why register is France AND UK?

[Helen888]

I have noticed (from their headed paper and adverts) some businesses here run by British people have a British company and then state their business in France as the `French office` of this company. What is the advantage of this? Does it excempt them from paying some of the healthcare contributions in France? Does anyone know if it is a `solution` for sole traders too...or just for Ltd companies? I just wondered why it`s done, I know some of the businesses that take this route are quite small and not companies with activities or branches i many many countries - one man bands in fact.

 

Helen

[Will]

If you are wondering whether this would be advantageous for you, then you would have to discuss this in detail with an accountant. It is a solution that is sometimes offered for small businesses, there was even an article that did the rounds of the French magazines and websites suggesting a UK company with a French subsidiary for something as small as a B&B. However, in practice you could end up paying UK and French company taxes, plus paying into both UK and French social security systems, so it seems very unlikely that this would work out better in practice. Members of this forum, operating on a sole trader basis for UK companies while resident in France, have fallen foul of this and ended up paying social charges twice over, so they are probably better qualified than I to comment on the idea.

If a UK company works in both Britain and France, employing people who are resident in France, then I believe it is legally obliged to employ those people through a French subsidiary, hence the two companies. So dual registration is probably for legal reasons rather than to save money.

As with all things there are bound to be ways around them if you use a sufficiently creative accountant.

[Patknighton]

[quote]I have noticed (from their headed paper and adverts) some businesses here run by British people have a British company and then state their business in France as the `French office` of this company. W...[/quote]

Helen, to answer your question: If you see an obvious one man band with a UK company registration living and working in France then he is almost certainly working on the black. He will have been told that if he buys a UK company for 75 quid he can work legally in France and pay no taxes, insurances or cotisations. Not a bad deal is it? Except that it is illegal.

If he works and lives here, he as a director or employee of his company must register here. Or his company must register a branch here ... either way he must register. The trouble is that it is very convenient if he believes that he is working legally and will get away with it until there is a controle or an accident.

Newspapers and magazines don't help by accepting adverts from these cheats.

The Riviera Reporter is on the ball:

http://www.riviera-reporter.com/articles/biz/101Deloc.html

[Iceni]

[quote]Helen, to answer your question: If you see an obvious one man band with a UK company registration living and working in France then he is almost certainly working on the black. He will have been told ...[/quote]

Many thanks for this link Pat.  I am about to be contacted by someone doing what I do but who is off to the UK next week to open his Ltd co and then come back to France to work - so he pays no charges.

I have to explain to him in words of one sylable why I have just registered in France and am in the process of closing a Ltd Co in the UK.  A colleague has told him to contact us as we are fonts of all knowledge. I am afraid that LF and links and advice from this site have helped us make our decisions (along with our French accountant) so will point him in this direction.