Expand Business in France
Global Upside helps businesses expand into France by providing talent acquisition, human resources, accounting, payroll, tax, incorporation, and professional employer organization (PEO)/employer of record (EOR) services. Our comprehensive offerings create an end-to-end solution that helps you establish your business and optimize your operations, all while maintaining compliance with French laws and regulations.
The hiring and incorporation processes in France are often complex, time-consuming, and involve numerous legal and compliance challenges. Global Upside simplifies these processes and lifts the compliance burden from your business. Our teams have the experience and expertise required to help you establish a legal entity in France. We also offer PEO/EOR solutions to companies interested in hiring employees quickly, without setting up a legal entity in the country.
France is located in western Europe and has a population of over 67 million people. The country is the most important agricultural producer in Europe and a global forerunner in the industrial power sector. Tourism is also a vital component of the French economy.
The French federal government guarantees its citizens free basic amenities such as education, healthcare, and pension plans. France has been classified as a high-income and wealthy nation by the World Bank. According to studies:
- France ranks as the 6th largest economy in the world
- France ranks as the 3rd largest economy in Europe in GDP
- Banks in France offer corporate loans at interest rates lower than most other European countries
A branch office is a dependent entity registered under the parent company. Since it does not enjoy legal entity status, internal policies are to be followed. All obligations must be taken care of by the parent company. The branch must be registered at the Regional Register of Commerce and Companies.
A subsidiary is a single entity and needs to get registered under the Registre du Commerce et des Societes. There are two kinds of subsidiaries:
- Private Limited Liability Company – any small to mid-size business can register as a PLLC. The maximum number of shareholders is 100. There is no minimum share capital required.
- Joint-Stock Company – a joint-stock company is formed when a minimum of seven founders come together. The share capital must be at least €37,000. Larger companies usually opt for this kind of establishment.
It takes at least 2-4 weeks to establish a legal entity in France, depending on the type of entity.
According to the French labor laws, there are two kinds of employment contracts, open term contracts (contrat à durée indéterminée) and fixed-term contracts (contrat a durée déterminée). The law states that for both types of contracts, it is mandatory to mention:
- Name of both the employer and employee in full
- Job title, duties, and responsibilities
- Contract duration
- Work location
- Remuneration details
- Probation period
- Working roster and leave details
The accounting requirements that companies must maintain compliance with are dictated by French accounting standards.
The collection and usage of personal data is controlled by the Personal Data Protection Act, PDPA.
In May of 2018, the General Data Protection Regulation (GDPR) came into effect in France. This regulation states that data of employees can only be collected for legal matters. Any disregard or infringement on GDPR statutes will result in severe penalties and fines of up to €1.5 million.
Anti-Bribery & Anti-Corruption Law
The anti-bribery and anti-corruption law in France is known as the Sapin II Law. This law is France’s own version of the Foreign Corrupt Practices Act (FCPA) of 1977.
The French Penal Code distinguishes the act of bribery into two categories:
- Bribery – inappropriate use of power associated with one’s role or function
- Influence Peddling – incorrect use of an official’s power to accomplish a task
Both the above-mentioned classes of bribery are punishable offenses and will result in financial penalties.