SINGLE CHAPTER: Terms and conditions of transfers of competence

Articles in this section · 8

D6371-1D6371-2D6371-3D6371-4D6371-5D6371-6D6371-7D6371-8

Article D6371-1

French General Code of Local AuthoritiesIn force
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Updated 4 Nov 2023

The additional financial burdens resulting for the collectivity of Saint-Martin from the new powers attributed to it by Book III of Part Six (legislative) shall be the subject of financial compensation, through the transfer of taxes from the State, the department or region of Guadeloupe, the commune of Saint-Martin and through the State allocations mentioned in Article LO 6371-5.

For each competence transferred, the resources allocated are equivalent to the right to compensation calculated on the basis of the charges transferred by the State, the Regional Council of Guadeloupe, the General Council of Guadeloupe or the municipality of Saint-Martin, in respect of each competence transferred.

The right to compensation for the investment costs transferred is equal to the average of updated expenditure, excluding tax and excluding assistance funds, recorded over a period of ten years prior to 2007, with the exception of roads for which the period taken into account to determine the right to compensation is set at five years. The expenditure taken into account to determine the right to compensation for these expenses is updated according to the price index of gross fixed capital formation of general government, as recorded on the date of the transfers.

The right to compensation for the operating expenses transferred is equal to the expenditure recorded in 2006.

The expenditure transferred by the department of Guadeloupe, the region of Guadeloupe and the municipality of Saint-Martin is calculated on the basis of the expenditure incurred in respect of each competence transferred appearing in the respective administrative accounts of each local authority.

When, during the reference period taken into account for the calculation of the right to compensation, the competence is exercised by the State and a territorial authority or by several territorial authorities, the right to compensation is equal to the sum of the expenditure incurred in respect of the competences transferred, during this period.

Mariela Petrova

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Working with a corporate lawyer in France — Q&A

Any time a strategic decision changes how the company is owned, governed or contractually bound — incorporation, fundraising, M&A, restructuring, shareholder agreements, or major commercial contracts. Earlier engagement always costs less than later remediation.

A notary (notaire) is a public officer who authenticates specific deeds (mainly real-estate transfers and certain family-law acts). A corporate lawyer (avocat) advises on strategy, negotiates and drafts company documents, and represents you in disputes. The two roles complement rather than overlap.

Yes — most of our clients are foreign suppliers, investors or holding entities. We bridge the gap between French law and your home jurisdiction's expectations and deliver everything bilingually.

The SAS (Société par Actions Simplifiée) is the default choice for most international structures: flexible governance, single shareholder allowed, no minimum capital, and works cleanly with foreign holding entities. We assess SARL, SA, SCI on the merits when the situation calls for it.

Yes — communications with a French avocat are protected by the secret professionnel (Article 66-5 of the Law of 31 December 1971). This protection is broader than the common-law attorney-client privilege and applies to written and oral exchanges.

We work on fixed fees for clearly scoped engagements (incorporation, contract drafting, audits) and on monthly retainers for ongoing advisory. Hourly billing is the exception, not the default. You always know the cost before work starts.

Typical timeline is 2–3 weeks from KYC kick-off to RCS registration, assuming standard documentation. Holding-company structures, foreign-shareholder identification or in-kind contributions can extend this — we flag the gating items at the first meeting.

Absolutely. We routinely coordinate with your in-house counsel, expert-comptable or notaire — pragmatic collaboration is the norm, not the exception. We send them everything they need to do their part without duplicating work.

Mariela Petrova

Mariela Petrova

Avocate au Barreau de Paris

Toque #C2396

15+ Years In Corporate Practice

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Communications protected by professional secrecy — secret professionnel de l'avocat, Article 66-5 of the Law of 31 December 1971.

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