Section 1: Special allocation relating to the conditions of exercise of local mandates.

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Article R2335-1

French General Code of Local AuthoritiesIn force

Updated 5 Nov 2023

I.-In metropolitan France, the special allocation provided for in article L. 2335-1 is made up of two parts and two increases:

1° The first part is allocated to municipalities with fewer than 1,000 inhabitants whose per capita financial potential, as defined in article L. 2334-4, is less than the average per capita financial potential of municipalities with fewer than 1,000 inhabitants, increased by 25%;

2° A second part is allocated in addition to that mentioned in 1°:

a) To municipalities benefiting from the first part whose population, as it results from the last census, is less than 200 inhabitants and whose per capita financial potential, as defined in article L. 2334-4, is less than the average per capita financial potential of municipalities with fewer than 1,000 inhabitants, increased by 25%. For these municipalities, the amount of the allocation paid under this second part is equal to the amount paid under the first part;

b) Municipalities receiving the first part whose population, as determined by the last census, is between 200 and 500 inhabitants and whose per capita financial potential, as defined in article L. 2334-4, is less than the average per capita financial potential of municipalities with fewer than 1,000 inhabitants, increased by 25%. For these municipalities, the amount of the allocation under the second part is equal to 50% of the amount paid under the first part;

3° The first increase corresponding to the compensation mentioned in the second paragraph of article L. 2123-18-2 is allocated to municipalities with a population of less than 3,500 inhabitants, according to the scale defined in article D. 2335-1-1 ;

4° The second increase corresponding to the compensation mentioned in the third paragraph of Article L. 2123-34 and the last paragraph of Article L. 2123-35 is paid to municipalities with a population of less than 3,500 inhabitants, according to the scale defined in Article D. 2335-1-1.

II.-For the application of this article:

1° The population taken into account is, unless otherwise stated, that defined in article L. 2334-2;

2° The allocation paid under the first part to each beneficiary commune in mainland and overseas France is equal to the ratio between the amount of the special allocation provided for this purpose, up to the amount mentioned in article 82 of finance law no. 2018-1317 of 28 December 2018 for 2019, and the number of beneficiary communes in mainland and overseas France ;

3° For the application of 3° and 4° of I of this article, the population used is the total population, obtained by adding the municipal population and the population counted separately, as taken into account at the time of the last general renewal of the municipal councils. By way of derogation, a new commune may receive a sum in respect of these two increases from the first calendar year following its creation. In this case and until the next general renewal of the municipal councils following this creation, the total population taken into account for the application of this paragraph to this new commune is the sum of the respective total populations of the former communes on the date of creation of the new commune.

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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