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France is one of the major economic powers of the world, alongside countries such as the United States, Japan, Germany, Italy, and the United Kingdom. It also has a diversified economy led mainly by tourism, manufacturing, and pharmaceuticals. In recent years, the government has pushed for a series of reforms that further spurred the economic freedom and growth of the country, including plans to reduce unemployment, improve the investment climate, and increase competitiveness. Overall, due to the steady economic growth in France, a substantial rise in living standards as well as taxation in the form of a value-added tax (VAT) follow. In fact, the taxes and social security contributions levied on employers and employees in France are higher than in many other European countries.

How to build a team in France

Employers need to follow the strict employment guidelines set forth by the local authorities before they could employ in France. This process can be time-consuming as the company first needs a legal entity in the country and it needs to manage payroll, tax, benefits and compliance.

Global payroll solutions make it easy to find and hire top talent in France. With one seamless integration and local legal entity, we take care of the compliance matters so that you can start your globelizing plan immediately.

Compliance risk

Risk of misclassification

France’s worker classification labour and tax laws distinguish between contractors and full timers. If the individual meets the legal definition of an employee but is classified as a contractor, your company will face penalties.

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