Understanding the Different Business Aspects of Doing Business in India VS France

India is approximately 3,287,263 sq km, while France is 551,500 sq km, making France 16.78% the size of India. India and France differ geographically as well as in their culture, traditions, and political characteristics. Making a detailed comparison of India vs France, let us study business notions of both the countries.



India is a South Asian sovereign, socialist, secular, and democratic republic country. It ranks at seventh in the world’s largest countries, with a population of approximately 1.2 billion. On the other hand, France is a unitary country with a semi-presidential republic. In the European Union, France is the largest state and third largest country in Europe.

While India has documented Hindi and English as its official language, France has only documented French as its official language. It constricts the business companies to a specific region. Being versatile in both English and Hindi, businesses in India get a vast exposure over the seas with English as a communicating language.

So, while choosing a country amongst India vs France, choose the one which offers ease of communication language to you.



France is a developed country, whereas India is still in its developing phase. Hence, comparing the economy of both India vs France is of paramount importance. When comparing their economy, France has a better economy, but shortly it may exhaust its scope of growth and resources. India is still in its developing phase, which means it has abundant resources that are still not used to its fullest.

Being a developing country, India promotes foreign businesses in its land under Special Economic Zones (SEZ). Further, it is easier to get cheap skilled labourers along with abundant resources to explore. In contrast, France is a developed country with a small geographic lack in promoting its land for the MNCs and other business associations. Also, it is difficult to find cheap skilled labourers in a developed country like France.


Business Policy

Doing business anywhere in the world is stressful and difficult. To make your journey of business establishment simple, 3E Accounting helps you with legal advisories and government paperwork. France is an established country with tons of laws and bureaucracy. Starting a business in France is like landing in a lot of paperwork to deal with before you can start with your business.

On the other hand, India offers political stability to business investments. Investors in India can leverage India’s trade network with its regional and bilateral free trade agreement with many trade partners. India has a well-regulated finance system and offers a broad range of services. Businesses can also tap into their developed capital marketing as an alternate source of finance. The legal and judicial system in the country is robust and efficient. Companies can count on India’s rigorous enforcement of laws.



India offers a very competitive tax system and a commendable network of tax treaties. The introduction of the Direct Taxes Code in April 2012 has modified Indian taxes. Generally, a business set in an approved SEZ enjoys a 100% tax exemption for five years and a 50% exemption for the next ten years of profits derived from actual exports of goods and services. The tax holiday period starts from the year in which SEZ units begin to manufacture or produce or provide services.

On the other hand, France imposes a withholding tax on foreign companies and certain interest payments, rents, royalties, or management fees source within the country. In addition to income tax, a turnover tax (VAT) at the national level on goods and services provided in France.

There is a wide range of taxes in France that companies, investors, and individuals need to deal with a business. These taxations include corporate taxes, individual income tax, withholding taxes, international taxes, and more. Investors have to undergo much legal paperwork related to taxation.



Settling a comparison between India vs France, both countries have their advantages and challenges. On the development front, India has the upper hand due to its large population and its advancements in technology. But France is a developed country, but still has scope for further development in all sectors. The business culture comprises many laws and policies in France with strict measures, while in India, there is a flexible environment for establishing companies with warm and welcoming relations.

France is ahead of India as of now. But India is the second most populous nation. It favours business associations to strike for cheap labourers. The government of India supports its foreign traders and MNCs to promote Trade relations and employment in its country. On the other hand, France lacks cheap labourers and foreign trades in its native land. So, for startups, looking for less competition and more opportunities, India can be preferable.

Establishing a business in India becomes simple as a 3E Accounting firm helps business start-ups to set up. It takes account of all the government compliances along with bank account opening, issuing the license, and completing related document work. If you are planning to start a company, you can rely on 3E Accounting as a one-stop solution for all business needs.