Whereas many companies have suffered prior to now 12 months or so, one sector that has profited is that of software program. Software program as a service (SaaS) firms similar to Zoom and Slack have benefitted from a big contingent of distant staff, and this pattern seems to be set to proceed, as many firms embrace the advantages of distant working.
Of all of the locations to begin a software program firm, France might not be the nation that involves thoughts. But Europe’s third greatest economic system is changing into a world chief to rival Silicon Valley – and a great place to stay, work and discover the expertise and assist that any nice tech enterprise wants.
Making issues tick
Consider all of the items of software program you utilize every day. It’s a listing that doubtless rises into the handfuls, from telephone apps, to common utilities similar to Microsoft Workplace, Google Drive and Adobe Inventive Suite, to industry-specific functions. The world runs on software program, and behind all of it are some terribly profitable firms. The worldwide revenues for enterprise software program alone reached $214 billion in 2019, and are projected to rise to $324 billion by 2024.
One of many nice benefits of a software program firm is that it’s primarily futureproof. Whereas there’s a want to repeatedly develop and enhance your merchandise, these modifications could be rolled out instantaneously on-line, versus changing bodily merchandise or {hardware}. And the marketplace for this sort of software program is simply going to get greater, each as extra companies use software program to enhance their effectivity, and as extra folks start to make money working from home.
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You might have already got experimented with or applied a few of these applied sciences throughout the coronavirus pandemic. Apps similar to Slack and Groups enable for distant collaboration, Zoom and Meet enable for video conferencing, and Toggl or Basecamp will let you handle time and tasks extra effectively. This isn’t to say issues like constructing administration software program for facility managers, or warehouse administration software program for warehouse operators.
The longer term is French
Software program is an efficient enterprise to get into, then – however why begin a software program enterprise in France? The reply is in a collection of reforms and programmes that began again when present President Emmanuel Macron was a authorities minister. The crux of this was the institution of La French Tech, an initiative to ascertain tech hubs round France to carry companies collectively, and promote them to the world. There are actually 18,786 startups with La French Tech accreditation, in addition to over 2500 traders and 98 seed accelerators.
9 cities had been initially accredited as French tech hubs in 2014, together with Lille, Lyon and Bordeaux. Since then, 4 cities have been granted ‘thematic’ standing for various specialities, whereas 4 areas in France even have their very own standing. These areas are bustling with co-working areas, characteristic startup-friendly infrastructure similar to excessive web speeds, and profit from assist and funding below the La French Tech umbrella.
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Round seven years on from the primary accreditations, La French Tech remains to be going robust. Because of a 1.6 billion euro public funding fund from France’s nationwide funding financial institution, startups have proliferated throughout the nation, with wealthy ecosystems in a number of cities. France has now despatched the biggest overseas delegation to the Shopper Electronics Present for a number of years working, and boasts ten tech unicorns, including 4 in 2019 alone. Notable names embody ride-sharing app BlaBlaCar, music service Deezer and rising e-Well being platform Doctolib.
The center of Europe
In addition to nice infrastructure, France boasts nice expertise. It’s house to the world’s high engineering faculty, the second largest arithmetic establishment, and a spread of different world-leading training centres. Maybe extra importantly, being in France places you proper on the coronary heart of the European Union, with all the advantages that affords. In addition to benefiting from nice commerce offers and transport infrastructure, expertise can freely journey inside the Schengen space – supplying you with entry to a broad pool of potential staff.
France has additionally made strides to enhance its common enterprise setting, which has typically been perceived as inefficient and stifling. Most related is the creation of a world-leading tech visa, providing four-year stays with no diploma, charges or quotas. However Macron’s authorities has additionally moved to implement a collection of labour reforms, together with versatile bargaining, simplified contract terminations, and inspiring longer opening hours. Each store being shut on Sundays is changing into a factor of the previous!
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Taxes and bills have additionally come below the microscope. French tech startups can profit from a 30% deduction on their R&D bills, probably the most beneficial phrases of any OECD member. Capital features tax has additionally been lowered to 30%, whereas wealth and exit taxes have been eradicated fully. Till 2017, the underside price of company tax was 28%; this is because of be diminished to 25% from 2022 onwards.
Whereas the current seems to be fairly good, the long run needs to be even higher. France is prone to profit considerably from Brexit, with its close to neighbour now having left the European Union. A pure house for US companies and others in search of a gateway into Europe, the UK is now a lower than very best vacation spot, given that companies there can not profit from the trimmings of the EU. Numerous monetary corporations have already made the transfer to Paris, and with the UK going through unfavourable commerce phrases, extra departures appear doubtless.
If all of these advantages aren’t sufficient to steer you about French software program’s future, there’s one thing to be mentioned for the life-style too! Residing in and attracting staff to France isn’t a tough promote, whether or not you’re primarily based within the sun-kissed south or one in all its lovely and thriving metropolises. As different conventional tech hubs wane, high quality of life goes to turn into a fair greater consider selecting your corporation location, and there could be few higher locations for meals, tradition or worker advantages. So elevate a glass to French software program firms – and make it classic.
If you happen to want extra data on firm formation and registering a brand new enterprise in France – or for points referring to tax and accountancy in France or checking account introduction in France, please contact us immediately by calling 0033 (0)1 53 57 49 10 or emailing us from our contact web page. You may as well obtain our free guides beneath.
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