Set Up a French Business for Rental and Leasing Activities

Automotive is one of the most important industries in France, as it has a significant contribution to the economy. With numerous local factories, but also with production facilities in other European and Asian countries, France is also home to several international automobile brands; therefore, it is no surprise that investors come to open businesses in the automotive industry here.

Those who want to open company in the automotive sector in France can set up a car dealership or a leasing company. Below, our company formation agents in France explain the requirements related to selling and leasing cars in this country.

Registering a business for the sale and leasing of automobiles in France

It should be mentioned from the beginning that such business implies significant costs, as the dealership must have a car fleet from where the customers can choose.

The types of businesses which can be established in the automobile sector in France are related to:

• - the sale of new vehicles;
• - the sale of used or second-hand cars;
• - car rental companies;
• - leasing companies.

The first step to open a business for rental and leasing activities is to register a company with the French Chamber of Commerce. Our company registration advisors in France can help with the incorporation of the chosen entity.

Regulations for selling, renting and leasing cars in France

The Ministry for Transport is the main authority regulating all activities related to selling, renting and leasing of automobiles on the French territory. However, these companies must also respect other laws, such as the Contract and the Insurance Law.

The Contract Law provides for the content of rental or leasing agreement which must contain information like:

• - the duration of the contract;
• - information on the company and the client;
• - the terms of the contract;
• - the hourly rate.

According to the Insurance Law, all automobiles whether rented or leased must have a valid insurance policy in order to be driven on public roads. It is the company’s duty to offer the client with the insurance policy of the rented car.

For full information on the regulations related to opening a business for rental and leasing activities in the automotive sector in France, please contact our local representatives.