Frequently Asked Questions
Frequently Asked Questions
As you consider setting up business or hiring employees in France,
here are the answers to some of the basic questions you may have.
As long as your business activities in France will not be of the nature of a permanent establishment, it is possible to register as a non- resident employer with no formal structure in France.
The standard corporate tax rate in France is 25%. A reduced rate of 15% applies to companies that do not exceed certain thresholds, but only on their net profit capped at 42 500€.
The standard working week is 35 hours.
Social contributions rates vary according to levels of salary and benefits. An average rate would be 45%.
A Collective Bargaining Agreement (CBA) is an agreement negotiated at industry level between employer and employee unions and contains rules that in addition to French law govern the conditions of employment within a specific industry.
Yes, all employers in France have to organize regular medical checks for their employees in order to have them declared medically apt to perform their duties.
When you have had more than 10 employees for a period of 12 months you are obliged to organize elections for the nomination of employee representatives.
Once all necessary documentation is in place, the registration process takes 2-3 weeks, but the time necessary to gather the required information and documentation should not be underestimated! This can take several weeks and sometimes months.
The timeline varies from 3-8 weeks, depending on time of year.
The standard entitlement for paid leave is 25 days. This can vary depending on the industry and on individual seniority. The holiday year runs from June to May. Vacation earned in one year is taken the following year.
RTT days or rest days are extra days off to compensate for working time arrangements which exceed 35 hours per week.
Employee contribution rates vary according to levels of salary and benefits. An average rate would be 23%. This does not include employee withholding tax which will vary depending on each employee’s tax rate.
Mandatory benefits will depend on the applicable Collective Bargaining Agreement, but health insurance is mandatory in all companies and in most industries there is a mandatory death/disability insurance plan.
Standard maternity leave is 16 weeks, but this increases for the third child or in the event of multiple births (twins etc.)
Luncheon vouchers are a relatively widespread benefit in France. The employer participates in the cost of vouchers which can be used to buy meals during lunch break. The benefit of the employer contribution is exempt of any taxation or social contributions.
As long as your business activities in France will not be of the nature of a permanent establishment, it is possible to register as a non- resident employer with no formal structure in France.
The standard corporate tax rate in France is 25%. A reduced rate of 15% applies to companies that do not exceed certain thresholds, but only on their net profit capped at 42 500€.
The standard working week is 35 hours.
Social contributions rates vary according to levels of salary and benefits. An average rate would be 45%.
A Collective Bargaining Agreement (CBA) is an agreement negotiated at industry level between employer and employee unions and contains rules that in addition to French law govern the conditions of employment within a specific industry.
Yes, all employers in France have to organize regular medical checks for their employees in order to have them declared medically apt to perform their duties.
When you have had more than 10 employees for a period of 12 months you are obliged to organize elections for the nomination of employee representatives.
Once all necessary documentation is in place, the registration process takes 2-3 weeks, but the time necessary to gather the required information and documentation should not be underestimated! This can take several weeks and sometimes months.
The timeline varies from 3-8 weeks, depending on time of year.
The standard entitlement for paid leave is 25 days. This can vary depending on the industry and on individual seniority. The holiday year runs from June to May. Vacation earned in one year is taken the following year.
RTT days or rest days are extra days off to compensate for working time arrangements which exceed 35 hours per week.
Employee contribution rates vary according to levels of salary and benefits. An average rate would be 23%. This does not include employee withholding tax which will vary depending on each employee’s tax rate.
Mandatory benefits will depend on the applicable Collective Bargaining Agreement, but health insurance is mandatory in all companies and in most industries there is a mandatory death/disability insurance plan.
Standard maternity leave is 16 weeks, but this increases for the third child or in the event of multiple births (twins etc.)
Luncheon vouchers are a relatively widespread benefit in France. The employer participates in the cost of vouchers which can be used to buy meals during lunch break. The benefit of the employer contribution is exempt of any taxation or social contributions.