This Monday, 8 May 2017, CONFAES delved into the importance of drafting a contract, with the help of professionals, that avoids future problems if the relationship with French commercial agents is terminated. The option of exporting directly to the country by setting up a subsidiary in the form of a limited company was also explained.
More and more companies from Salamanca are deciding to export their products abroad and France is a preferred destination as the province’s largest trading partner. For this reason, the Confaes Confederation hosted a new information event on internationalisation for SMEs, this time focused on France, on Monday 8 May, entitled ‘Selling in France through distribution contracts or through an S.L.’.
Organised by Aránzazu Abogados, with the support of the Salamanca Customs Office-Citycesa and the Salamanca employers’ association, the session answered the questions of business owners who want to export to France or who are already exporting through distributors or commercial agents in that country.
It also delved into the importance of drafting a contract, with the help of professionals, that avoids future problems if the relationship with French commercial agents is terminated. The option of exporting directly to the country by setting up a subsidiary in the form of a limited company was also explained.
In the words of Arantxa Cagigal, partner of Aránzazu Abogados, Spanish companies in France “sometimes run into problems when exporting to France, especially when they have to face claims arising from disputes with former distributors in the country, whose law tends to protect them more than in Spain”, she recalls.
The recommendation of lawyers specialised in international law is that Salamanca business owners “understand the importance of being well advised when they decide to open up to new markets, especially in the careful drafting of the contracts and clauses that will bind their company to the country to which they export”, she states.
Another possibility for companies whose brand or product is already established in the foreign country is to set up a limited company (SARL in France) that would act as a subsidiary of the Spanish company and avoid resorting to commission agents.
“Sometimes it is worthwhile for companies to set up a limited company to sell directly in the country. It is a simpler and cheaper formula than setting one up in Spain, depending on the business opportunity attached to it”, she concludes.