Remote work has seen exponential growth in recent years. Good news: it allows employees residing in France to work for foreign companies that do not even have an establishment in France. Here’s how it works and what you need to know if you want to hire remote employees in France without creating a legal entity there.
Working for a foreign company without an establishment in France: what does it mean?
A foreign company without an establishment in France (ESEF) is a legal structure with no office, branch, or subsidiary registered in France. It has no local legal entity but can still employ staff in France. A person living in France can work from home for a foreign company and be legally considered an employee in France.
Remote employee: a regulated legal status
Compliance with French labor law
Even when working remotely, French labor law applies to employees based in France, requiring the foreign employer to comply with:
- legal working hours (35h/week),
- paid leave,
- minimum wage (SMIC or equivalent collective agreement),
- social obligations (employee registration, social contributions…),
- income tax withholding obligations.
Employee declaration and social contributions
A foreign company without an establishment in France must register with URSSAF via the Centre National des Firmes Étrangères (CNFE) and declare each employee working in France. This enables the calculation and payment of mandatory social contributions.
The foreign employer must also subscribe to complementary retirement and health insurance for its employees in France.
What are the advantages of the ESEF + remote work model for companies?
Advantages for a foreign company looking to enter the French and European market:
- no complex procedures to create a subsidiary or branch,
- ability to test the French market without structural commitment,
- recruit French talent without heavy administrative constraints,
- reduced local management costs, especially tax-related.
And for the French employee?
Working remotely for a foreign company while being legally recognized as an employee in France offers many benefits:
- geographical autonomy,
- competitive salaries often higher than French standards,
- protective employee status under French labor law,
- more flexible lifestyle: working from home or in nearby coworking spaces.
Working for a foreign company without a French establishment is no longer unusual. With the rise of remote work, collaborative tools, and demand for international profiles, this model has become a real growth and attractiveness lever for foreign companies, offering new professional opportunities to French workers.
This can be a win-win situation for all parties, provided the legal and tax implications are well understood. For more information on the ESEF status and the steps to hire employees in France, feel free to contact us.