3,000 US companies have already invested in France

And you ?

The US is by far the #1 foreign direct investor in France. In 2006, the US was the leading foreign direct investor in France, generating 23.8% of the nearly 40,000 jobs created – up 32.7% over 2005. Germany ranked 2nd (16.4%) and the UK was 3rd (10.6%.) This marked the fourth straight year that US investments in France continued to rise. There are 3,000 US companies operating in France, employing 563,000 people.

Overall FDI (including mergers and acquisitions) in France totaled $88 billion in 2006, ranking it 3rd in the world, behind the US and the UK.

These excellent results are based on the structural assets of France’s economy (market, labor force, infrastructures, etc). They’re also a result of recent improvements in France’s business climate.

Over the past few years, France has changed more than most people realize. Reforms have built a more globally competitive and business-friendly environment for foreign companies:

- Setting up a business in France now only takes a few days and costs only a few euros.

- Higher marginal tax rates are down to 40%, the same as in the UK, and are among the lowest in Europe. The corporate tax rate is now in line with European averages, when considering all of the exemptions available.

- The labor market is more flexible with new contracts and overtime work opportunities.

- Privatizations of state-owned companies, like the electricity company EDF, have increased competition in the goods and services market to benefit consumers.

Recent elections in France have created a new momentum for change which will benefit foreign direct investors in two major ways:

- the labor market will be made more flexible with a new over-time regulation and a new hire contract;- the taxation system will be improved for companies (reducing corporate tax by 5%), new fiscal shield for individuals.

Invest in France Agency will actively promote the new more business-friendly environment, keep US investors informed on changes that can benefit their business, and remain a key contact in informing them of new opportunities that arise in their industry in France.

Invest in France and ISD cooperate to support clients and with specific conferences and articles.