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fonds de commerce

English translation: transfer of a business as a going concern

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
French term or phrase:cession d'un fonds de commerce
English translation:transfer of a business as a going concern
Entered by: Nikki Scott-Despaigne
Options:
- Contribute to this entry
- Include in personal glossary

10:15 May 25, 2001
French to English translations [PRO]
Law/Patents
French term or phrase: fonds de commerce
This is a long story about taxation. Dict. gives "business (as a going concern)" and its simply not acceptable in the register.
Ex: "Vous entendez soumettre au droit de mutation applicable aux cessions de fonds de commerce, « l’acquisition » par ABC SAS « du fonds de commerce » de la société XYZ SARL."
Another: "Pour les raisons que nous évoquons ci-après, nous contestons la qualification de cession de fonds de commerce."
You can see that the expression is critical, since the case depends on HOW WE NOW DEFINE FONDS DE COMMERCE!
Parrot
Spain
Local time: 03:56
transfer of a business as a going concern
Explanation:
Gill has touched upon an important point. The complete term here is “cession de fonds de commerce”. What then struck me was that throughout my legal studies and training, we referred to “transfer” rather than “sale” (sometimes even “transfer by sale”, as it can be “by assignment” also for example). Bingo, the GDT confirmed transfer for cession. Then a quick search produced "transfer of a business as a going concern" the example provided relates to VAT but the definition is there.

http://www.hmce.gov.uk/notices/700-09.htm

Notice 700/9
Transfer of a business as a going concern
November 1996
…/…

1.2 What does "transferring a business as a going concern" (TOGC) mean?
This notice explains the VAT position if you are selling your business or part of it. In certain circumstances special VAT rules apply and the sale will not be treated as a supply for VAT purposes. The sales affected will be those where a business is sold as a going concern or where the sale is of part of the business capable of separate operation.
The transfer can be to a person with no previous interest in the business, or it can be simply a change of legal entity, for example, when a sole proprietor forms a limited company, or takes someone into partnership. There is no transfer of a business as a going concern when ownership changes merely through the sale of the shares in a company or through changes in the constitution of a partnership.
The assets of a business can include stock in trade, machinery, goodwill, premises and fixtures and fittings.
If you are registered for VAT but you have not yet made taxable supplies, the transfer of your business might not be the transfer of a going concern.
For VAT purposes a VAT group registration is a single taxable person.



Next problem, “fonds de commerce ». There again, I would go along with Gillian. Strictly speaking, business includes goodwill.
droit 1 / 6
droit civil



transferTerme(s) apparenté(s)cession cession n. f.

Déf. :Transmission de droits et de biens entre des personnes physiques ou morales.
Note :Par exemple, cession de fonds de commerce, de bail, de créance.La cession est faite à titre onéreux ou à titre gratuit.

businessSyn.commercial enterprise fonds de commerce n. m.

Déf. :Ensemble de biens corporels et incorporels qu'une personne physique ou morale regroupe en vue d'une activité commerciale ou industrielle.
Note :Les biens corporels sont notamment le matériel d'exploitation et les marchandises tandis que les biens incorporels sont, entre autres, la clientèle, le droit au bail, le nom commercial, le sigle distinctif.Ne pas confondre le fonds de commerce avec le fonds commercial. Le terme « fonds de commerce » désigne une universalité regroupant l'ensemble des éléments (corporels et incorporels) dont une personne (physique ou morale) réalise la conjonction en vue d'une activité commerciale. Il peut être acquis ou créé par l'entreprise. Le terme « fonds commercial » désigne les éléments incorporels du fonds de commerce (y compris le droit au bail) qui ne font pas l'objet d'une évaluation et d'une comptabilisation séparées au bilan et qui concourent au maintien ou au développement du potentiel d'activité de l'entreprise. (R)


Selected response from:

Nikki Scott-Despaigne
Local time: 03:56
Grading comment
Thanks for your help in both my questions, Nikki, I DID have this phrase as a temporary patch in my translation, but the elegance of the original (which takes up 21 pages in fine print) gave me a complex. Please feel free to mail me if you get anything more inspired!
4 KudoZ points were awarded for this answer

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Summary of answers provided
natransfer of a business as a going concern
Nikki Scott-Despaigne
nabusinessBuzzy
nabusiness
Gillian Hargreaves
nagoodwillCarole Reade-Kentros


Discussion entries: 1





  

Answers


16 mins
goodwill


Explanation:
Terminology
Office
Terminology Office, European Commission,


Collection
Finances

Subject
accountancy & commercial arithmetics

theories of finance and taxation

French

fonds de commerce

Definition
a)notion abstraite de comptabilité qui regroupe
l'ensemble des éléments incorporels d'une
entreprise;
b)compte de régularisation du bilan,créé
lorsque la société-mère d'un groupe a acquis
des actions d'une société filiale sur la base
d'un cours de marché,alors que les actifs
correspondants sont portés au bilan de la
filiale seulement pour la valeur de leur coût
initial moins les amortissements

Reference
Kissas,C.,Termin.des marchés financiers,1990
[VE1,DF];
Eurovoc,Edition 2,1987 [VE1]


English
goodwill

Definition
the value that a business has over and above
the stock in trade and the money invested in it

Reference
Capital Market Terminology,C.Kissas,1990
[VE];
EUROVOC,Edition 2,1987 [VE,DF]

The definition given for the French is a bit complicated !
However, reading the English definition, I feel it is what you're looking for,
at least it is my notion of "fonds de commerce" as I understand it in French.
It seems also to relate well with your context.
Hope it helps !



    Reference: http://europa.eu.int/eurodicautom/
Carole Reade-Kentros
Local time: 04:56
PRO pts in pair: 90
Grading comment
We're talking about a % tax on the transfer of goodwill?!

Peer comments on this answer (and responses from the answerer)
Nikki Scott-Despaigne: goodwill is part of it but restrictive
5 hrs
Login to enter a peer comment (or grade)
The asker has declined this answer
Comment: We're talking about a % tax on the transfer of goodwill?!

56 mins
business


Explanation:
Although goodwill is a perfectly acceptable alternative, I would have thought that you could still use "business", i.e. translating the whole phrase "cession de fonds de commerce" as "selling a business".


    Own experience
Gillian Hargreaves
Local time: 02:56
Native speaker of: Native in EnglishEnglish
PRO pts in pair: 575
Grading comment
I've tried this. It's a question of elegance of register.

Peer comments on this answer (and responses from the answerer)
Nikki Scott-Despaigne: closer but still missing something
4 hrs
Login to enter a peer comment (or grade)
The asker has declined this answer
Comment: I've tried this. It's a question of elegance of register.

2 hrs
business


Explanation:
I'd also stick with business, and possibly keep the French expression in brackets if you think that's helpful (or possibly necessary to avoid any ambiguity). The dispute in question probably relates to the difference in tax rates as explained below (from the following website, but I don't know if it is still up to date):

http://www.cig.fr/ghigo/creationentreprise.html

c) La cession des parts de l'EURL (puis de la SARL qui s'y substituera — le cas échéant — après l'arrivée de nouveaux associés) entraînera l'exigibilité pour l'acquéreur du droit de 4,80 %, alors que la cession d'une entreprise individuelle exploitée directement est soumise au droit de cession de fonds de commerce au taux maximum de 11,4 %


In my experience, "Goodwill" tends to be used more to mean an accounting item, however when you're talking about selling a "fonds de commerce" then business would be the normal term.


    own knowledge + web search
Buzzy
Local time: 03:56
Native speaker of: Native in EnglishEnglish
PRO pts in pair: 377
Grading comment
I've tried, but I can't approximate the original register.
Login to enter a peer comment (or grade)
The asker has declined this answer
Comment: I've tried, but I can't approximate the original register.

5 hrs
transfer of a business as a going concern


Explanation:
Gill has touched upon an important point. The complete term here is “cession de fonds de commerce”. What then struck me was that throughout my legal studies and training, we referred to “transfer” rather than “sale” (sometimes even “transfer by sale”, as it can be “by assignment” also for example). Bingo, the GDT confirmed transfer for cession. Then a quick search produced "transfer of a business as a going concern" the example provided relates to VAT but the definition is there.

http://www.hmce.gov.uk/notices/700-09.htm

Notice 700/9
Transfer of a business as a going concern
November 1996
…/…

1.2 What does "transferring a business as a going concern" (TOGC) mean?
This notice explains the VAT position if you are selling your business or part of it. In certain circumstances special VAT rules apply and the sale will not be treated as a supply for VAT purposes. The sales affected will be those where a business is sold as a going concern or where the sale is of part of the business capable of separate operation.
The transfer can be to a person with no previous interest in the business, or it can be simply a change of legal entity, for example, when a sole proprietor forms a limited company, or takes someone into partnership. There is no transfer of a business as a going concern when ownership changes merely through the sale of the shares in a company or through changes in the constitution of a partnership.
The assets of a business can include stock in trade, machinery, goodwill, premises and fixtures and fittings.
If you are registered for VAT but you have not yet made taxable supplies, the transfer of your business might not be the transfer of a going concern.
For VAT purposes a VAT group registration is a single taxable person.



Next problem, “fonds de commerce ». There again, I would go along with Gillian. Strictly speaking, business includes goodwill.
droit 1 / 6
droit civil



transferTerme(s) apparenté(s)cession cession n. f.

Déf. :Transmission de droits et de biens entre des personnes physiques ou morales.
Note :Par exemple, cession de fonds de commerce, de bail, de créance.La cession est faite à titre onéreux ou à titre gratuit.

businessSyn.commercial enterprise fonds de commerce n. m.

Déf. :Ensemble de biens corporels et incorporels qu'une personne physique ou morale regroupe en vue d'une activité commerciale ou industrielle.
Note :Les biens corporels sont notamment le matériel d'exploitation et les marchandises tandis que les biens incorporels sont, entre autres, la clientèle, le droit au bail, le nom commercial, le sigle distinctif.Ne pas confondre le fonds de commerce avec le fonds commercial. Le terme « fonds de commerce » désigne une universalité regroupant l'ensemble des éléments (corporels et incorporels) dont une personne (physique ou morale) réalise la conjonction en vue d'une activité commerciale. Il peut être acquis ou créé par l'entreprise. Le terme « fonds commercial » désigne les éléments incorporels du fonds de commerce (y compris le droit au bail) qui ne font pas l'objet d'une évaluation et d'une comptabilisation séparées au bilan et qui concourent au maintien ou au développement du potentiel d'activité de l'entreprise. (R)





    professional training & experience, www.hmce.gov.uk/notices/700-09.htm
    Reference: http://www.granddictionnaire.com
Nikki Scott-Despaigne
Local time: 03:56
Native speaker of: Native in EnglishEnglish
PRO pts in pair: 4431
Grading comment
Thanks for your help in both my questions, Nikki, I DID have this phrase as a temporary patch in my translation, but the elegance of the original (which takes up 21 pages in fine print) gave me a complex. Please feel free to mail me if you get anything more inspired!
Login to enter a peer comment (or grade)




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