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Why Do French Entrepreneurs Leave For London Commerce Essay

Between April 2008 and March 2009, despite the worse recession since the after war, in one twelvemonth, 101 Gallic undertakings were created in the United Kingdom, ensuing in 2600 occupations, harmonizing to UK Trade & A ; Investment, the British authorities bureau which helps the foreign companies to settle in the UK. France is the first European investor in the UK and the tierce of the universe. This shows that France has truly strong links with the UK and they are still turning.

Furthermore this does non merely concern the richestA people: merely 30 % of the people who left France for London are gaining more than a million euros per twelvemonth: all new enterprisers are concerned.

If many people really leave it is because the legal, revenue enhancement and financial and administrative environment is more favourable for entrepreneurship.

After Hollande ‘s election David Cameron and London ‘s city manager Boris Johnson even advertise so that the Gallic semen and created their companies in the United kingdom: A«A You all are welcomeA A» .

Why do Gallic enterprisers leave for London?

Economic grounds

A new jurisprudence passed late in France, set uping a 75 % revenue enhancement for people gaining more than a million euros per twelvemonth. As for the income revenue enhancement in the UK, it is calculated harmonizing to different income beds, as presented on the following page:

Rate

Layers for 2012-2013

10 % ( Get downing rate for nest eggs )

?0-?2,710

20 % ( Basic rate )

?0-?34,370

40 % ( Higher rate )

?34,371-?150,000

50 % ( Additional rate )

More than ?150,000

So the maximal rate you can meet in the UK is 50 % , which is a batch more advantageous than in France.

Furthermore the corporation revenue enhancement in London is about 24 % in 2012 and will diminish to 23 % in 2013. Besides little companies pay a 20 % corporation revenue enhancement and it can be reduced to 4 % thanks to the creative activity of a female parent company in Gibraltar which enables to maintain a great portion of the net income: this is called the Agency Agreement Law.

In add-on the employer ‘s societal security parts are lower in the United kingdom: they are on mean 20 to 30 % higher in France.

We can besides detect that the Value Added Tax is lower in the UK than in France: approximately 17 % for 19.6 % . Furthermore goods bought or sold outside the European Union are zero-rated in the UK, which is non the instance in France ; on the contrary, France tends to promote devouring Gallic merchandises, therefore it does non waver to implement great revenue enhancements.

A favourable environment

Making your company in London is easy and fast. It takes a few proceedingss to make a limited company in the UK and it is really simple ; you can for case do it utilizing the Internet ( a Gallic concern adult male says he had clip to make it taking the train from Lille to Paris, which lasts about on hr, on his computing machine ) whereas in France it takes at least a few yearss. Furthermore there is what is called a “ Ready-made Company ” or a “ Off-the-rack Company ” . This consists in purchasing to a “ company enrollment agent ” , “ canvasser ” or a “ barrister ” , or a “ Chartered comptroller ” a “ Private Limited Company ” already formed by them but non active ; you buy the legislative act. This costs between 110 ? and 170 ? .

Second you can profit from aid and advice. Organizations like Business Booster can assist you in your attack, from the first market survey to the contacts and the installing in the UK. Those sorts of services are by and large non free, but the British authorities has put a free service in topographic point so that more Gallic enterprisers come.

Then there is a general clime in London: a Gallic enterpriser explained in an interview that when she was stating she was making her company to British people, everyone was really enthusiastic, whereas in France, people are more pessimistic. It looks like in France being rich is severely seen, peculiarly since Francois Hollande said he did non like rich people. The enterprisers are enticed to go forth as they feel that they do non portion the values advocated by their state.

Besides London is acute of Gallic business communities, particularly if they are graduated from a “ Grande Ecole ” ; the president of the HEC alumna explains that up to 20 % of some twelvemonth categories are working in London.

LondonA : a mention in the universe

Business people from other states have a good image of London, far from revenue enhancement oasiss. Indeed the UK is the European state that receives the most foreign investings: 30 % of the investors of the City are foreign investors.

A Gallic house 1000mercis ( working in advertisement and selling ) had to take London for commercial necessity, as more and more determination centres are based in this metropolis. For case Expedia, an online travel bureau, grouped its activities and brought its determinations centres back in the UK, explains Dorothee Lacroix, the adult female who opened 1000 Mercis in the UK.

Finally when you are Gallic, you can hold the central offices of your company in London and have your other activities in France, as London is two-hours off from Paris by train.

Those are the grounds why Gallic enterprisers make up one’s mind to travel and settle to London. But to win at that place, some conditions are required.

The conditions

Types of companies

A concern entity is an organisation that is formed in conformity with theA lawA in order to prosecute inA businessA activities, normally the sale of a merchandise or a service. There are many types of concern entities defined in the legal systems of assorted states. These includeA corporations, A cooperatives, A partnerships, A sole bargainers, A limited liability companyA and other specialised types of organisation.

In the United Kingdom, there are 10 different types of companies.

The first 1 is the CIC ( Community Interest Company ) : this sort of company was introduced late by the United Kingdom in 2005 under the Companies Act 2004. In these companies, the societal good is the chief aim. It is a concern with societal involvements whose excesss are chiefly reinvested for that intent in the concern or in the community, instead than being driven by the demand to maximise net income forA shareholdersA and proprietors.

The IPS ( Industrial and Provident Society ) : is a legal entity for trading concerns voluntary organisation in theA United Kingdom, theA Republic of Ireland, andA New Zealand. Recent UK legal developments include the Co-operatives and Community Benefit Societies Act 2003, which has introduced the construct of an plus lock, which a society registered as a community benefit society ( but non one registered as a co-operative ) can present to forestall specified assets being used for unintended intents.

The GP ( General Partnership ) : it is the basic signifier of partnership under common jurisprudence. It refers to an association of individuals or an unincorporated company with the following major characteristics: Created by understanding, cogent evidence of being, formed by two or more individuals the proprietors are all personallyA liableA for any legal actions andA debts the company may confront.

There are besides the LLP ( Limited Liability Partnership ) : it is a partnership where some or all spouses have limited liability. They have a signifier of limited liability as the stockholder ‘s corporations. The board organizes itself and hires corporate officers who so have as “ corporate ” persons the legal duty to pull off the corporation in the corporation ‘s best involvement. An LLP besides contains a different degree of revenue enhancement liability from that of a corporation.

The LP ( Limited Partnership ) : is a signifier ofA partnershipA similar to aA general partnership, except that in add-on to one or moreA general partnersA ( GPs ) , there are one or moreA limited partnersA ( LPs ) . It is a partnership in which merely one spouse is required to be a general spouse. The GPs are, in all major respects, in the same legal place as spouses in a conventional house, it means that they have direction control, portion the right to utilize partnership belongings, portion the net incomes of the house in predefined proportions, and have joint and several liabilitiesA for theA debtsA of the partnership. As in a general partnership, the GPs have existent authorization asA agentsA of the house to adhere all the other spouses inA contractsA with 3rd parties that are in the ordinary class of the partnership ‘s concern.

The Private companies limited by portions: it is one of the most celebrated types of organisation. It has stockholders with limited liability and its portion may non be offered to the general populace. “ Limited by portions ” means that the company has stockholders, and that the liability of the stockholders toA creditorsA of the company is limited to theA capitalA originally invested, it means that the nominal valueA of the portions and any premium paid in return for the issue of the portions by the company. A stockholder ‘s personal assets are thereby protected in the event of the company ‘s insolvency, but money invested in the company will be lost. A limited company may be “ private ” or “ public ” . A private limited company’sA disclosureA demands are lighter, but for this ground its portions may non be offered to the general populace ( and hence can non be traded on a publicA stock exchange ) .

The Public Limited companies: A is aA limited liability companyA whose portions are freely sold and traded to the populace, with a minimumA portion capital of ?50,000. A PLC can be either an unlisted or listed company on theA stock exchanges.

The Private Limited companies by warrant: it is an alternate type ofA corporation used chiefly for non-profit organizationsA that requireA legal personality. A company limited by warrant does non normally have a shareA capital orA stockholders but alternatively has members who act as sureties. The sureties give an project to lend a nominal sum ( typically really little ) in the event of the weaving up of the company. It is frequently believed that such a company can non administer itsA profitsA to its members but ( depending on the commissariats of the articles ) this is non really true.A However, a company limited by warrant that distributes its net incomes to members would non be eligible for charitable position. Until 1981, it was possible in the United Kingdom to organize a company limited by warrant with a portion capital. Like a private company limited by portions, a company limited by warrant must include the postfix “ Limited ” in its name, except in fortunes specifically excluded by jurisprudence. One status of this exclusion is that the company does non administer net incomes.

The Unlimited Companies: it is a hybridA companyA incorporated either with or without a portion capital ( and similar to itsA limited companyA opposite number ) but where the liability of the members or stockholders is non limited, that is, its members or stockholders have a joint, several and limitless duty to run into any inadequacy in the assets of the company in the event of the company ‘s formalA settlement. The joint, several and limitless liability of the members or stockholders of the company to run into any inadequacy in the assets of the company ( to settle its outstanding liabilities if any exist ) merely applies upon the formal settlement of the company. Therefore, prior to any such formal settlement of the company, any creditors or security holders of the company may merely hold resort to the assets of the company and non to those of its members or stockholders.

Until such event occurs ( formal settlement ) , an limitless company is similar with its opposite number the limited company where its members or stockholders have no direct liability to the creditors or security holders of the company during its normal class of concern or being.

Finally, the Sole Proprietorship: besides known as theA exclusive traderA or merely aA proprietary is a type ofA concern entity that is owned and run by one person and in which there is no legal differentiation between the proprietor and the concern. The proprietor receives all net incomes ( capable to revenue enhancement particular to the concern ) and has unlimited duty for all losingss and debts. Every plus of the concern is owned by the owner and all debts of the concern are the owner ‘s.

Bank histories

The British Banking Association has launched an online service naming the UK Bankss that allow abroad occupants to keep an history for aliens. There is no legal limitation halting Bankss accepting clients with foreign references, but the overpowering bulk of Britain ‘s 336 Bankss are unwilling to offer domestic banking services for occupants who do non hold an reference in the UK because of concerns over fraud bar and excess administrative costs. As an exile, open a bank history in England is important: you will so be asked by your employer so that he can pay you your rewards. Which will be hard, nevertheless, is to take the English bank: how to take between HSBC, Bank of England, Barclays Bank, Royal Bank of Scotland, Lloyds TSB? If opening a bank history in the UK is speedy and easy, obtaining different payment methods can be clip devouring, particularly for new exiles: the bank does non cognize, she will non give you instantly checkbooks, debit cards and even fewer recognition cards, and delay to see the regular hard currency flow and a “ normal ” direction of the history.

There are paperss required for opening an history, they are the followerss:

i??Identification ( passport ) .

i??Proof of abode, such as a H2O measure or electricity ( “ public-service corporation measure ” ) . This last papers is frequently a job: from land, you will non even H2O measure or electricity in your name. So retrieve to make the legwork H2O / telephone / telecasting, etc.. , every bit shortly as possible and bespeak a statement or bill exigency.

i??Copies of your bank statements for the last six months ( these paperss are non consistently requested ) .

i??Certificate of a surety ( normally required ) . It is a kind of “ informant of good character ” , which must hold lived in the UK for several old ages and which certifies that you are person respectable. If you arrive on British dirt holding a occupation, the surety will normally be your foreman or a company representative, who may besides give an indicant of your one-year wage.

i??A mention missive ( in English ) from your bank in your place state. This papers is non compulsory but can rush things up, particularly with respect to obtaining a recognition card. Ask your bank that provides banking information: day of the month of opening your history, current balance, mean balance during the twelvemonth, whether or non discovered… In some instances, your bank will make you no missive in English: you will hold to interpret it…

To take a bank, a alien should take advice from the consumer associations. Indeed, between HSBC, the Bank of England, the Barclays Bank, the Royal Bank of Scotland, the Lloyds TSB… it is hard to take in the UK. The City, the concern territory of London, is non the European Capital of finance for nil and the competition is ferocious between banking establishments. To voyage through the jungle of criterions and services it is recommend sing the consumer associations or specialized on banking to do your pick. In peculiar, some web sites offer finish a questionnaire which will direct you to the bank offers that may suit you.

Retentions

The revenue enhancement deductions of utilizing a UK keeping company to keep portions in other UK or overseas companies.A The general rule is that a UK occupant company is capable to UK corporation revenue enhancement on its world-wide net incomes and additions. However, there are a assortment of freedoms potentially available to a UK keeping company which makes holding a UK keeping company an attractive chance in certain fortunes.

Some of the general considerations which may use to UK keeping companies are set out below. Whether a UK keeping company is the appropriate solution for a company or investors really much depends on the peculiar fortunes and the other legal powers involved, so this usher merely gives a brief indicant of the issues that may be relevant. Investors can put in a UK keeping company through a mixture of two methods:

By manner of debt, that is by imparting the company money.

By manner of equity, that is subscribing for portions in the company.

The UK keeping company is likely to do returns to investors either by manner of involvement, in the instance of debt support, or dividends, or in the instance of equity support.

Legislation and ordinances

As a new company in a foreign land, you are likely non familiar with the Torahs, regulations and ordinances in force in the state where you choose to settle. The differences are non merely legal, but besides cultural and understand these differences are indispensable if you move abroad. You may necessitate to take advice on the undermentioned points:

– The complexness of the UK statute law on employment,

– The local demands for licensing, particularly if you run a eating house or a saloon,

– The types of licence for your concern, for illustration in the field of consumer recognition,

– The demand to register with one of the many regulative bureaus in the United Kingdom,

– Almost all concerns must be cognizant of the ordinances sing wellness and safety, and other points which most modern concerns must follow.

The aid of a squad of specializers able to rede you on suited sagely is of import, it is indispensable to the success of your concern, because any trip in this country can be highly expensive.

Recruitment of staff

There are many recruitment bureaus but pay attending to their repute. It is possible to engage the bureau Reed, who has a website extremely developed www.reed.co.uk. The best manner if your budget is reduced is to utilize free-lances that you recruit by puting an advertizement on www.elance.com or www.peopleperhour.com for case. You can besides utilize the local employment bureau, where you can put an ad for free utilizing occupation centres.

About the enlisting of specializers, most companies must trust on attorneies and comptrollers, and it is non easy to do the right picks in the absence of recommendations. Nowadays, most companies that are non directed to an comptroller or a attorney recommendation, the reply is on Google. But be careful ; believe foremost and foremost the followers:

– What is the ideal size of your company? You need to utilize expensive services of a big house or those of a house specialising in the international sphere?

– What is the degree of specialisation of your concern? Do you need to engage a consulting house that will be able to rede you on your concern?

– The location of this squad of specializers is of import?

Whatever manner you choose your squad of specializers, run into them and make non trust entirely on electronic exchanges or web sites. In fact, run intoing one or two houses possible attorneies or comptrollers, and forming what we call in England a “ beauty parade ” ( literally a beauty competition, even if the participants are non needfully beautiful! ) Or name unfastened competition ; you can compare your contacts to see if they are right for you, every bit good as the cost of their services and their organisation.

Which societal protection for the employees?

If you hire employees, you must register with the British societal security ( “ Department of Health and Social Security ” ) and pay the employer and employee societal security parts ( “ National Insurance ” ) , so that they can take advantage of all the benefits ordinances ( wellness insurance, household allowances, old age and unemployment insurance ) . One part is calculated. The rate varies depending on the sum of wage. After tax write-off ( for the financial twelvemonth 2007/2008, the allowance was ? 5,225 per taxpayer, irrespective of their position: individual, married, father or mother ) .

Within the “ Class 1 ” ain employees, it is possible to take one of three governments:

– The first does, in retirement, the minimal pension paid by the State ( public pension “ contracted in ” ) ;

– The 2nd includes the minimal pension plus a private pension based on the salary degree ( “ contracted out salary related ” ) ;

– And the 3rd includes the minimal pension plus a private pension based on the purchase of an rente ( “ contracted out money purchase ” ) .

Since October, the 1st 2008, the minimal pay is ? 5.73 per hr for workers over 22 old ages, ? 4.77 per hr for those aged between 18 and 21 old ages and 3 ? 53 per hr for young person 16 and 17 old ages.

Something of import to detect is that below a wage of ? 100 per hebdomad, no fee is collectible by either the employee or the employer. You will, in add-on, you replace the revenue enhancement aggregator. Will deduct a monthly gross wage of your employees, the income revenue enhancement they owe. Then you will pay straight to the Treasury ( system of “ Pay as you earn ” : PAYE ) .

Concrete illustrations

Arnaud Vaissie , a Gallic enterpriser created “ International SOS ” in 1985 and it is now the planetary leader in its sector ; it is the lone company offering incorporate services in occupational medical specialty and safety. It even has as client the American Department of Defense, for which it deals with the medical files of 30,000 soldiers, 70 % of the 500 universe ‘s greatest planetary companies and 80 % of the CAC 40 companies.

Arnaud Vaissie was named enterpriser of the twelvemonth in 2009 by Ernst & A ; Young ; he besides is president of the Gallic Chamber of Commerce in Great Britain, co-creator of the “ Cercle d’Outre Manche ” , a reflection circle and laminitis of a bilingual secondary school in Kentish Town.

Clemence de Crecy

At the caput of a company

Clemence de Crecy went foremost to the UK in 1999, as she was a jurisprudence pupil ; she went so back to France to take selling classs. She found her first occupation in London in a communicating bureau. At 27 old ages old she decided to make her ain company in imperativeness dealingss in London, called “ Clementine Communications ” . It has eight employees in the capital of the UK and three in Paris. Clemence is now decidedly settled in London she is married to a British and has kids.

After one twelvemonth working in communicating in the UK, she tried to happen a occupation in France but all she could happen was novice occupations. So she stayed in Great Britain, where people trusted her and gave her existent duties. Even after the creative activity of her company, she took the determination to open a subordinate in France. This took three months whereas she had founded her company in England in the Internet in 24 hours. After her experience, she recognizes the issues of France refering the administrative procedures and the burden of the employee ‘s part.

Thierry Tomasin

Owner of a eating house

Thierry Tomasin came to London in 1991, as he was 20 old ages old to larn English. He started as a server at the A«A GavrocheA A» , one of the best eating houses in London ( two stars in the “ Guide Michelin ” ) . He worked difficult and the chef Michel Roux gave him the duty of his vino basement, as he merely was 21. Thierry Tomasin became so a renowned wine waiter and was elected best worker in Great Britain in 1996.In 2007 he opened his ain eating house, the “ ‘Angelus ” . He explained that when he arrived in 1991 he merely intended to remain one twelvemonth and he added that he thought this could non hold happened in France. He said that in Great Britain if you show the will to win and if you work hard, you will be helped and supported, whereas in France the lone manner to acquire a good occupation is to take it from person else. He had the opportunity to function Queen Elisabeth and to construct up Brad Pitt ‘s personal basement.

What do they believe about this experience?

If most of Gallic people came to the UK to work, many of them besides find the life quality really good ( see the undermentioned diagram ) . An illustrator, Charlotte du Jour, testifies that at the get downing she did non wanted to go forth Paris at all, but she had to as she wanted to follow her hubby. She had the thought that London was a sad and dull metropolis, but this turned out wholly incorrect ; she enjoys now the legion Parkss and the regard people have for each other, which well alterations from the aggressiveness reigns in the Gallic capital.

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Therefore after populating an experience in the UK, most of the exiled Gallic enterprisers do non repent their pick but, on the contrary, are more and more positive that they made the right determination traveling to London and would barely travel back to their origin state.

For certain there are non merely successful enterprisers in England, like in France it does non work for everybody, but the failure seems less difficult to manage than in France.

Limits

The fiscal crisis

Europe is, in those times, turning encephalons to seek to acquire out of the current fiscal state of affairs and its Bankss are cautious when it comes to imparting to companies ; hence the clime is non really contributing to entrepreneurship. However, if you can set up your concern during a recession, there is a good opportunity that you are in pole place when the state of affairs improves.

Yet the state was to a great extent affected by the fiscal crisis. The UK and Ireland are the two most indebted states in the European Union. Since January, the 4th 2011 the rate of revenue enhancement on value added revenue enhancement ( VAT ) was raised to 20 % . If a man of affairs wishes to put up his company or a subordinate in London, he should travel to the British Embassy in the state where he lives and see the web site of the UK Trade and Investment ( www.ukti.gov.uk ) , where an adviser can give utile information.

However it is really still much faster to get down a concern in London than in Paris.

Opening a bank history

What is best to make is to be accompanied by an expert of the English banking system, particularly if you do non talk English good plenty. It must be taken into history that everything is progressively managed through the Internet and call centres, so it can be hard to run into a fiscal adviser. Furthermore many local offices are closed on Saturday or Wednesday afternoon. Consequently it is better to fix a list of inquiries for the first assignment and to do certain to understand the chief rules of the British banking system.

Accountancy

To do his settling easier, a foreign enterpriser can engage an comptroller who is familiar with the UK revenue enhancement system and who knows how to negociate rates. If he prefers to get down his ain accounting clasp because of budget restraints, it is extremely recommended to take English accounting developing one twenty-four hours, they can be offered for free.

Cost of Living/Housing

Finding the right topographic point to populate is possibly the most common job that Gallic enterprisers encounter when coming to the UK. To happen an adjustment, it is recommended to come at least two to six months in progress, to supervise the launch of your concern in London, to happen the best office at the cheapest monetary value.

On the top of that, the lodging monetary values and the cost of life are besides higher than in France.

Even if there is a roar in France for existent estateA : an flat now costs more than 7,000 euros for a square metre in norm, and the Gallic capital is one the most expensive metropolis in Europe, it is still below London. Despite the 2007 lessening in the monetary values, after the fiscal crisis, the 1.2 % monetary values decrease over the last twelvemonth and the fact that Paris evolves in the opposite manner, London is still more expensive. Buying a house in this metropolis requires on mean 1.1 million lbs ( 1.3 million euros ) and the square metre monetary value is reported to make 10,000 lbs ( 11,800 euros ) . On the whole, populating in London remains two or three times higher than life in the other European capitals.

The topographic point

In a large metropolis like London, it is indispensable to carefully choose the location of your new concern. What standard should be taken into consideration?

Are you looking for posh offices in London ‘s West End or offices at a sensible monetary value in a vicinity with greater cultural diverseness? Is entree to main roads necessary for your concern? Would you prefer your concern to be located at a ten-minute walk from St Pancras international railroad station to easy and rapidly make your office in Paris or Lille? Or is it better if you are close to Heathrow airdrome? Does the type of concern you intend to develop find the location of your site, or at least cut down the possibilities? For illustration, if you are a forte retail merchant, do you desire to be present in an country where other forte retail merchants already are or in the contrary far off from them?

All those issues are critical and need to be addressed before you decide to go forth for London, as it might non work like in every other metropolis.

Decision

There are many advantages for enterprisers to settle in the UK, but there are besides the bad sides that should non be forgotten. But what is truly of import is, for an enterpriser, to germinate in a nice and positive ambiance, which is the instance in London and non needfully in France.

So it is above all London ‘s clime and its image in other states that could finally promote go forthing.

Beginnings

hypertext transfer protocol: //www.slate.fr/monde/54887/riches-fuite-londres-bruxelles-suisse

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hypertext transfer protocol: //www.chiclondres.com/fr/people/frog-valley/arnaud-vaissie-success-story-franaise-a-londres

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