In order to woo Indian investors, France is offering tax exemptions to start up companies, relaxed visa restrictions to business persons, said Invest in France Agency (IFA) Inward Investment Officer Guillaume Page. He added with new fundamental reforms in place, this is the right time for Indian companies to forge ties with French companies or explore acquisitions.
In an interaction with Business Standard, Page said, “A business person can get three years multiple entry visas and a special permanent visa is given to enterprises or businessmen who creates 50 jobs or makes an investment of €10 million. It also offers major tax exemptions on income earned abroad upto to the extent of 50 per cent, wealth tax exemption, reduction in capital gains tax, reduction in social security contributions, etc.”
He mentioned that a tax regime that is friendly to new companies, new entrepreneurs can offset annual turnover deficits against corporate tax liabilities.
If any Indian company acquires a French company and if some of the senior managers or even the workers are to be removed, the rules of the Government are such that they can follow the negotiated termination clause and manage.
IFA is an advisory board which promotes and facilitates international investment in France.
He said France is highly conducive for investments from India and labour relations have improved enormously. India is the 13th largest investor in France. There are about 100 Indian companies in France and have invested in IT, pharmaceuticals, plastic industry, auto parts, refined petroleum products, garments, textiles and apparel, accessories, leather clothes & footwear which constitute a major share of India’s exports to France.
On being asked about the business potential in France, after recession, he said, ‘ This is the right time for Indian companies to go for acquisition especially in sectors like metal works, automotive industry, IT, pharma as well as animation. Also there is good prospect to forge ties with French companies.”
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Page was in Chandigarh to address a business seminar on investment opportunities in France meant for entrepreneurs who are keen to explore business opportunities and forge ties in various ways with France being organised by Confederation of Indian Industry (CII) Chandigarh.
France holds approximately 1.7 per cent of the market share in India. CII, has also opened a representative office in Paris and organises an annual meeting. Today, more than 300 French companies are established in India, providing over 40,000 jobs.