Section 2: Special provisions for certain transfers

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Article L1614-8-1

French General Code of Local AuthoritiesIn force

Updated 8 Nov 2023

As from 1 January 2002, the costs transferred to the regions as a result of the transfer of powers provided for in Article 21-1 of the loi n° 82-1153 du 30 décembre 1982 d'orientation des transports intérieurs' are compensated under the conditions set by the articles L. 1614-1 to L. 1614-3, subject to the provisions of this article.

The compensation for the transfer of competences mentioned in the previous paragraph, taken into account in the general decentralisation grant allocated to the regions, is made up of:

- the amount of the contribution for the operation of the transferred services;

- the amount of the additional grant required to renew the fleet of rolling stock assigned to the transferred services;

- the amount of the grant corresponding to the compensation for the social fares implemented at the request of the State.

For 2002, the amount of this compensation is established, as regards the part corresponding to the contribution for the operation of the transferred services, on the basis of the year 2000. The total amount of this compensation is revalued by applying the growth rates of the global operating allowance set for 2001 and 2002.

The amount of this compensation is established for each region, for 2002, by joint order of the minister responsible for the interior, the minister responsible for the budget and the minister responsible for transport after consultation with the region.

The part of the compensation corresponding to the contribution for the operation of the transferred services will be revised, for the 2003 allocation, to take account of the impact of the new accounting rules implemented by SNCF Voyageurs on the costs of the regional rail service. This revision will be made on the basis of services for the year 2000 and will be recorded in the form defined in the previous paragraph. The part of the compensation corresponding to the contribution for the operation of the transferred services is calculated exclusive of value added tax.

Any legislative or regulatory provision with a financial impact on the costs transferred pursuant to article 21-1 of the aforementioned law no. 82-1153 of 30 December 1982 shall give rise to a revision under the conditions provided for in articles L. 1614-1 to L. 1614-3. The purpose of this revision is to fully compensate the additional burden for the region resulting from these provisions.

Any modification of social tariffs decided by the State, resulting in a new burden for the regions, gives rise to a revision, in due proportion, of the amount of the contribution referred to in the third paragraph.

From 1 January 2016, when a region is formed by grouping together several regions, in accordance with Article 1 of Law no. 2015-29 of 16 January 2015 on the delimitation of regions, regional and departmental elections and amending the electoral calendar, the amount of the general decentralisation grant paid to it pursuant to this article corresponds to the sum of the amounts paid to the regions to which it succeeds under the conditions applicable prior to the grouping.

A Conseil d'Etat decree specifies the terms and conditions for the application of this article.

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

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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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