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France to woo foreigners with ‘entrepreneur visas’

France's president moved to woo entrepreneurs and small business owners on Monday by announcing a raft of proposals to win back their confidence. Among the new measures will be an "entrepreneurs visa" for foreign investors.

France to woo foreigners with 'entrepreneur visas'
Hollande spots something in the sky outside the Elysée Palace. Photo: Bertrand Langlois/AFP

French President Francois Hollande on Monday announced a series of measures aimed at winning back the confidence of small business owners needed to kickstart the country's struggling economy.

Speaking to a group of 300 entrepreneurs in Paris, Hollande also laid out proposals to attract foreign investment into a country threatened with recession and suffering from dogged unemployment, and to help French firms expand abroad.

The most-awaited reform concerned the capital gains tax on sales of company stakes or entire firms, which the government had wanted to hike as part of plans to reduce the public deficit, before backtracking last year amid a revolt by entrepreneurs.

Hollande said Monday that business owners would still have to pay the tax but would be able to get up to 85 percent exemptions if they had owned or held a stake for at least eight years, or smaller rebates for shorter periods.

He also announced a new "entrepreneur visa" to be created for foreigners seeking to set up an innovative start-up in France if they invest a "sufficient amount" of money.

The French leader also said that he would like to set up services in some parts of the world – beginning with the United States and Asia – to help small and medium-sized enterprises (SMEs) export their good and services abroad.

Tax advantages could be granted to large companies that invested in smaller start-ups that sought to expand abroad.

Fleur Pellerin, junior minister for SMEs, told BFMTV that the package of measures reflected "the way in which we perceive the role that entrepreneurs must play in our society for the success of our country."

Among other measures, Hollande said the French Public Investment Bank – set up last year to help innovative SMEs – would create a new financing tool
for setting up firms in underprivileged areas.

The measures were broadly welcomed by business owners.

Jean-Francois Roubaud, head of the CGPME, an employers's organisation that represents SMEs, said the measures were "completely acceptable and there will be unanimous satisfaction."

The package of measures are to be integrated into a draft 2014 budget unveiled in September by the government, with the aim of coming into force in January 2014.

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VISAS

EXPLAINED: What is France’s ‘working holiday’ visa?

Depending on your age and nationality, you may be entitled to apply for a one-off ‘working holiday’ visa that allows you to live and work in France for a year.

EXPLAINED: What is France’s ‘working holiday’ visa?

For some people, three months visa-free in France might be enough, while other lucky souls are able to self-finance a longer trip.

But there is another option – a visa that allows you to spend a year seeing France, and earn some cash along the way. It is known as the vacances-travail (working holiday) visa.

Who for?

First things first, this visa is not available to everyone. Brits and Americans, for example, do not qualify.

In fact only citizens of 16 non-European countries may apply for this particular visa: Australia, Argentina, Brazil, Canada, Chile, Colombia, South Korea, Ecuador, Japan, New Zealand, Hong Kong, Mexico, Peru, Russia, Taiwan, Uruguay.

Meanwhile EU citizens don’t require a visa to live or work in France.

READ ALSO EXPLAINED: What type of French visa do you need?

There is also an age limit for applicants. Residents of all but three countries on the list must be between the ages of 18 and 30 at the time of their application for the working holiday visa. Citizens of Argentina, Australia and Canada can apply between the ages of 18 and 35.

How does it work?

The visa is a one-year one and in most circumstances it cannot be extended beyond its one-year limit.

It is not, therefore, suitable for people planning a long-term move to France – it’s intended to help young people spend some time here and pay their own way as they go.

As the name suggests, you can work while on the one-year visa.

In reality, these jobs are mostly short-term, casual or seasonal work – since employers looking to fill a permanent position will be unlikely to take a chance on a short-term visa such as this.

Some of the common jobs that holders of these visas do include bar work, seasonal work on farms, summer tourist employment or working the ski season.

Once in France, it’s up to you to decide how much of your stay will be vacances (holiday) and how much travail (work), there is no set amount of work.

How to get one?

The working holiday visa works like every other visa type.

Applications have to be submitted to the relevant visa centre in their home country, before travelling to France.

However Australian, Canadian and Colombian nationals living overseas can apply via the French consular service in their country of residence.

You need to wait until the visa arrives before travelling to France, and it cannot be linked to any other visa type. In most circumstances you would not be able to stay in France for longer than a year, or switch to another visa type – although exceptions can be made for force majeure (eg illness or other circumstances outside your control).

Find more details here.

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