(1) Company form
Companies can set up a branch or a subsidiary to engage in commercial activities：
1. Subsidiary. Subsidiaries are companies incorporated under French law and, as such, are separate legal entities. Segregation of subsidiaries’ and parent companies’ assets means that foreign companies do not bear unlimited liability for the debts of their French structures.
2. Branch. Branches enable foreign companies to establish a beachhead in France for a commercial activity. Branches are not separated legal entities and the parent companies are responsible for their initiatives. They may carry out all the operations of an industrial or commercial activity. The subsequent conversion of a branch into a separately incorporated subsidiary is possible, but must comply with rules governing the sale and transfer of business, and is subject to tax.

(2) The main visa categories are as follows.
1. Short visa (short-term business visa). The short visa is valid for a maximum of 90 days and authorities maximum stays of 30 days within 90 days, and applicant can go to France many times within 90 days.
2. Residence permit of company legal person (person in charge). According to the existing document, if legal person of Chinese company boss want to get residence permit in France, the request is filed with the French consular authorities in Chinese residence. It consists of a request for a long-stay visa and a presentation of the business activity that you wish carry out in France. In the case of a new country being set up, the consular authorities consult legal person of company as to the economic viability of the investment project. If the project involves insertion into an existing business activity, the applicant must provide the consular authorities with proof of remuneration that is equivalent, at least, to the statutory minimum wage. The consular authorities may then issue a long-stay visa to enable your entry into France. You must apply to the Prefecture of your place of residence for a residence permit as a trader. About Details information we need to further consultation after arriving in France
3. High level management staff visa, the application has dealings with the regional ANAEM only, which then takes charge of the application. These streamlined procedures apply to high level management staff and senior executives of working more than 6 months.
4. Temporary residence permit, that is, expatriated salaried employee temporary residence permit, is valid for 3 years. It is subject to several conditions, in particular, the employee’s gross monthly salary must be equal to a minimum 150% of French statutory minimum wage, which amounts to 1920 Euros.
5. Temporary residence permits of employee. If companies employ staffs who don’t live in France, they should obtain the relevant documents to the police station, and then submit their applications.
6. The “student” temporary residence permit. It allows the student to carry out a secondary professional activity equal to up to 60% of the legal working year; a work permit is not required, a declaration filed with the Prefecture of the place of residence submitted by the student’s employer being sufficient.
7. The salary of temporary worker must be up to at least 8.44 Euros per hour, and they need to report to relevant government departments.

(3) Residence permit of employee’s family
The employee’s family (spouse and children) can apply for the “vie vie privée et familiale” (private and family life) residence permit, if the employee has been fully resident in France for at least 6 months. This residence permit enables them to access the labor market.

(4) Conditions for applying for a work permit
French government strictly restricts companies to employ foreigner by the law and the minimum salary of employee. The applicant must have special Skills and be irreplaceable, and the salary is at least equal to the French statutory minimum wage. The employment situation can give rise to objection regarding applications for work permits for workers. If a company required an employee to work in France, they must prove that there isn’t the same staff in French labor market. Employees without a work permit require paying special fee

(5)Three basic types of employee and the analysis of human costs
Generally speaking, there are three types of employee in French company：
1. Expatriated salaried employee. High human costs, they should be a very small number of key management staff of company
2. Staff in France. They should be the backbone of company, and receive basic salary each month.
3. Temporary worker and student of doing part-time job. Low human costs, company should employ them as much as possible.

(6) What are the consequences of a permanent establishment?
1.Corporate income tax: Small companies that their profit are less than 38112 Euros should pay 15% of company profit, and companies that their profit are more than 38112 Euros should pay 33% of company profit.
2. Value added tax (VAT): France’s standard VAT rate on sales of goods and services is 19.6%
3. Business tax: there are two calculation ways. First, the values of company land, building and production equipment multiply their corresponding percentage. Second, Business tax is 3.5% of value added tax.
4. Payroll tax: We need consult for specific sum.
5. Property tax: Companies are subject to property tax on the rental value of land and buildings. The tax base is equal to the cadastral rental value (cadastral revenue) minus a standard 50% rebate. The amount of the tax to be paid can be calculated by multiplying this base by the rate voted by the local authorities. The rental value of industrial units is always 8% of the value of fixed assets. The rental value of commercial premises is assessed by the administrative authorities.
At present, AULNAY pay 274664 Euros of property tax to French government each year. STAINS: in 2006 property tax is 208,888 Euros; in 2007 property tax is 212,608 Euros.