Section 3: Overall operating grant

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Article L2113-22

French General Code of Local AuthoritiesIn force

Updated 8 Nov 2023

New communes are eligible for communal equalisation grants under the conditions of ordinary law, subject to Article L. 2334-22-2.

New communes that have benefited from the provisions of the second paragraph of this article in its wording resulting from Law no. 2010-1563 of 16 December 2010 on local authority reform and prior to Law no. 2017-1837 of 30 December 2017 on finance for 2018 shall receive in 2020, 2021 and 2022 allocations under the three fractions of the rural solidarity allocation at least equal to the allocations received in 2019 under each of these three fractions.

During the three years following 1 January of the year of their creation, new communes whose creation order was issued between 2 January 2019 and 1 January 2020 and which have a population of 150,000 inhabitants or less will receive allocations under the two fractions of the national equalisation allowance, the urban solidarity and social cohesion allocation and the three fractions of the rural solidarity allocation at least equal to the allocations received in respect of each of these allocations by the former communes in the year prior to the creation of the new commune.

During the three years following their creation, new communes whose creation order was issued as of the next general renewal of municipal councils following the promulgation of Finance Act no. 2019-1479 of 28 December 2019 for 2020 and grouping a population less than or equal to 150,000 inhabitants receive allocations under the two parts of the national equalisation allocation, the urban solidarity and social cohesion allocation and the three fractions of the rural solidarity allocation at least equal to the allocations received in respect of each of these allocations by the former communes in the year prior to the creation of the new commune.

During the three years following their creation, the new communes in the overseas departments for which the decree of creation was issued as of 2 January 2021 and which group together a population less than or equal to 150,000 inhabitants receive an allocation in respect of the sum of the allocations mentioned in II and III of article L. 2334-23-1 at least equal to the allocations received by the former communes the year preceding the creation of the new commune in respect of the sum of these two allocations. Where applicable, the adjustment is made under the conditions provided for in the second sentence of the penultimate paragraph of article L. 2334-23-2.

For the application of the ceilings provided for in articles L. 2334-14-1, L. 2334-21 and L. 2334-22, the amount received the year before the creation of the new commune corresponds to the sum of the allocations received by the former communes.

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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