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Looking forward | Loi Pacte: making French business great again

Looking forward | Loi Pacte: making French business great again

Publié le : 10/07/2018 10 juillet juil. 07 2018

The Macron government speeds ahead with its reforms and bills to help favour economic development and modernization of the French model by finding inspiration in (and improving upon) what exists in other legal systems and political cultures. Next step is the Loi Pacte, intended to help companies innovate, evolve, grow, and create new jobs.
Here are the ten main goals of this law:

1. Simplifying thresholds inducing new obligations.

This is intended to favor and help small and medium sized companies.

2. Removal of the “forfait social” (employer social contributions) on profit-sharing and participation.

Incentive agreements will be facilitated for companies with fewer than 250 employees.

3. Rethinking the place of business in society.

The French Civil Code and the French Commercial Code will be amended to reinforce the consideration of social and environmental issues in the strategy and activity of companies.

4. The possibility to create businesses 100% online at a lower cost.

The life of entrepreneurs will be simplified by creating a unique online platform for corporate formalities.

5. Facilitate the rebound of entrepreneurs.

The time and costs of bankruptcy proceedings will be reduced and their predictability improved.

6. Bringing public research closer to the company.

Researchers wishing to create or participate in the life of a company will have a simpler time, in order to boost the links between public research and the private sector.

7. Facilitate the transfer of business.

The Dutreil Pact will be renovated for free transfers of companies. Business transfers to employees and the financing of the takeover of small businesses will be facilitated.

8. Simplify and ensure the portability of retirement savings products.

Everyone will be able to keep and grow their savings throughout their career and the capital outflow will be facilitated.

9. Supporting small and medium companies in export.

Regional administrations will be modified in order to allow small and medium companies easier access to the international market.

10. Protect strategic businesses

The prior authorization procedure for foreign investments in France will be strengthened and expanded to better protect strategic sectors.
The action plan will also include regulatory and non-regulatory measures as well as fiscal measures that will be incorporated into the 2019 financial project. The PACTE law will be examined by the French Parliament in September 2018.


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