Doing Business In (Insert Country Name Here) - Department of ...

Agent:This category covers commercial agents and those acting as agents but not fulfilling therequisites for commercial agent status. Unlike distributors, agents do not actuallypurchase goods for resale; instead, they match up buyers and sellers on a commissionbasis. All agents exercise their activities in an independent manner, and their principalsare exempt from payment of payroll taxes. Agents assume their own fiscal charges(business license tax and value-added tax) and social charges (health insurance, socialsecurity and retirement/pension benefits).Commercial Agent:Agents with a written contract have the status of commercial agents (agentscommerciaux) if they exercise their activity as a sustained independent profession andfulfill the following conditions:- Do not have a written employment contract;- Negotiate sales and purchases on behalf of producers, manufacturers, or dealers;- Are registered with the Tribunal of Commerce as commercial agents.A commercial agent is independent and free to act on the behalf of any other firm.However, in the case where the agent wishes to represent one of his or her principal'scompetitors, consent of the principal must first be secured.The principal may justifiably terminate the commercial agent contract only if the agentshows substantial deficiency in carrying out his or her obligations. Otherwise, contracttermination gives the agent a right to indemnification, often equal to two years'commissions, in absence of a termination date in the agreement.Other agents: Persons who do not fulfill all the requirements for commercial agency, andwho are not in a position of subordination to the company they represent, are consideredagents. A notarized act or private agreement can effect authorization of an agent.Either party may terminate the agency agreement at will, but the non-terminating partyhas a right to indemnification of losses.Salaried Representatives:Unlike agents, salaried representatives have employment contracts. They and theiremployers share the burden of payroll taxes contributing to social security,unemployment compensation, and retirement/pension plans.Statutory Representatives:Persons are considered statutory representatives if they exercise their activity as asustained, independent profession and fulfill the following conditions:- Act as sales representative for the account of one or more employers;- Abstain from executing commercial operations on their own behalf;- Institute mutual commitments with employers on the nature of goods or servicesoffered for sale, the region of activity or the category of clients, and the rate ofcompensation.2/18/2010 Country Commercial Guide for France 8INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICEAND U.S. DEPARTMENT OF STATE, © 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.