Subsection 5: Penalties for non-compliance with the obligation to declare and provide information

Articles in this section · 3

Article L7122-16

French Labour CodeIn force

Updated 5 Nov 2023

I.-When it is observed that a person, whether a natural person or a legal entity, is engaged in the activity of performing arts entrepreneur without holding a valid activity declaration receipt as referred to in article L. 7122-3, or that it has not fulfilled the obligations set out in the third paragraph of I of article L. 7122-4, or in 1° or 2° of article L. 7122-6, or does not hold a qualification of equivalent effect referred to in article L. 7122-5, the competent administrative authority shall inform the person concerned in writing of the penalty envisaged, informing him of the breach of which he is accused and inviting him to submit his observations, within a period set by regulation.

II - At the end of this period, the competent administrative authority may, by reasoned decision:

1° Impose an administrative fine of a maximum of €1,500 for a natural person and a maximum of €7,500 for a legal entity;

2° Impose a penalty on the fine mentioned in 1° in the event of non-payment of the fine. The penalty ceases to apply on the date on which the situation is remedied;

3° Order the closure, for a period of up to one year, of the establishment or establishments of the entrepreneur that were used to commit the offence.

III - The maximum fine is doubled in the event of a further breach of the same nature within a period of two years from the date of notification of the fine for a previous breach of the same nature.

IV - Subject to the confidentiality protected by law, the penalties mentioned in this article may be accompanied by a publicity measure which does not have to be specifically justified.

V -To set the amount of the fine or the duration of the closure of an establishment, the competent administrative authority will take into account the circumstances and seriousness of the breach, the behaviour of the offender, in particular his good faith, as well as his resources and expenses.

VI-The decision is taken on the basis of a report of the breach sent to the competent administrative authority under conditions laid down by regulation.

VII-The limitation period for action by the competent administrative authority to impose an administrative fine or close an establishment is two years from the date on which the breach was committed.

VIII -The fines and periodic penalty payments mentioned in 1° and 2° of II are recovered by the Treasury.

Mariela Petrova

Need help applying this article to your situation?

A registered French Lawyer explains what applies to your business — in English, fixed fee.

within 48h

Fixed Fee

Talk to a lawyer
Common Questions

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

English · French · Russian

Ready When You Are

Talk To A Corporate
Lawyer In France.

A 20–30 minute call, in English, to scope the engagement. No obligation, no preliminary fee. You will leave the call with a clear view of what the work will cover and what it will cost.

First EngagementFixed Fee

Talk to a French lawyer.

Reply within 24 hours.

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

Continue Reading

Related corporate services in France

01 / Setup

Setting up a French company

Choose between SAS, SARL, SA or SCI — and structure your first French entity around how you actually plan to operate.

Read More
02 / Operating

French commercial contracts

Distribution, agency, supply, services and IP licences — drafted around the protections French law actually gives.

Read More
03 / Disputes

Business disputes & litigation

Shareholder conflicts, commercial breaches and pre-litigation strategy — handled by the same team that knows the file.

Read More