France is a strategic destination for foreign companies seeking to invest in the French and European markets. The process of establishing a subsidiary, however, can seem complex and costly, especially if the goal is merely to test the market or employ one or more collaborators. Fortunately, the Enterprise Without Establishment in France (ESEF) status allows avoiding the creation of a subsidiary or branch.
In this article, we explain how to hire employees in France while remaining a foreign company, using tailored systems and professional support.
What is the ESEF Status (Enterprise Without Establishment in France)?
The ESEF status allows a foreign company to legally employ workers in France without the obligation to create a legal entity in the French territory. This approach is ideal for companies looking to test the market, recruit a local expert, or meet a specific need while minimizing administrative processes and structural costs.
Key Steps to Hiring Employees in France as an ESEF
Register with the Foreign Firms Service
To benefit from the ESEF status and recruit employees in France, a foreign company must register with the URSSAF’s Foreign Firms Service by completing the EE0 form to obtain a SIRET number and open a contributor account with this service.
Find the Right Candidate
To find the candidate matching your needs, we recommend the following actions:
- Post job offers on online platforms like Indeed, LinkedIn, Monster, Welcome to the Jungle.
- Collaborate with recruitment agencies: these agencies have in-depth knowledge of the French market and can identify top talents to guide you throughout the recruitment process.
- Leverage local contacts: word of mouth remains an effective way to find reliable candidates. Don’t hesitate to seek advice from partners or collaborators already based in France.
Draft an Employment Contract
Employment contracts in France are subject to French legislation, including:
- Respecting the minimum wage (SMIC or applicable collective agreement).
- Complying with the legal working hours (35 per week).
- Offering social benefits such as paid leave, retirement contributions, and health coverage.
Submit a Prior Hiring Declaration (DPAE)
Within eight days before hiring an employee, the employer must file a DPAE with URSSAF.
Subscribe to a Complementary Retirement Plan and Health Insurance
French law requires employers to join a complementary retirement fund and offer collective health insurance to employees. In some cases, employers must also adhere to a provident fund (covering risks like death, incapacity, and invalidity) or a construction fund (for construction companies only).
Fulfilling Social and Tax Obligations
Foreign companies employing staff in France must:
- Declare and pay social contributions to the relevant organizations (URSSAF, Pôle Emploi, retirement, etc.).
- Manage income tax withholding for employees.
Advantages of Hiring under ESEF Status
- Operational Flexibility: Companies can recruit quickly and start investing in the French market without spending time and money establishing a subsidiary.
- Cost Reduction: Administrative and cost burdens are minimized without a permanent structure in France.
- Risk-Free Market Testing: ESEF status allows companies to test the French market by simply recruiting local employees familiar with the market and cultural specifics. This offers a low-risk way to assess project feasibility before deeper investment.
For foreign companies wishing to establish in France while leveraging ESEF status, feel free to contact Projinvest Services. We will assist you with your market entry and recruitment projects in France.
