATED 1ST YEAR TOTAL COSTS (2 PEOPLE), IN €

Offices : 8,700Equipment : 3,500Transport : 4,700Business environment : 7,350Human Resources : 180,000Total : 204,250

WithWith an an investmentinvestmentof of €€200,000 the first 200,000 the first yearyear : :

•• EstablishEstablish a local a local presencepresence

•• BuildBuild a a trustabletrustable brandbrand

•• BenefitBenefit fromfrom a a dedicateddedicated teamteam

•• CoverCover the French and the French and EuropeanEuropean marketsmarkets efficientlyefficiently

Your offices In Paris Region


ONE CONTACT TO ANSWER ALL YOUR QUESTIONS

Send your request to Vincent ROUMEAS

Environmental Technologies & Services Director

Paris Region Development Agency - International Investment Business Development Unit

Mail: [email protected]

Phone: +33 (0) 1 58 18 69 23

Visit our website www.paris-region.com/cleantech

Meet us during international eventsand optimize your business trip to the Paris Region !

Let us organize an efficient one day tour for you:- Be informed of networking opportunities, potential partners- Choose the locations you want to visit- Manage your recruitment process

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