Regulations which govern the leasing business in France are mainly included in the French Code Civile and the Code Monétaire et Financier (Monetary & Finance Code). Leasing is also affected by Code du Commerce, French Accounting Principles and tax laws.

To begin with we should remind you that the word “leasing” has two meanings in French: “crédit-bail” or “location”. Crédit-bail is a lease agreement with a purchase-option. As such, crédit-bail activity is mainly regulated by a law passed on July 2, 1966: Code Monétaire & Financier. Location (financière or opérationelle) is a straightforward lease without any purchase option. Location is mainly regulated by the Code Civil.

As in other EU countries, where new balance sheet accounting standards (e.g. IAS/IFRS and US-GAAP) are required, two definitions are becoming important: "finance leasing” and "operating leasing." The first is roughly equivalent to full amortisation. The second is roughly equivalent to partial amortisation. Characteristic of operating leasing, however, is that it involves very short agreement periods. The leasing company assumes full risk for the leased goods and must ensure that they are returned after expiry of the agreement.

Legal regulations require a good deal of know-how, particularly when it comes to drawing up leasing agreements for tax, balance sheet accounting and civil law purposes. Deutsche Leasing France - with more than ten years experience in the country - has this know-how. We are well versed in all facets of leasing and can offer you a wide range of effective, tailor-made solutions.