France is the world’s seventh-largest and Europe’s second-largest economy. France tops the list of most visited countries, with tourism as a major economic contributor. Key industries include luxury goods, automotive manufacturing, pharmaceuticals, aerospace, and technology, with rapidly growing sectors in fintech, renewable energy, and AI.
Unlock growth opportunities in France with Cerity Global as your trusted partner. We offer end-to-end support for establishing your legal entity, navigating France’s often complex regulatory landscape with clarity and efficiency.
From company registration to ongoing back-office support, including HR, payroll, benefits, accounting, tax and compliance, Cerity Global simplifies the process so you can focus on growing your business.
Need to hire quickly before your entity is set up? We offer interim EOR services in France, enabling you to onboard talent fast. Once your entity is established, we ensure a smooth transition of your employees from the EOR Structure to your own legal entity, without disrupting payroll or compliance.
Our experts stay ahead of regulatory changes to keep your operations aligned with France’s employment and tax laws, helping you scale confidently and compliantly.
A SARL is a type of business entity that can be established by at least 2 and up to 100 partners, similar to a limited liability company. It offers flexibility for small to medium-sized businesses and is managed by one or more managers (gérants) who can be partners or third parties. The liability of partners is limited to their capital contributions.
The simplified joint-stock company (SAS) is a legal entity known for its high degree of operational, developmental, and structural flexibility. It’s suitable for most commercial, craft, liberal, and industrial activities. The SAS is managed by a president and can have additional officers as needed. It offers greater flexibility in terms of governance and capital structure.
A joint-stock company suitable for larger businesses, the SA requires a minimum of 2 shareholders (or 7 if publicly traded) and has a more rigid governance structure. It’s managed by a board of directors or a supervisory board with a management board, depending on the chosen structure.
A branch office allows foreign companies to establish a presence in France while maintaining their original legal structure. The branch carries out the parent company’s business activities and is subject to French regulations for its local operations.
At least one manager (gérant) is required, who can be a natural person or a legal entity. The manager may or may not be a partner and must be appointed by the partners.
A president is required and must be a natural person. Additional officers can be appointed as needed, and the governance structure is highly flexible and defined in the company’s bylaws.
A board of directors with at least 3 members is required, or alternatively, a supervisory board with a management board. Directors can be natural persons or legal entities, with specific rules for board composition.
A legal representative must be appointed to manage the branch’s operations in France and act on behalf of the parent company.
In France, bank account setup follows a specific process that integrates with entity incorporation:
Bank Account Setup in France: What’s Possible and When
Before Incorporation:
After Incorporation:
Note:
French banks typically require extensive documentation and may prefer in-person meetings for account opening.
Required documents include the company’s certificate of incorporation, K-bis extract, directors’ identification, and proof of business address.
Cerity Global supports companies in their global expansion plans and helps in legal entity setup, registration and ongoing support services. With us, you can quickly set up a legal entity, operate compliantly, and expand globally. The process typically takes a few days to a week, depending on the bank.
Employment in France is primarily governed by the following laws:
Including, industry-specific Collective Bargaining Agreements (conventions collectives), which are legally binding.
In France, employment contracts are written and mandatory for fixed-term contracts (CDD) and part-time contracts. However, indefinite-term (CDI) positions don’t necessarily require a written agreement.
Some of the standard details mentioned in the written contract include:
The different types of employment relationships are:
Contrat à Durée Indéterminée
Also known as permanent employments, these contracts have no fixed end date, providing maximum job security and stability. CDI contracts are the standard form of employment in France and can be full-time or part-time.
Contrat à Durée Déterminé
Also known as fixed-term contracts these come with a specific end date, used for temporary needs such as seasonal work, replacing absent employees, or specific projects. CDD contracts are subject to strict regulations and cannot exceed 18 months in most cases.
In France, a probationary period or période d’essai typically lasts up to:
For CDDs over six months, probationary periods are calculated one day per week over a maximum of one month.
The probationary period can be renewed once for the same duration, subject to collective agreement provisions.
The standard working week is 35 hours, and hours worked beyond this are considered overtime. Annual overtime is limited to 220 hours per employee.
Overtime
There’s an annual limit of a maximum of 10 hours per day and 48 hours per week (or 44 hours averaged over 12 consecutive weeks).
France’s minimum wage system (SMIC – Salaire Minimum Interprofessionnel de Croissance) sets the following:
The notice period in France usually depends on the length of service and ranges from one to three months.
Severance pay, also known as, indemnité de licenciement is legally required for employees with eight months of seniority or more on an open-ended contract dismissed for economic or personal reasons. The law establishes a minimum threshold for severance payments, and it is:
Foreign nationals can live and work in France by securing appropriate work authorization. With a valid job offer and employer sponsorship, qualified individuals may be eligible for various types of work permits.
Work Visa & Permit Options in France
1. EU Blue Card
A standardized EU-wide permit for highly skilled non-EU workers.
2. Talent Passport (Passeport Talent)
For highly skilled professionals and various specific categories.
3. General Work Authorization (Autorisation de Travail)
For standard employment not covered by other schemes.
4. Intra-Company Transfer (ICT)
For companies transferring employees to French subsidiaries.
5. Freelance/Self-Employed Visa
For independent professionals and entrepreneurs.
Key Notes:
Employees in France receive 25 working days (5 weeks) of annual paid leave, accrued at 2.5 working days per month.
Female employees are entitled to 16 weeks of maternity leave:
Male employees receive 25 calendar days of paternity leave and an obligatory leave of 3 working days after childbirth.
Sick leave in France is covered by social security with the following structure:
The following statutory national holidays are observed in France:
The most common length of the pay period is usually monthly.
Unlike some countries, France does not have mandatory 13th or 14th month bonuses. However, many collective agreements or companies voluntarily provide additional bonuses or profit-sharing (participation and intéressement).
Employees and employers in France both contribute to a comprehensive social security system, which covers healthcare, pensions, unemployment, family support, and other statutory benefits.
France has a comprehensive social security system with mandatory contributions covering:
Accounting standards must adhere to French GAAP (Plan Comptable Général), overseen by the Autorité des Normes Comptables. EU-adopted IFRS (International Financial Reporting Standards) apply to companies whose securities are traded on regulated markets.
Companies in France must file annual financial statements with the Commercial Court Registry (Greffe du Tribunal de Commerce).
Statutory audit is required if a company exceeds two of the following three thresholds for two consecutive fiscal years:
Audits must be performed by a certified auditor (Commissaire aux Comptes) and submitted with the annual accounts.
The standard corporate tax rate is 25%.
The VAT rate in France is 20%.
The reduced VAT rates are 10% and 5.5%, and a super-reduced VAT rate of 2.1%.
Typically, the tax return must be filed electronically by 15 May of the following year.
Penalties for late filing are subject to a 10% penalty.
France follows OECD Transfer Pricing Guidelines under Article 57 of the French Tax Code.
France has implemented CbC reporting in line with OECD BEPS Action 13.
Transfer pricing documentation is mandatory for companies exceeding certain thresholds.
Master File
Local File
Deadline: Transfer pricing documentation must be prepared by the corporate tax return deadline and submitted within 30 days upon request by French tax authorities.
France fully implements the EU General Data Protection Regulation (GDPR), with additional provisions under the French Data Protection Act (Loi Informatique et Libertés).
Key requirements:
Enforcement: CNIL (Commission Nationale de l’Informatique et des Libertés) with fines up to €20 million or 4% of annual turnover.
France’s AML framework is governed by the Monetary and Financial Code, implementing EU Directives 2015/849 (4th AML Directive) and 2018/843 (5th AML Directive).
Obligated entities: Financial institutions, lawyers, notaries, accountants, real estate professionals, and other designated professions.
Key requirements:
Penalties: Administrative fines up to €10 million or 10% of annual turnover, plus criminal sanctions.
Reasons you should setup legal entity in France:
Cerity Global ensures your business expansion in France is fast, compliant, and future-ready, so you can focus on growth while we manage the back-office tasks.
Economic figures are subject to change based on quarterly reports and market conditions.
Cerity Global combines deep local knowledge with proven expertise to make your France business establishment effortless and compliant. Whether you’re looking for legal entity setup and registration or ongoing support, we’re your trusted partner for sustainable global expansion in France.
Disclaimer – The information provided is for informational purposes only and does not constitute legal, business, or tax advice. Entity setup requirements, tax rates, and economic data are subject to change and may vary by location.
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