CHAPTER I: Organisation and operation

Articles in this section · 14

Article L5721-6-1

French General Code of Local AuthoritiesIn force

Updated 6 Nov 2023

I.- The transfer of powers to a public-private association automatically entails the application to all the public property, facilities and services necessary for their exercise, as well as to all the rights and obligations attached to them on the date of the transfer:

1° When the association is created: of the provisions of the first three paragraphs of Article L. 1321-1, the first two paragraphs of l'article L. 1321-2 and of articles L. 1321-3, L. 1321-4 and L. 1321-5.

However, when the public-private association is responsible for economic activity zones, the financial and asset conditions for the transfer of the property required to exercise this responsibility are decided by agreement between the local authorities and the public establishments for inter-communal cooperation that participate in the creation of the association. The assignment of personnel is decided under the same conditions.

The mixed syndicate is automatically substituted, on the date of the transfer of competencies, for the territorial authorities and public establishments of inter-municipal cooperation in all their deliberations and all their acts. Contracts are performed under the previous conditions until they expire, unless the parties agree otherwise. The substitution of a legal entity for contracts concluded by local authorities and establishments does not give rise to any right to termination or compensation for the co-contractor. The local authority or establishment transferring the competence informs the co-contracting parties of this substitution;

2° In the event of a subsequent extension of the syndicate's competences or perimeter: of the provisions of the first and last paragraphs of 1° of this article.

However, when the public-private association has jurisdiction over economic activity zones, the financial and asset conditions for the transfer of the real estate required to exercise this jurisdiction are decided under the conditions laid down by the articles of association of the public-private association and, failing this, by joint deliberations of the committee of the public-private association and the deliberative bodies of the member communities and public establishments for inter-communal cooperation. The assignment of personnel is decided under the same conditions.

II .- When a public-private association is responsible for managing the public river domain, transfers of ownership of the public river domain to the public-private association are made free of charge and do not give rise to the payment of any compensation, duty, tax, contribution provided for in Article 879 of the General Tax Code or fees. The constituent agreement of the public-private partnership provides for the conditions of withdrawal and dissolution in accordance with the principles set out in articles L. 5721-6-2, L. 5721-7 and L. 5721-7-1 of this code, with the principles of 1° of article L. 5211-25-1 also applying to assets transferred in full ownership to the public-private partnership. Article L. 3113-1 of the General Code on the Ownership of Public Persons does not apply to the public river domain transferred in application of the present 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

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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