Why Do French Entrepreneurs Leave For London Commerce Essay Example

with straightforward procedures, whereas it takes several days in France. Alternatively, professionals like registration agents, solicitors, or chartered accountants offer pre-formed "Private Limited Company" for costs ranging between ?110 and ?170. Entrepreneurs can also seek assistance and advice from organizations like Business Booster for market research, establishing contacts, and setting up a business in the UK at an additional cost. The British government provides a free service to attract more French entrepreneurs as well. French entrepreneurs are motivated to establish businesses in London due to the positive attitude they encounter from British people compared to the negative attitude often experienced in France regarding wealth perception. Many entrepreneurs feel compelled to leave their homeland due to a misalignment with their country's values. London is highly regarded by businesspeople from other countries due to its significant French business community and graduates of prestigious schools ("Grande Ecoles").London is a popular choice for companies like 1000mercis and Expedia to establish decision centers due to its positive reputation and high foreign investments. French entrepreneurs also benefit from being able to set up their company headquarters in London while conducting business activities in France, thanks to the convenient train ride between the two cities. These factors make London an attractive destination for French entrepreneurs. However, success in this city requires meeting certain conditions, such as forming companies that comply with legal requirements for conducting business, which typically involve selling products or services. Different states have different types of entities defined by their legal systems, including corporations, cooperatives, partnerships, sole traders, limited liability companies, and specialized organizations. In the United Kingdom specifically, there are 10 different types of companies available under the

Companies Act 2004. The text discusses various types of associations or companies, including the General Partnership (GP), which is a basic form of partnership where individuals come together to form an unincorporated company. In this type of partnership, all proprietors are personally liable for any legal actions or debts faced by the company.The text discusses various types of partnerships and companies, each with their own characteristics and legal implications. One type mentioned is the Limited Liability Partnership (LLP), which grants limited liability to some or all partners similar to shareholders in corporations. The LLP also has different tax liabilities compared to a corporation. Another type is the Limited Partnership (LP), which combines general partners (GPs) and limited partners (LPs). In an LP, only one partner needs to be a general partner. An example of a specialized company is the Community Interest Company (CIC), which focuses on societal good and reinvests excess funds for that purpose rather than prioritizing profit. Industrial and Provident Society (IPS) serves as a legal entity for trading concerns in the UK, Republic of Ireland, and New Zealand. Recent legal developments in the UK include the Co-operatives and Community Benefit Societies Act 2003, allowing community benefit societies registered as such to prevent specified assets from being used for unintended purposes. General Partnerships (GPs) within a Limited Partnership possess similar legal rights and responsibilities as partners in a conventional company, including management control, asset use, predetermined profit sharing proportions, and joint and several liabilities for debts. GPs can act as agents for the company and enter into contracts with third parties on behalf of other partners.
Private companies limited by shares are a popular

organizational type where shareholders have limited liability and cannot offer their shares to the general public. The term "limited by shares" means that shareholders' liability is restricted to their initial investment, including the nominal value of shares and any premium paid. This protects shareholders' personal assets in case of insolvency, but any invested funds will be forfeited.

There are two categories of limited companies: private and public. Private limited companies have fewer disclosure requirements and cannot offer their shares to the general public or trade them on a public stock exchange. Public Limited Companies (PLCs) have limited liability and their shares can be freely bought, sold, and traded with a minimum share capital requirement of ?50,000. PLCs can choose to be listed or unlisted on stock exchanges.

Private limited companies by warrant serve as an alternative classification for nonprofit organizations seeking legal recognition. Unlike traditional companies, they do not have shareholders or share capital. Instead, they may have guarantor members who pledge a nominal amount if the company closes down. Whether these companies can distribute profits to their members depends on the provisions stated in their articles.However, if a company limited by warrant does distribute profits, it would not be eligible for charitable status. Until 1981, in the UK, it was possible to establish a company limited by warrant with share capital. These companies are similar to private companies and must include "Limited" in their name unless exempted by law. One condition for exemption is that the company does not distribute profits.

Unlimited Companies are a hybrid type of company that can be incorporated with or without capital, just like limited companies. The key difference lies in the

liability of members or stockholders. In an unlimited company, their liability is non-limited, meaning they have joint and several duty to fulfill any inadequacy in assets during formal settlement proceedings. It's important to note that this joint liability only applies during formal settlement processes; before that happens, creditors or security holders can only seek recourse from the assets of the company itself and not its members or stockholders.

During normal business operations, an unlimited company is similar to its limited counterpart as members or stockholders do not have direct liability towards creditors or security holders.

Lastly, there is Sole Proprietorship, also known as sole trader or proprietary. It is a type of business entity where one person owns and operates the business with no legal distinction between the owner and the business.The owner assumes responsibility for all profits (subject to business taxes), liabilities, and debts and owns all assets. They are accountable for all financial obligations. The British Banking Association has introduced an online service that helps identify UK banks that allow foreigners to open accounts. Although there are no legal restrictions on accepting clients with foreign references, most of the 336 UK banks are hesitant to offer domestic banking services to non-UK residents due to concerns about fraud prevention and additional administrative expenses. For expatriates, opening a bank account in England is crucial as it is necessary for employers to pay wages. However, choosing a specific bank can be challenging considering options like HSBC, Bank of England, Barclays Bank, Royal Bank of Scotland, and Lloyds TSB. While opening a bank account in the UK is generally fast and easy, obtaining various payment methods can take time,

especially for new expatriates. Banks may not grant immediate access to checkbooks, debit cards or credit cards without evidence of regular cash flow and proper account management. The necessary documents for opening an account include identification such as a passport and proof of residence like utility bills (e.g., water or electricity bills). Obtaining essential documents such as water, telephone, and television services can be challenging if you are new to the country without any existing services in your name.
It is important to prioritize obtaining these papers promptly and request an emergency statement or bill if needed. Bank statements from the past six months may vary in requirement but are typically asked for. Another crucial document is a surety certificate that demonstrates one's good character. This certificate is usually certified by someone who has lived in the UK for several years. If you have a job upon arrival, your employer or representative can often serve as your surety and provide information about your annual salary. Having a reference letter from your bank in your home country can also be beneficial, especially when applying for a credit card.

Requesting detailed banking information such as the account opening date, current balance, average balance throughout the year, and any overdrafts occurred would be advisable. If this letter is not available in English, translation will be required. Seeking guidance from consumer associations can be beneficial for newcomers who are unsure about which bank to choose.

In the competitive banking industry of the City of London in the UK, options include HSBC, the Bank of England, Barclays Bank, the Royal Bank of Scotland, and Lloyds TSB. To navigate through different standards and services,

it is recommended to consult consumer associations or specialized banking websites that may even offer a questionnaire to help find suitable bank offersUsing a UK holding company to hold shares in both domestic and international companies can lead to tax deductions. Generally, UK resident companies are subject to UK corporation tax on their worldwide earnings and gains; however, exemptions are available for UK holding companies under certain circumstances. The suitability of a UK holding company depends on specific circumstances and other jurisdictions involved. Investors have two methods for investing in a UK holding company: debt or equity methods where they either lend money or subscribe for shares respectively. Returns for investors from a UK holding company can come through involvement (in case of debt support) or dividends (in case of equity support). It is important for new companies expanding overseas to familiarize themselves with legal and cultural differences. This involves understanding the laws, rules, and regulations applicable in the target country. Seeking advice on various aspects such as complexities of UK employment law, local licensing requirements (especially for restaurants or bars), necessary business licenses (e.g., consumer credit), registration with regulatory agencies in the UK, and compliance with health and safety regulations is recommended. Having a team of specialists to provide guidance is crucial as mistakes in this area can be financially burdensome. When hiring employees, it is essential to consider the reputation of recruitment agencies like Reed's well-developed website at www.reed.co.uk.
If you have budget constraints, one effective strategy is to hire freelancers through job advertisement websites like Elance.com or PeoplePerHour.com. Another option is to use local employment agencies where free ad postings are available through

job centers. Recommendations from lawyers and accountants are commonly relied upon when hiring specialists; however, if access to these suggestions is limited, Google can be a helpful resource. When making decisions, it's important to consider factors such as ideal company size and level of specialization required for your business. When deciding whether to hire a consulting firm, it becomes crucial to align their expertise with your industry. It's also important to consider the physical location of specialists and how it may impact your operations. Meeting the team in person instead of relying solely on electronic exchanges or websites is recommended. You could even organize a "beauty parade" or open competition to assess potential lawyers or accountants, allowing you to compare contacts, evaluate their suitability, and understand the cost of their services. If you choose to hire employees, you need to register with the British societal security known as the "Department of Health and Social Security" and pay both employer and employee societal security contributions (National Insurance).This text highlights the eligibility of employees for various benefits, including health insurance, family allowances, old age benefits, and unemployment insurance. The required contribution amount varies depending on salary levels. It is important to note that tax write-offs are available for the 2007/2008 financial year with a ?5,225 allowance per taxpayer regardless of marital or parental status.

Within the "Class 1" employee category, there are three retirement plan schemes to choose from. The first scheme guarantees a government-paid minimum pension known as "public pension contracted in." The second scheme includes the minimum pension along with a private pension based on salary level called "contracted out salary related" pension. The third scheme

combines the minimum pension with a privately purchased annuity referred to as "contracted out money purchase" pension.

As of October 1st, 2008, individuals aged 22 and above have a minimum hourly wage of ?5.73. For those between 18 and 21 years old, it is ?4.77 per hour while individuals aged 16 and 17 have an hourly rate of ?3.53. If wages fall below ?100 per week, no fee is required from either the employee or employer.

In addition to your other responsibilities, you will also serve as a tax collector by deducting your employees' monthly gross wages and directly paying their income tax to the Treasury through the "Pay as you earn" system (PAYE).

Entrepreneurship offers various examples such as Arnaud Vaissie who established "International SOS" in 1985.This company has established itself as a global leader in integrating occupational medicine and safety services. Its clientele includes the American Department of Defense, for which it manages medical files for 30,000 soldiers. Additionally, it is selected by 70% of the world's largest global companies and 80% of CAC40 companies.

Arnaud Vaissie, who was honored as Entrepreneur of the Year in 2009 by Ernst & Young, currently holds positions such as president of the French Chamber of Commerce in Great Britain. He is actively involved in various initiatives, including co-creating the "Cercle d'Outre Manche" reflection circle and founding a bilingual secondary school located in Kentish Town.

In Clemence de Crecy's case, she initially went to the UK as a law student but later returned to France to pursue marketing courses. She found her first job at a communications agency in London and eventually started her own press relations company called "Clementine Communications," which

now employs eight individuals in London and three in Paris.

Clemence settled in London due to her marriage to a British individual and having children there. Despite attempting to find work in France after one year of working in communications in the UK, she only managed to secure entry-level positions. This led her to remain in Great Britain where people trusted her abilities and entrusted her with real responsibilities.Clemence, despite already having a successful company, decided to open a subsidiary branch in France. This process took three months, whereas setting up the English company online only required 24 hours.

Thierry Tomasin encountered challenges with France's administrative procedures and employee contributions when he opened his restaurant "Angelus." Arriving in London in 1991 to learn English, he started as a server at the renowned restaurant "A Gavroche." Chef Michel Roux recognized his hard work and promoted him to manage the wine cellar at just 21 years old. Thierry Tomasin became a renowned sommelier and was named best worker in Great Britain in 1996. In 2007, he opened his own restaurant called "Angelus." According to Thierry, success can be achieved through determination and hard work in Great Britain; however, in France, good jobs are obtained by taking them from others. He has served Queen Elisabeth and built Brad Pitt's personal basement.

The majority of French people who come to the UK for work also find the quality of life to be very good (as depicted below). Illustrator Charlotte du Jour initially had reservations about leaving Paris to be with her husband in London due to believing that the city would be sad and dull. However, she quickly discovered that this misconception

was completely incorrect. She now appreciates the abundance of parks and how people respect one another compared to the aggression prevalent in Paris.Many French entrepreneurs who were exiled in the UK no longer regret their decision and increasingly believe they made the right choice by moving to London. They are unlikely to consider returning to France. While both England and France have successful entrepreneurs, managing failure appears to be easier in England. However, there are limitations. The current financial crisis has made European banks cautious about lending to companies, creating an unfavorable climate for entrepreneurship. Nevertheless, if a business can be established during a recession, it stands a good chance of thriving when conditions improve.

Unfortunately, both the UK and Ireland have been heavily impacted by the financial crisis and hold substantial debt within the European Union. Starting a business in London requires visiting the British Embassy and consulting the website of UK Trade and Investment for helpful information. It is recommended to be accompanied by an expert on the English banking system, especially if English is not spoken fluently.

However, compared to Paris, starting a business in London is still faster.Conducting business in the UK is increasingly done online or through call centers, which can make finding a financial advisor difficult.Many local offices are closed on Saturdays or Wednesday afternoons.Therefore, it is advised to prepare a list of questions for the initial meeting and ensure understanding of the main rules of the British banking system.
Hiring a UK tax system-savvy accountant may be beneficial for foreign entrepreneurs, but attending English accounting training sessions may also be advisable if budget constraints prevent hiring an accountant. French entrepreneurs relocating

to the UK often encounter challenges in finding suitable accommodation and should begin their search at least two to six months in advance while keeping an eye on business launch activities in London for affordable office space. Despite the real estate boom in France, housing prices and the cost of living in London are higher. The average apartment price in France now exceeds 7,000 euros per square meter. However, London remains one of Europe's most expensive cities. Even after the fiscal crisis in 2007, London is still more expensive compared to Paris. The average house price in London is 1.1 million pounds (equivalent to 1.3 million euros) with a reported square meter price of 10,000 pounds (around 11,800 euros). Overall, living expenses in London are two or three times higher than those in other European capitals.

When selecting a location for your new business within a city like London, there are important factors to consider: Do you prefer prestigious offices located in London's West End or affordable offices situated within culturally diverse neighborhoods? Is access to main roads crucial for your business? Would you like your office to be within walking distance from St Pancras International railroad station for convenient travel access to Paris or Lille? Alternatively, being close to Heathrow Airport might be more advantageous.Does the nature of your business determine the location of your website or restrict possibilities? For example, as a specialty retailer, do you prefer to be situated near other specialty retailers or far away from them? All of these considerations must be taken into account before deciding on London as it differs from other cities.

Decision

There are numerous advantages for

entrepreneurs who choose to establish themselves in the UK, but it is also important not to overlook the disadvantages. However, what matters most for an entrepreneur is thriving in a positive and enjoyable environment, which can be found in London rather than France. Ultimately, it is primarily London's climate and international reputation that may ultimately drive relocation. Sources: - hypertext transfer protocol: //www.slate.fr/monde/54887/riches-fuite-londres-bruxelles-suisse - hypertext transfer protocol: //www.challenges.fr/ocde/20120801.CHA9407/capitale-des-jeux-olympiques-2012-londres-est-elle-toujours-aussi-business-friendly.html - hypertext transfer protocol: //www.chiclondres.com/fr/people/frog-valley/arnaud-vaissie-success-story-franaise-a-londres - hypertext transfer protocol: //www.lefigaro.fr/immobilier/2010/11/25/05002-20101125ARTFIG00611-paris-et-londres-plus-cheres-que-les-autres-capitales.php -hypertext transfer protocol://www.lefigaro.fr/actualite-france/2011 /04 /22 / 01016