Setting up in France might seem complicated for foreign companies, particularly because of the social benefits that French employees enjoy. The French social system is often seen as complex and costly, which may deter some businesses from establishing themselves in France. However, these social benefits should not scare companies—quite the opposite. They can become an asset for attracting and retaining qualified talent.
At Projinvest Services, we help companies test the French market and hire employees without having to set up a company in France, thanks to the status of a “Company Without Establishment in France” (ESEF). Let’s explore why you shouldn’t fear French employee social benefits.
Social benefits in France: a framework to understand and optimize
Social benefits in France include a set of protections and rights for employees, such as:
- Social security : This is a universal protection covering health, family allowances, unemployment insurance, and pensions. As an employer, you will need to contribute to this system for your employees in France, which ensures them comprehensive protection and enhances their sense of security and loyalty to the company.
- Paid vacation : Generally, French employees are entitled to five weeks of paid vacation per year. Although this may seem like a lot compared to many countries, this time off allows for a good work-life balance, which can translate into higher productivity.
- Pensions and other social contributions : French social contributions also include mandatory payments for pensions and other social benefits. The cost of these benefits, which provide long-term protection for employees, is shared between employers (employer contributions) and employees (employee contributions).
Even though these obligations may seem restrictive, remember that they contribute to a stable and secure work environment. Consequently, employees are often more engaged and productive in their work, which will reflect on performance in the French market.
Optimizing employee management in France without setting up a company in France
There is no need to fear these benefits, as they offer real advantages (higher productivity and loyalty to the company). More importantly, they represent the only real concern for foreign companies wishing to establish in France without creating a local entity.
Indeed, thanks to the status of “Company Without Establishment in France” (ESEF), foreign companies can test the French market and employ staff in France with minimal investment and, above all, without creating a company in France. Here are the main benefits of ESEF status :
- No need to create a company in France : You do not need to create or register a company in France, nor do you need to rent or invest in office space if your employees can work remotely. However, you can still hire employees and test the French market.
- Simplified employee management : By choosing to work with Projinvest Services, you don’t have to manage the formalities related to employing staff (payroll management, social security declarations). We take care of everything for you so that you can focus on growing your business.
- Access to a dynamic market : France is one of the world’s leading economies and part of the European Union, allowing you to enter both the French and European markets. Social benefits can also make the country more attractive to local and international talent.
In conclusion, if you want to enter the French and European markets without creating a company in France, do not fear employee social benefits ! They should not be seen as an obstacle, as with ESEF status and our support as a liaison office, you can enjoy the flexibility needed to test the market and hire local talent while minimizing risks and costs.
If you wish to start your business in France without setting up a company, feel free to contact us to present your project !
