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Establishing your business in France
Getting up and running in France varies significantly, depending on which type of business entity you want to operate there.
For limited companies (SARL), joint-stock companies (SA) and simplified stock companies (SAS), incorporation sets the business up either as a branch office, liaison office or subsidiary company. But the rules for subsidiaries, popular with incoming investors, are somewhat different because there are many tax benefits involved.
Articles of incorporation and patent/trademark registration should be drawn up and approved, and share capital should be deposited in a bank. Once this has been done and an incorporation notice filed, documentation should be filed with the Centre de Formalites des Enterprise and finally the Commercial Court.
The French financial year runs in accordance with the calendar year, and tax returns are expected to be filed by late May or early June the following year (the dates vary slightly in different departments of France). Running payroll from a French bank account is not mandatory but can be easier.
Employment Law in France
The Code du Travail is France’s labour code and is the cornerstone of employment regulations, both in terms of employer and employee responsibilities. It’s worth taking some time to familiarize yourself with its key points and principles.
Working hours in France are typically 35 per week – lower than in most other European countries – and are limited to ten per day and, in line with the EU Working Time Directive, 48 per week. However, these can be varied to an extent through collective bargaining. France is also very strict on the ‘right to disconnect’, whereby employees should not be expected to check emails or use similar work-related technology outside of their designated working hours.
Probation periods in France are generally between one and three months in duration, the latter being more likely for senior management. Collective bargaining can extend this to as much as five months. Terminating employees can be very difficult in France, and can only be done through necessary redundancy or proven underperformance of an employee. Notice periods are one month after six months of service, and two months after two years or more.
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Any international business operating in France is not only accessing a huge market but one that can open doors in the rest of Europe and the Francophone world further afield. However, French culture and traditions can be very unique, and this can impact your desires for a smooth-running, compliant payroll system.
This is where TopSource Worldwide, as an expert in international payroll, can make the difference. Whether you’re just starting your expansion into the European Mainland, with ambitions of spreading into Spain, Germany and Sweden or you’re already operating within the French market, we have the solutions and expertise to help you deliver a payroll solution that will encourage staff retention and ensure national compliance.