Frequently Asked Questions

Frequently Asked Questions

HiConnect 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 corporate tax rate in France is currently 28% for profits up to 500.000€ and 31% for profits beyond. These rates will progressively decrease through 2022 when the standard rate on all profits will be 25%.

If you set up a subsidiary company, you will need to have a bank account in France. If you only open a branch office you do not have to have a local bank account, but having one facilitates business operations.

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%.

 

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 corporate tax rate in France is currently 28% for profits up to 500.000€ and 31% for profits beyond. These rates will progressively decrease through 2022 when the standard rate on all profits will be 25%.

If you set up a subsidiary company, you will need to have a bank account in France. If you only open a branch office you do not have to have a local bank account, but having one facilitates business operations.

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%.

 

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.

*The information provided on this site is not to be considered as legal advice. Companies are encouraged to seek more detailed advice adapted to their specific context, industry and environment by contacting HiConnect and its attorney business partners or alternative legal counsel.*
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