Employer Of Record in France
We make it easy and painless to expand your business into France. Forget about dealing with local regulations, confusing tax laws and international payroll management. We take care of all that so you don't have to.
Accelerate your growth into France Compliantly and hassle-free
How we can help you expand in France
As your EOR in France we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary.
Your candidate is hired by a PEO in France provider in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. Shortly after, your new employee will be working for you, just like any other member of your team.
Expand to France with Serviap Global
Through our PEO and EOR services, you can hire qualified talent in your industry without the trouble of opening your own legal entity.
In just a few days, you can easily and safely build a presence in France being sure that your staff will be hired in compliance with labor and tax regulations.
Table of Contents
France Country Facts
The majority of the population of France is of Celtic, Italic, or German descent. France attracts over 89 million tourists every year, making it the most visited country in the world and among the most important nations in the western world as it plays a significant role in international affairs and former colonies. It is also Europe’s most important agricultural power. France is known for its cheeses, museums, trains, castles, fashion, and globalization.
French citizens enjoy a good standard of living and an amazing public transportation system, with mostly metro and rail networks in the city, and train with buses in more rural areas. The major cities are Paris, Marseille, Lyon, Toulouse, Bordeaux, and Nantes and they use the Euro as currency.
The French economy is strong and diversified. It is the seventh largest economy in the world and the third largest in Europe, after Germany and the United Kingdom. It is one of the top 10 exporters in the world for machinery, vehicles, aircrafts, pharmaceuticals, plastics, and perfumes. The service sector accounts for 78.8% of its GDP and the industrial sector for 19.5%.
France is also one of the largest recipients of foreign investments and also one of the top 10 innovative countries in the world and the leading agricultural power in Europe. The capital,Paris, ranked as the second most attractive city in the world for businesses and if that wasn’t attractive enough, Toulouse is the center of European aerospace.
France is home to more Global fortune 500 companies than any other European country. Its main exporting partners are Germany, Spain, Italy, the United States, Belgium, and the UK making this country an amazing investment opportunity.
Small and Medium Businesses
France has about 4 million small and medium enterprises (SMEs) which make up 99.9% of all enterprises and 64.1% of the total workforce. The majority of SMEs cover the media, communication, and information sector, after this it is wholesale or retail, personal services, professional services, art/entertainment, accommodations, and healthcare.
SMEs tend to outperform large firms which operate in the non-financial business economy and provide 55.8% of value added and 64.1% of employment.
The country has implemented a “think-small-first” philosophy which allows for policy makers and bankers to pay closer attention to budding innovation and to support SME activities. The government has also implemented a “right-to-make-mistakes” philosophy to abolish penalties for small companies who make mistakes in good faith
Starting a Business
It is easier to start a business in France than in most G20 countries. The whole process can be done in 4 to 5 days. To start, you will need to have a residence permit or be an EU resident. Once this is established, setting up the business itself is free. First decide the legal structure, whether you are a sole trader organization such as the Entrepreneur of Individual Limited Liability or a company such as Entreprise Unipersonelle à Responsibilité Limitée (EURL), or a Société à Responsibilité Limitée (ARL). Once you have decided, you need to check the name of your company with the “Institut National de la Propriété Industrielle” (INPI).
French banks are required to offer loaning assistance to new businesses, those loans are called “Prêts Bancaires aux Entreprises” (PBE). After you receive your loan, you will then need to register your business at the Centre de Formalités des Entreprises (CFE) and show proof of address. When you register the business, you will be given a unique identification number and you will be ready to begin.
|Payroll Cycle||Pay is made monthly|
|Minimum Wage||10.25 Euros|
|Wages||The median salary3.994 euros per month|
|13th Month Salary||An extra month of salary is given at the end of the year|
|Overtime||Overtime is paid with an additional 25% for 8 overtime hours and an additional 50% per hour, with no limit.|
Leaves of Absence
The Fair Work Act 2009 (Cth)
• Vacation leave:
5 weeks after a month of probationary work.
• Sick Leave:
Sick leave is paid by Social Security and can last up to three years.
• Maternity Leave:
16 weeks and can extend to 26 weeks when expecting a 3rd child.
• Paternity Leave:
28 days, not including the initial week of the birth.
6 weeks of leave is given.
3 days leave.
A wedding for yourself or child, time off after the occurrence of disability of a child, and three months to care for a relative or close friend.
France has a foreign tax credit to avoid double taxation. There has been a recent decrease in payroll charges paid by employers. There is a Research and Development tax credit of 30% and a tax reduction based on charitable contributions to the amount of 60%. The government does offer tax incentives and development subsidies to businesses working in an underdeveloped area.
France uses hydroelectricity as the primary source of renewable energy. Nuclear power, however, accounts for 72.3% of its total energy creation. Renewable energies account for 17.8% of total energy creation. Renewable energies are the fastest growing electricity generation source in France and have a goal of reaching 30% by 2030.
In general in France they emphasize education, leveled temperaments, skills, and reputation.
The cost of office space in Australia is low relative to major business centers internationally, while Australian cities consistently achieve top rankings for their quality of life.
- Be Reasonable
The French community values reason and argumentation as a way to come up with the best solutions.
- First Impressions
It is important to not appear to be too loud or overly friendly, at least on first encounter.
In the boardroom, all participants are asked to contribute to the discussion. Discussions are often spirited and direct. The main tone of these discussions always tends to be formal. The French business person will readily touch shoulders and arms to show favor and support.
- Add Time to Deadlines
The government plays a large role in business transactions which may slow down the negotiation process.
- Build Relationships
Relationships are important and care should be taken to develop them outside of the business environment. At times, when people feel like they know each other well, they will kiss on each cheek; always let the other person initiate this long-standing French tradition.
French cooking is internationally renowned and it has influenced many cultures. France may be well known for its wines and breads, but it’s true strength is cheese. It has over 350 types of cheeses. And each cheese belongs to a French region.
A popular dish is the onion soup, which is made up of meat stock and onions, topped with grilled cheese. Another popular dish is cassoulet which comes from southern France. It is a slow stemmed stew of duck, pork, and white beans.
Filet Mignon, which is the gold standard for steaks, comes from France. It is made using a small strip of tenderloin seared over a cast iron plate using olive oil and butter, and baked in an oven. France also has a rich and complex tradition of pastries.
The population of France is 67,848,156 and it has an 80.71% urban population. The primary immigrants to the country are people from former French colonies and from Portugal, Italy, Spain, Poland, Greece, and Turkey.
The official language is French, but the educational system prepared many in the population to speak English, German, and Spanish. Roman Catholicism is the most popular religion but there is also a significant number of Muslims and Jews. In general, France has impacted the world with its literature, fashion, and philosophy and it remains a global center of high culture.
The French territory is diverse with forests, plains, and mountains. It is situated in western Europe and shares borders with Germany, Switzerland, Italy, Spain, Luxembourg, Monaco, Andorra, and Belgium. The highest point in France is a mountain called Mont Blanc.
Most of the country experiences cool winters and mild summers and the Mediterranean area experiences mild winters and hot summers. The French Riviera in the Mediterranean area is known for its beauty and vacation spots. It also has several overseas territories.
This city is considered the best place in France to begin a start-up business, especially in the tech field. Every year there is a start-up weekend to encourage collaboration among entrepreneurs, and there are several universities in the area.
This is a great city for entrepreneurs, and is close to Paris. It is considered very friendly to American expats, and sponsors several events, presentations and symposiums on business and entrepreneurialism each year.
Many large brands host start-up incubator events here, and it is an amazing place for networking. Eco
friendly businesses will do great here, but it is not a place for tourism.
As the capital of France, lawmakers are putting efforts in place to make this a better place to launch start-ups. A 1.2 million square foot warehouse is currently being converted into the largest start-up incubator in the world. If you can afford to wait, and have money to spend, Paris is a great place for business.
|Num. States / Province|
There are 18 administrative regions, five of
which are not within France itself.
|Thousands Separator Format||999,999,999,99|
|Country Dial Code||+33|
|France borders Belgium and Luxembourg, Germany, Switzerland, and Italy, Monaco, Spain, and Andorra. France also shares maritime borders with the United Kingdom.|
|Continental surface||210,020 mi²|
|Fiscal Year||January 1 to December 31|
|Taxpayer Identification Number Name in the country||TIN|
|Current President||Emmanuel Macron|
What you need to know about employing personal in France:
Laws and Agencies that regulate labor relationships
In France there is little room for negotiation when it comes to employment law. There is a hierarchy between the rules, for example when choosing between the Labour Code and the relevant collective bargaining agree- ment, whichever favors the employee more applies as the law.
|Constitution of France 1958 (rev. 2008)||This is the main constitution of France|
|Organization membership –||The Asian Development Bank, Council of Europe, OAS (as a permanent observer), OECD, various community commissions and groups, and other intergovernmental organizations, the UN, ECE, ECLAC, ESCAP, EU, NATO, Supreme Headquarters Allied Powers Europe, and Allied Forces Central Europe . France is also a signatory of the Law of the Sea and a member of the WTO.|
|Collective Bargaining Agreements||These can be negotiated between employer and labour unions.|
|Labor Code||Code du Travail, which is a very comprehensive framework between employers and employees.|
|Collective Bargaining Agreements|
In France all employees and their families can contribute and it includes, health, maternity, paternity, disability and death insurance.
Occupational accident, and illness insurance. Government pension contributions.
Key Tax and Labor Authorities
|The Ministry of Finance||This deals with taxation.|
|The Autorité des Marchés Financiers (AMF)||This regulates the French financial market place and its participants.|
|These contracts have explicit start and end dates. The maximum length is usually about 18 months. This can extend to 24 months under certain circumstances, and these contracts have to be in writing.|
Permanent Employment Contract
|These are to work part-time or full-time permanently for an employer. Working hours are often placed into the contract. With this contract notice must be given if you quit, and grounds for dismissal must be demonstrated.|
|Work Hours||35 hours a week are paid an additional 25% for the next 8 overtime hours and an additional 50% per hour, with no limit.|
Annual Taxable Income
Taxation in France is determined by a vote of the French Parliament, this then determines which taxes can be levied and which rates to be applied. These taxes go to the Central Government, Local Governments, and the Social Security Association. The impôt sur le revenu (IR) is a tax on all income available to individuals in a year, deductions are applied with certain things. The amount of taxable income is not decided per household, but instead per unit. There is one unit for every adult and 0.5 units for every first two children and 1 unit for each successive child.
For example in 2017.
|Per Unit in Euros||Rate|
Corporate Tax Rates
This is the tax paid on the profits earned by companies and is 26.5% in France as of 2021 for a company who earned less than 250 million euros. For larger companies the tax rate is 27.5%.
|1 January||New Year’s Day|
The first Sunday after the full Moon that
occurs on or after the spring equinox
|Monday after Easter Sunday||Easter Monday|
|1 May||Labour Day|
|8 May||Victory in Europe Day|
|26 May||Ascension Day|
|14 July||Whit Monday|
|3 Oct||Bastille Day|
|15 Aug||Feast of Assumption|
|1 Nov||All Saints Day|
|25 December||Christmas Day|
There must be grounds for dismissal when letting an employee go in France, with an open ended contract.
|Type of Termination||Brief Description|
An employee must have valid grounds, either personal grounds or economic grounds. Personal may include something like bad behavior or poor performance, economic reasons are the financial difficulties of the company.
Notice must be given and this depends on how long the employee has been working there. As well as relevant bargaining agreements. An employer may also choose to pay out an indemnity in place of a notice period. If an employee wants to contest a dismissal they have 15 days. The Industrial Tribunal called the Conseil de prud’hommes (CPH) will determine if they think the employee was let go fairly.
|French law is quite complex when it comes to redundancy, and can end up quite costly. The notice is dependent upon how long the employee has worked there. There are minimum severance payments based on an employee’s monthly salary.|
|An employee may retire once they reach the age of 62 years of age, or 60 if they are born before July 1st 1951. Those with work related injuries and disability may retire early. The employee will receive a quarterly pension increase to encourage them to continue working.|
Other forms of compensation upon termination include:
Severance pay is given as one fourth of a monthly salary for each year of service for the first ten years of service, based on the average pay over the last 12 months. One third of their monthly salary is given for each year above 10 years of service.
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