A real interest for Italian companies to come and set up in France
Italy and France are both members of the European community. Therefore Italian companies can operate in the French market under the same conditions as French companies.
Italy is a border country with France and there have been many exchanges between the two countries for centuries. The advantages for an Italian company wishing to set up in France are therefore varied.
First of all, the Franco-Italian economic relationship is dense: Italy is now France’s 3rd largest trading partner as well as its 3rd largest customer (source). In addition, for geographical reasons, the French market is easily accessible to Italian companies that want to expand their business through two major access points, the Alps and the Mediterranean. A true trade center of Southern Europe, France is close to many countries (England, Belgium, Luxembourg, Germany); From their French subsidiaries, Italian companies can easily approach these markets.
Then, Italian products, both food and industry, were well known and appreciated by the French. The transition from indirect sales (through French resellers) to direct sales (by creating branches or subsidiaries on the site) is simpler.
Economic and tax advantages for an Italian company to invest in France
For an Italian company, the possibility of setting up in France offers many advantages. Today, the VAT rate is 20% in France while it is 22% in Italy where there is only one way to recover VAT: in debits. Therefore, each sales invoice creates a VAT debt to the State that must be paid the following month.
This often puts pressure on the cash flow of Italian companies because customers must pay upon receipt of the invoice. Meanwhile in France there are, at the moment, two methods of recovery: one of collection and the other of debits which thus offer managers a better management of money.
Due to their proximity and the intensity of trade, many projects have been set up for decades to encourage economic cooperation between the two countries.
Starting with the construction of the LYON-TURIN railway line that will allow faster transportation of goods from one country to another and further increase trade.
One of the major development programs is that of the Franco-Italian Business Accelerator, this program that provides support for French SMEs that want to set up in Italy through the Business France office in Milan and the CCI France Italy . It is a very important information exchange system for businesses.
The council of accountant important to find the device adapted to the successful installation of the Italian company in France.
The Italian business leader? A different profile of the French business leader
The Italian customer needed contact, he suspected. Everything must be explained to avoid fines and penalties. In France, it is more structured. It is a mentality that can be understood in a culture of synthesis specific to France, the Italian customer always needs to be accompanied, “taken by the hand”, alerted to risks and dangers, what is legal and where not.
It should also be pointed out that there is a very different relationship between the taxpayer and the taxpayer between the two countries. In Italy, every mistake or violation is immediately punishable by a fine; in France, the tax service educates more and the penalties are lower in the eyes of Italians. We can see a true cooperative relationship between the two parties.
Accountants’ fees are easier to get in France than in Italy because the culture is different. France sells consulting fees that are available for its clients while in Italy, you have to pay based on an annual contract in addition to the fees for each declaration or certification.
Simple conditions, suitable for setting up in France
There are no specific regulations, except for the European legal framework set under Schengen. However, to be able to set up in France, an Italian company must still make a declaration of person if it employs employees in France and has a permanent establishment, with domiciliation and a dedicated Siret number.
In addition, Italian business leaders quickly want to be closer to established reliable contacts, such as an accountant for example. This is the key contact that will allow them the best preparation for their arrival in the territory, which will certainly be supported by specialists in specific areas such as financial support or salary management.
The Auvergne-Rhône-Alpes region is a logical natural path for Italian companies. More and more they choose to settle in this region to be able to invest in other countries bordering France. It is an important advantage for the economic health of the region to be able to count on many Italian players in the metallurgy sector in particular.