Why Is It So hard To Start A Business In France

Why Is It So hard To Start A Business In France

Hello, Thanks for many readable articles which I have read but never been able to contribute to, such is the wealth of knowledge contained therein.

Unfortunately this is not a contribution either but another question. A friend of mine has tried, unsuccessfully, to start a motor cycle rental business in France. The reason he never even got off the ground was that he needed insurance.

What French based motorcycle rental there is appears to be arranged holiday mopeds in places like Corsica and rental of English registered vintage motorbikes.

Living in Britain we assume anything can be insured at a price but not so in France? It occurs to me that this seems to be an area where EU still has borders and countries can ignore such issues.

Do you have any knowledge of this subject that can explain this apparent anomaly?

best wishes, Seamus

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Hello Seamus

An interesting question and it would be unfair to give the quick answer usually given which is along the lines that French legislation prohibits, with sever penalties, anything which is not defined, licensed, controlled and then taxed.

There are many things which can be done freely in most countries but can only be done in France by regulated and (expensively) licensed bodies. Insurance is one, also you cannot set up as a travel agent, estate-agent or many other things in France.

However, ask five French "experts" the same question and you will always get more than five different answers. In theory you should be able to get a company or broker to arrange insurance you friend desires, but the bureaucratic and "in a box" mentality of most people working for any company will switch to an automatic negative when asked something slightly outside their limited personal knowledge. The "no can do" mentality is the default in France.

The "guidelines" or "directives" from the EEC which are often said to be "laws" to suit the political climates of other countries are often ignored by French if it affects the amount of control over business and therefore taxation.

In France I do not know of an insurance market like Lloyds where anything can be underwritten, is it not possible to arrange this sort of special insurance from a good UK or American broker?

Best wishes from the country of controlled liberty

Tony