France, with its dynamic economy and skilled workforce, attracts many foreign companies looking to establish a presence or hire locally.
Several options are available for employing workers in France, each suited to different needs in terms of flexibility, cost, and long-term strategy.
- Establishing a Subsidiary in France
Creating a subsidiary (such as an SARL or SAS) is the most permanent solution for a foreign company seeking to establish a long-term presence in France.
This legal structure allows direct hiring of employees under French labor law, including compliance with the French Labor Code and collective bargaining agreements.
The process involves registering with the French Trade and Companies Register (RCS) and declaring the subsidiary to the URSSAF.
- Advantages: Legal autonomy, local credibility, access to hiring incentives.
- Disadvantages: Operational costs and administrative complexity.
- Secondment
Secondment allows a foreign company to temporarily send its employees to work in France under certain conditions.
The employee remains under the original employer’s contract but must be declared to French authorities through a prior posting declaration.
The maximum duration is typically 12 to 36 months, depending on bilateral agreements.
- Advantages: Flexibility, maintains the employee’s connection to the home company.
- Disadvantages: Time-limited, complex social and fiscal obligations.
- Using an Employer of Record (EOR)
An Employer of Record (EOR) is a third-party company that legally employs workers on behalf of the foreign company.
The EOR manages contracts, payroll, and social obligations, while the foreign company oversees daily work.
- Advantages: Quick setup, no need for a local entity, guaranteed compliance.
- Disadvantages: Additional costs (service fees), reliance on a third-party provider.
- International Employment Contracts
A foreign company can hire employees under a foreign law contract, but if the employee works primarily in France, French labor law and social contributions may apply.
This option is best suited for employees working mostly outside France.
- Advantages: Simplicity for short-term or overseas assignments.
- Disadvantages: Risk of reclassification as a French contract, fiscal complexity.
- Hiring Freelancers or Independent Contractors
Engaging freelancers or independent contractors is a flexible solution for short-term projects.
Platforms facilitate these collaborations.
However, companies must avoid disguised employment, which is illegal under French law.
- Advantages: Flexibility, no employer social charges.
- Disadvantages: Legal risks, lack of employer control.
- Partnering with a Portage Salarial Company
Portage salarial allows a foreign company to outsource the administrative management of an employee to a French portage company.
The employee is hired by the portage company but works for the foreign company.
- Advantages: Simplicity, compliance, flexibility.
- Disadvantages: Costs (portage fees), limited duration.
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The best choice depends on the project’s duration, budget, and long-term strategy.
For a permanent presence, establishing a subsidiary is recommended.
We recommend consulting a legal or accounting expert to select the best option for your needs.
CLÉMENT RAINGEARD 25, Avenue Georges V 75008 Paris France Telephone : Paris: +33 1 49 52 91 91 Email : clement.raingeard@bkpavocat.com Website : http://www.bkpavocat.com