Are you a foreign company looking for a service provider to manage your employees’ payroll in France? Here are our best tips to find the right partner to assist you with payroll management in France.
Why Outsource Payroll in France?
French labor law is known for its complexity and constant changes. To avoid mistakes and comply strictly with French regulations (Labor Code, collective agreements, Tax Code, etc.), expert knowledge is essential.
To simplify the process, outsourcing payroll — assigning the task to an external provider — remains the easiest solution. Payroll outsourcing offers several advantages:
- Reduces the risk of errors (and the associated social penalties).
- Saves time on administrative tasks.
- Avoids hiring an employee solely for payroll management.
For a foreign company, outsourcing also allows full compliance with payroll obligations (payslip issuance, social contribution declarations and payments, income tax withholding, etc.) without creating a legal structure in France.
How to Find a Payroll Provider in France?
Identify your needs: Define whether you need help solely with payroll or if the provider should handle other tasks (e.g., drafting employment contracts, declaring social charges). A bilingual provider (French/English) may simplify communication.
Look for providers specializing in foreign companies: Some companies are experts in handling payroll for businesses without a physical presence in France, like Projinvest Services. They understand the specific needs of companies under the ESEF (Entreprise Sans Établissement en France) model.
Research providers: Read customer reviews and ask for detailed service information. Choose experienced providers to avoid surprises (e.g., Projinvest Services manages payroll for companies across five continents and has worked with ESEF companies since 2004).
ESEF: A Simple Way to Hire in France Without a Legal Entity
An ESEF (Company Without Establishment in France) is a foreign business employing staff in France without having a subsidiary, branch, or establishment there.
However, ESEF companies must still register with French social bodies (e.g., URSSAF) and pay taxes and social contributions.
ESEF Advantages:
- No need to set up a legal entity in France.
- Reduced administrative costs and formalities.
- Test the French market with limited risk.
Conclusion: Outsourcing + ESEF = The Winning Formula
If you want to explore the French market and recruit local talent without creating a French entity, the combination of ESEF + payroll provider is the ideal solution.
A good provider will guide you every step of the way: registration, payslip management, social declarations, employment contracts…
Need help finding a payroll provider in France?
Contact us to get connected with experts already assisting numerous foreign companies operating under the ESEF model.