We may earn commissions if you use the recommended services on this site.  

France Strengthens Foreign Investment Controls on Local Firms

Latest Business News

France Strengthens Controls on Foreign Investment in Local Firms

French Finance Minister Bruno Le Maire has announced plans to reinforce controls on foreign investment in French businesses to safeguard strategic industries. The scope of sectors covered by these controls will be expanded to include companies involved in the extraction and processing of critical raw materials. Additionally, controls will be extended to the French branches of foreign firms to prevent circumvention of checks. France intends to maintain a 10% threshold, reduced from 25%, at which controls are triggered for non-European entities investing in strategic companies. In 2022, 325 dossiers were examined, a significant increase from 137 in 2017. Minister Le Maire emphasized the need to protect technologies, know-how, and industries from potential exploitation and theft. This move aligns with French President Emmanuel Macron's call for Europe to develop more autonomy and enhance regional production capabilities. Similar measures have been taken by other European countries to safeguard national security and protect knowledge-intensive industries.

Implications of France's Investment Controls for New Businesses

The decision by France to tighten controls on foreign investment in local firms could have far-reaching implications for new businesses, particularly those in strategic industries. The expanded scope of sectors covered by these controls and the lowering of the threshold for triggering controls on non-European entities could limit the avenues for foreign investment in new businesses.

Challenges and Opportunities

On one hand, these measures could pose challenges for new businesses seeking foreign capital for growth and expansion. The stricter controls could deter potential foreign investors, making it harder for new businesses to attract necessary funding. On the other hand, this move could also create opportunities for new businesses. The emphasis on protecting technologies, know-how, and industries could spur increased domestic investment in these sectors, benefiting local startups and businesses.

Aligning with European Autonomy

Furthermore, these controls align with a broader European push for greater autonomy and regional production capabilities. For new businesses, this could mean increased support and incentives for developing locally sourced and produced technologies and products. In conclusion, while France's strengthened controls on foreign investment could pose challenges for new businesses, they also present opportunities for growth and innovation within a more autonomous and locally-focused European economy.
Story First Published at: https://financialpost.com/pmn/business-pmn/france-to-toughen-controls-on-foreign-investment-in-local-firms
Brought to you by BusinessFormation.io
Know Your State's Registered Agent Requirements: What is a Registered Agent
Learn How To Create An LLC: What Is An LLC and How To Start an LLC Online
Business Formation Services: View Top 3 Online LLC Filing Companies

LLC Filing & Registered Agent Services

Compare Online LLC Filing Services Today

We work with the market leaders in business formation and registered agent services.

Getting started is simple and inexpensive. Form your business today & secure your brand name before someone beats you to it! Click below to view the Top 3 Best LLC and registered agent service providers.
View Top 3 Providers Now

Filing An LLC Can Be Complicated

Streamline Your LLC Filing Online for $39

Northwest Registered Agent is the best-rated service for first time filers.

Get professional LLC formation & registered agent services for only $39 + state filing fee. This offers includes your full LLC setup, plus a private business address, lifetime support, and more.

Trusted by Millions. Save 82% Today.