France

France, one of the oldest countries in the world with a population of over 67 million, is located in western Europe. It is the most important agricultural producer in Europe, while also being a global forerunner in the industrial power sector. Tourism is also a vital component to their economy.
At Global Upside, we can help your business or organization hire employees in France, in addition to establishing a legal overseas office.
• Global Upside manages services such as talent acquisition, human resources, accounting and payroll globally. Our team provides an end-to-end service to keep all the business operations running smoothly.
• The hiring process in France can be complicated, not to mention the time-consuming and expensive process of starting a branch office. We help to lift that burden from your business.
• We not only hire employees on your behalf, but also take care of any legal formalities involved.

Capital City

Paris

Currency

Euro (€)

Language

French

Government

Republic

Country Overview

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 7th largest economy in the world with regards to the GDP.
  • Ranks as the 3rd largest economy in Europe in reference to the GDP.
  • Banks here even offer corporate loans, as the rates of interest are cheaper than other European countries.
  • The workforce available here is extraordinarily good.

Legal Entity Setup

In France, many foreign companies are permitted to operate via branch offices or subsidiaries.

Branch Office

Branch Office is a dependent entity registered under the parent company. Since it does not enjoy the status of being a legal entity, the policies that are to be followed are the internal ones. All the obligations need to be taken care of by the parent company and the launch needs to be registered at the regional Register of Commerce and Companies.

Subsidiary

Subsidiary is a single entity and needs to get registered under the Registre du Commerce et des societes. There are 2 kinds of subsidiaries –

  1. Private Limited Liability Company – any small to mid-size business can register as a PLLC. The number of shareholders can only be up to 100 and there is no minimum share capital required.
  2. Joint stock company – is formed when minimum 7 founders come together. Here the share capital needs to be at least €37,000. Bigger companies usually opt for this kind of an establishment.

It takes at least 2-4 weeks to establish a legal entity setup in France, depending on the kind of arrangement required.

Payroll

France does not have a fixed rule regarding the day of payment of wages, however agreement on collective bargaining is mandatory.

Accounting

The accounting standards must be under the France accounting standards.

Human Resources

The major sources of employment laws for Germany are collective bargaining agreements, federal laws, and case law with work council agreements. The employment laws are only applicable for employees or dependent staff. Self-employed or freelancers are excluded. The documents are to be handed over to the employees by the employers within a month of the former joining the organization. The law states 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

For more detailed information, you can visit the website and start the registration process.

Tax & Compliance

Corporate Tax

The national tax rate here ranges from 0%-45% depending on the income.

VAT

The tax rate is 20% on goods and services.

Data Privacy/ GDPR

The collection and usage of all the personal data is controlled by the Personal Data Protection Act, PDPA.

In May of 2018, the GDPR came into action in France and states that data of employees can only be collected for legal matters. Any disregard or infringement with the GDPR will cause stern actions and penalties. Furthermore, a fine of up to €1.5 million can be implemented.

Anti-bribery & Anti-corruption Law

The anti-bribery and anti-corruption law in France are known as the Sapin II Law and is France’s own version of the Foreign Corrupt Practices Act (FCPA) of 1977.

The French Penal Code distinguishes the act of bribery in to two categories:

  • Bribery – inappropriate use of power associated with one’s role of function.
  • Influence Peddling – incorrect use of an official’s power to accomplish a task.

Both the above-mentioned classes of bribery are punishable offences and will result in financial penalties.