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MSI's French accounting firm member, Groupe Synerga, provides an analysis of the economic appeal of France for those interested in setting up a business:
Why choose France?
France is the Western European country where general business costs are lowest. According to the guide to international business costs, France comes third after Singapore and Canada.
The cost of setting-up and running a business is very competitive, especially in the energy, transportation and real estate sectors.
Cost of energy
France places ahead of the United States and Germany, and equal with the United Kingdom in terms of energy costs (cost per kilowatt/hour). It also comes ahead of the United States and Germany for the cost of gas. France is first in variability of the cost of electricity.
Real estate costs
When it comes to commercial real estate, France benefits from significant advantages which make it attractive for businesses seeking to locate in the country. Prices are affordable, and the urban and suburban transportation network is excellent.
Paris-Ile-de-France has the largest commercial real estate stock in Europe, ahead of London, with 49 million square metres of office space. In comparison with other capital cities, Paris' disposable real estate prices, in terms of professional work space as well as housing, are one of the lowest in Western Europe. Way less expensive than New York or Tokyo, Paris offers prices equivalent to that of Dublin and Milan, and slightly above Francfort market prices. As for London, the prices are two to three times higher than that of the French capital.
Prices in Paris and the surrounding areas do not represent that of the rest of France, of course, as they are lower elswhere.
Paris is also the number one real estate investment market among European capitals.
Cost of labour
Contrary to generally accepted opinion, France is well positioned in the area of labour costs, especially in comparison to its direct competitors Germany and the United Kingdom. Various social security contribution exemptions levy the cost of manpower for an employer.
More specifically, given the lower salaries, the total cost of labour in the industrial sector (reference sector for international comparisons) is one of the lowest in the fifteen EU common market countries. It is almost the same as that of the United States.
These many advantages make Paris a very attractive city. Indeed, the French capital is positioned in second place worldwide for the set-up of corporate head offices, with 27 Fortune Global 500 businesses, ahead of New York, London and Beijing
Cost of living
In comparison with its worldwide competitors, the French capital benefits from a clear international influence and reasonable living costs. Less expensive than Zurich, Tokyo and Milan among others, the French capital has a 25 point difference in the cost of living index, with London, which comes in at second, the most expensive city in the world.
Businesses that have set-up their European headquarters in Fra
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