France

Currency

Euro (EUR)

Payroll Frequency

Monthly

Employer Taxes

29.50% - 31.30%

About France

France is located in western Europe, bordering the English channel to the north-west, the North Sea to the north, the nations of Monaco, Spain, Andorra and the Mediterranean sea to its South, Belgium and Luxembourg on the northeast, and Germany, Switzerland, and Italy directly to the east. The country also has a long colonial past with many regions and countries under its purview for centuries. After the French Revolution of the 18th century, France pioneered in democracy. It now has a presidential democracy and is among the strongest nations in Europe and key in the sustainability of the European Union.

Modern French people are Celtic and Latin with Teutonic, North African, Asian, Slavic, and Islamic minorities. France has welcomed refugees from countries ranging from the Czech Republic to Cambodia. It has a 99 percent literacy rate, and 90 percent of the French people are Roman Catholics. Major industries in France are telecommunication, agriculture, tourism, machinery, steel, and chemicals. The official language is French.

Company Formation Services in France

Aadmi makes company formation in France easy and less complicated. This is done by registering a business with the Registre du Commerce et des Sociétés (RCS), selecting the appropriate structure (sole proprietorship, partnership, or limited company), and being fully compliant with French business legislation. A majority of entrepreneurs prefer a limited company in France because it allows for the flexible running of the business and legal protection.

With our expert advice, establishing your business in France is hassle-free, keeping you compliant and on track for growth.

Company Types

Limited Company

A French Limited Company, referred to as “Société à Responsabilité Limitée” (SARL), is a popular private business structure that has its own legal personality separate from that of its shareholders. It must have at least one and up to 100 shareholders. SARLs cannot have their shares publicly traded. At least one manager (Gérant) must be appointed to manage its affairs.

Branch

Foreign businesses involved in manufacturing or trading operations overseas are allowed to establish a branch office in France. A branch is not regarded as an independent legal entity and is entirely dependent on the foreign parent business. The parent business is responsible for the debts and liabilities of the branch. Registration with the Registre du Commerce et des Sociétés (RCS) – French Trade and Companies Register – is required.

Partnership

Foreign and French investors can also form business partnerships, including a Société en Nom Collectif (SNC) or Société Civile. Partnerships enable joint management of business activities, profits, and losses. A Limited Liability Partnership form in the form of Société par Actions Simplifiée (SAS) is also used because it enjoys operational flexibility and protection from limited liability.

Incorporation Requirements

Paid-Up Capital

Minimum paid-up capital for a SARL is EUR 1, although in practice, companies register for more to meet operational requirements.

Foreign Percentage Ownership

There is 100% foreign ownership in most industries without any restriction. After incorporation, the company is treated as any other French company by law.

Local Director

There is no statutory requirement for a local French director. A foreigner may be the company manager if they meet the requirements of eligibility and possess any necessary residence or work permits.

Corporate Secretary

France does not have a mandatory Company Secretary for limited companies. Companies can, however, appoint one on a voluntary basis for internal management and compliance purposes.

Local Office Address

A registered office address in France is mandatory for company incorporation. This address is where all official correspondence will be sent and must be declared in the incorporation documents.

Incorporation Documentation

What are the Company Incorporation Documents to submit?

Articles of Association (Statutes)

Details of director(s) and shareholders

Identification documents and proof of address

Proof of the registered office address

Bank certificate confirming deposit of share capital (if applicable)

Declaration of Non-Conviction of Directors

Form M0 (company registration application)

Document appointing the company manager (if different from the Articles)

Incorporation Process

Register and Reserve the company name

France does not have a requirement for advance reservation of a company name as in other jurisdictions. Nevertheless, verification with the Institut National de la Propriété Industrielle (INPI) is advisable to ensure that the intended name is not duplicated or causes trademark issues.

Choose Filing Method

In France, the incorporation process is normally handled by the Centre de Formalités des Entreprises (CFE) or online through the Guichet Unique system.

Electronic Filing: Firms can be incorporated electronically through the Guichet-Entreprises.fr portal. Incorporation takes 5–7 business days.

Notarial Filing: In a few instances (particularly with certain SAS or SA arrangements), notarized articles are necessary, extending the process slightly.

Prepare Incorporation Documents

Articles of Association, identification information, and supporting documents need to be filled in and filed along with declarations and confirmation of share capital, if required.

Companies Register

The Registre du Commerce et des Sociétés (RCS) is the French Commercial Registry kept by the local Commercial Court. Every new company needs to be registered here in order to acquire a unique company identification number (SIREN).

Bank Account

It is required to open a corporate bank account in France for depositing the share capital and carrying on business transactions. French banks can ask for meetings in person, certified identification documents, company papers, address proofs, and compliance with KYC. BNP Paribas, Société Générale, Crédit Agricole, and La Banque Postale are popular banks in France.

Statutory Registrations

URSSAF

Urssaf is the French social security contribution collection organization. Employers have to register with URSSAF in order to administer employee-related social contributions in the form of pensions, family allowances, and health care.

Value Added Tax (VAT)

The VAT registration is compulsory for companies if their turnover for commercial and hotel services is more than EUR 85,800, or other services more than EUR 34,400 per year. VAT registration is administered by the local tax authorities (Service des Impôts des Entreprises).

Pay As You Earn (Prélèvement à la Source)

France has a source deduction scheme under which income tax is deducted directly from the employee’s wages by the employer and remitted to the government monthly.

Social Security Contributions

All employers are required to contribute to social security for their employees in terms of pensions, medical care, unemployment benefits, and work-related injury compensation.

Workplace Pensions

French employers are required to make supplementary pension schemes (retraite complémentaire) through institutions such as AGIRC-ARRCO. These are in addition to the minimum requirement of public pension and need to be split between the employer and the employee.

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Employment Relationship

• Permanent Employment

According to the French Labor Code, CDI (Contract à durée Indéterminée; Indeterminate Duration Contract) is a contract with no end date, also known as a permanent employment contract. The indefinite term contract (CDI) may be oral, verbal, or implied. If the agreement is verbal, the employer is obliged to provide the employee a written document containing information contained in the statement addressed to the URSSAF (Unions de Recouvrement des Cotisations de Sécurité Sociale et d'Allocations Familiales; the Organizations for the Collection of Social Security and Family Benefit Contributions) while hiring an employee. Permanent employees are entitled to various benefits such as paid maternity leave, paternity leave, adoption leave, sick leave, annual leave, etc.

• Fixed-Term or Specific-Purpose Contracts

In France, employment contracts are not generally required to be written, but certain forms of employment contracts must be in writing. Both fixed-term contracts and temporary work contracts must be written (failing to do so, the contract will be qualified as an open-ended contract. Furthermore, part-time contracts (even open-ended ones) need to be written, and a variety of clauses need to be written (ex. non-compete clauses). The employment contract exists as soon as a person (the employee) undertakes to work, for remuneration, on behalf and under the direction of another person (the employer). Only a CDI (Contract à Durée Indéterminée; full-time permanent contract) can be unwritten, all others need to be in writing. When the employee is a foreigner, he may request a translation in his language, both versions being binding, and in case of discrepancy between the versions, the one written in the employee’s language shall prevail. A written contract is necessary when: An applicable collective bargaining agreement (CBA) requires it. It is a fixed-term, part-time, or temporary contract. It is an intermittent employment contract. It is an apprenticeship employment contract. It is a professionalization employment contract. It is a contract with the employers' group. It is a specific contract provided for people in difficulty, in particular, the single integration contract.

• Temporary Employment Contratcs

According to the French Code of Employment, conditions for a TWA (Contrat de Travail Temporaire ou d'Intérim; a temporary or agency job contract) are almost the same as for a CDD (Contrat à Durée Determinée; a fixed-term contract) The exception for a TWA is that there are three parties involved: the employer, the employee, and the employment agency. A temporary work agency is a natural or legal person providing temporary workers to companies. Companies can use temporary employees only for short-term activities such as: Replacement of absent workers To deal with a temporary surge in activity Seasonal work, or sectors that do not traditionally hire on a permanent basis Replacement of a manager of a craft, industrial or commercial enterprise Replacement of a business owner The setup of a TWA requires specific administrative authorization. At the end of the contract, the employee has the right to a bonus, which should be at least 10% of the total gross salary. In general, labor law in France ensures equal treatment in terms of remuneration and other working conditions.

Probationary Period

In France, the trial period (as opposed to the "probationary period" which only applies to promoted employees) allows the employer to assess the skills of the employee at work, particularly in view of their experience, and the employee to determine whether the new job suits them. Permanent employment contracts have a trial period with the following maximum limits for different categories of workers (including renewals): 4 months for workers and employees 6 months for supervisors and technicians 8 months for executives Fixed-term contracts cannot have a trial period that exceeds 2 weeks for any contract lasting 6 months or less and 1 month for contracts lasting longer than 6 months. Typically, the trial period is 1 day for each week of the contract’s duration up to the maximum. Temporary workers also have limits on probationary periods: Two days when the contract is signed for 1 month or less Three days when the contract is signed for more than 1 month and maximum 2 months Five days when the contract is signed for more than 2 months Probationary periods longer than 1 week require a notice period.

Working Hours

The statutory working hours are 35 hours per calendar week or 7 hours per day. Employees are permitted to work overtime on either a one-off basis or regularly. Employers should be cautious when employees work more than 39 hours a week because the maximum amount of overtime an employee may work is 220 hours per year. There are more flexible systems for autonomous employees and those employed as executives, but the employer must track the hours worked accurately. Furthermore, an exemption from most working time and rest-related regulations is allowed for “managing executives,” but this is exceptional and rarely accepted by employees. The hours worked by a nighttime employee cannot exceed 8 per day (or 40 per week), except under certain circumstances authorized by a labor inspector.

Holidays / PTO

• Statutory Holidays

2026

January 1 - New Year's Day
April 6 - Easter Monday
May 1 - Labor Day
May 8 - WWII Victory Day
May 14 - Ascension Day
May 25 - Pentecost Monday
July 14 - Bastille Day
August 15 - Assumption of Mary
November 1 - All Saints' Day
November 11 - Armistice Day
December 25 - Christmas Day

2027

January 1 - New Year's Day
March 29 - Easter Monday
May 1 - Labor Day / May Day
May 6 - Ascension Day
May 8 - WWII Victory Day
May 17 - Pentecost Monday
July 14 - Bastille Day
August 15 - Assumption of Mary
November 1 - All Saints' Day
November 11 - Armistice Day
December 25 - Christmas Day

• Paid Annual Leave

According to the Employment Code of France, full-time employees earn 2.5 days of annual leave every working month. The total duration of annual leave cannot exceed 30 working days in a year. Employees under 21 years with dependent children are granted two extra days of leave per child. The annual leave in France runs from June 1 to May 31 of the following year, although this can be changed by collective agreements. Annual leave cannot be replaced by compensatory allowance. Employees are paid leave allowance according to their average salary. According to a French Court of Cassation ruling of September 2025, when an employee falls ill during paid leave and properly notifies the employer of the sick leave, the days of paid leave that coincide with the sickness must be carried over and can be taken later. Employers must update leave administration policies to allow rescheduling of annual leave in such cases. The duration of the annual leave used at one time cannot exceed 24 working days. Leave of 12 working days or fewer must be continuous.

• Sick Leave

Employees are entitled to paid sick leave after working for at least 1 year in France. The Labor Code, however, does not mention a specific number of days of sick leave. If the illness requires an absence from work, an employee's doctor must provide a sick leave certificate (avis d'arrêt de travail), which has to be forwarded to the Social Security authorities and the employer within 48 hours of the original medical appointment; otherwise, the employee may risk losing the right to paid medical leave. Social Security funds the allowance for sick leave, but employers may choose to pay additional sick pay. The general principle is that an employee with at least one year of service with the company is entitled to paid sick leave in the event of sickness and the provision of a sick leave certificate from the medical officer. The period for which an employee is paid during sick leave varies according to the employee's tenure with the organization and the total duration of absence. In case of an accident at work or an occupational disease, sick leave allowance is paid from the first day of absence. In the case of ordinary illness, non-professional, or commuting accidents, it begins from day eight. In the case of ordinary illness, non-professional, or commuting accidents, payment begins from day 8. This allowance is paid as follows: During the first 30 days, 90% of the employee's daily remuneration From day 31, 66% of the employee's daily remuneration The amounts are paid by Social Security (50% of the employee's daily remuneration), and the employer contributes an additional supplement to reach the figures above.

• Maternity Leave

In France, workers are entitled to 16 weeks of maternity leave and may choose to take 6 weeks of leave before the delivery and 10 weeks after the delivery. 8 weeks of maternity leave are compulsory, of which at least 6 weeks must be taken after childbirth. Maternity leave may be extended on medical grounds arising out of the pregnancy by a maximum of 2 weeks before and 4 weeks after the birth. Maternity leave is increased to 34 weeks for twin births and 46 weeks for triplet or more births. From the third and subsequent births, the maternity leave is increased to 26 weeks: 8 weeks before and 18 weeks after childbirth. During the term of maternity leave, employees are paid a maternity allowance which is equal to the average daily wage (100%) of the 3-month period preceding prenatal leave up to a ceiling of EUR 4,005 (Euros) a month after deduction of the employee's share of statutory social security contributions and taxes. The maximum amount of the daily maternity allowance is EUR 104.02 per day before deduction of the employee's share of statutory social security contributions and taxes of 21%. Maternity leave is treated as an actual working period for determining the duration of paid leave and for legal or conventional rights acquired by the employee with respect to her seniority in the company. An additional birth leave is created by the 2026 Social Security Financing Act, effective January 1, 2026. It is in addition to maternity, paternity, parental, and adoption leave. Each parent may take the leave simultaneously or alternately with the other. The leave duration is, at the parent's discretion, 1 or 2 months. Dismissal is prohibited during pregnancy, during maternity leave (whether or not the worker uses the right to take the leave), 10 weeks after a miscarriage of a 14th week or later pregnancy, as well as four weeks after the end of maternity leave.

• Paternity Leave

Paternity and childcare leave is for a total of 25 calendar days or 32 calendar days in the event of multiple births. This leave consists of 2 periods: A compulsory first period of 4 consecutive days immediately following the birth leave (3 days), which can be extended to up to a maximum of 30 days in case of immediate hospitalization of the child after birth A second period of 21 days, or 28 days in the event of multiple births, which can be split into 2 periods of at least 5 days. It must be taken within 6 months of the birth of the child Employers must pay 100% of the employee's salary during the first 3 days of birth leave. After that, social security pays paternity allowances. During paternity leave, employees are paid a paternity allowance from the state of 100% of earnings up to a ceiling of EUR 4,005 (euros) a month. The maximum amount of the daily allowance paid during paternity and childcare leave is EUR 104.02 per day, from which 21% is deducted for social security contributions. Fathers cannot be dismissed from employment in the 4 weeks following the birth of their child and are also allowed the right to additional paid leave when the mother is pregnant in order to attend three obligatory exams. Effective July 1, 2025, male employees are entitled to leave in order to receive medical treatments for infertility. This leave is also available to their wife or partner who wishes to accompany them. Employees are also entitled to leave to attend the mandatory interviews required for approval in adoption proceedings. Effective July 1, 2026, the employed father, as well as, where applicable, the employed spouse or partner of the mother of a child born or adopted on or after January 1, 2026 (or born before that date but whose birth was due on or after January 1, 2026 ) are entitled to additional paternity and adoptive leave of 1 or 2 months, depending on the parent's choice. This "additional birth leave" can be taken from July 2026 onwards. This additional leave must be taken within 9 months of the child's birth.

Termination of Employment

• Notice Period

Under the employment law of France, the termination of an employment agreement by either of the parties must be preceded by a notice period during which the contract remains in effect and binding on both parties. The requirement of prior notice is provided by the law, particularly in cases of resignation, dismissal (except in cases of gross and willful misconduct of the employee), or voluntary and involuntary retirement. Except in instances of gross misconduct (which may permit an immediate dismissal), the employer must comply with applicable notice periods. For a period of continuous employment of less than 6 months, the duration of the notice is determined by the law (where some specific text exists), the collective convention, or, failing that, by the practices practiced in the locality and the profession; For a period of continuous employment between 6 months and 2 years, the statutory minimum notice is 1 month. For a period of continuous employment of more than 2 years, the statutory minimum notice is 2 months. Any applicable collective bargaining agreement or employment contract may increase the statutory minimum. During the notice period, an employee continues to work. The employer may waive this obligation but must pay the employee's salary and holiday pay on up to the end of the notice period.

• Severance Benefits

Under the labor law of France, severance pay is only awarded if: The employer terminates an indefinite-term contract for a reason other than serious or gross negligence The employee has worked in the company for at least 8 months Severance pay depends on the employee's length of service and the relevant collective bargaining agreement (CBA) provisions. It is generally calculated based on an employee's average salary (often including bonuses as well as basic salary) during the last year of employment (or the last 3 months if this is more favorable to the employee). Statutory severance pay is calculated as follows: A quarter of a month's salary per year of service for up to 10 years A third of a month's salary per year of service of more than 10 years Statutory severance pay is not subject to income tax. However, it is still subject to social security contributions. Employer-initiated terminations of CDI contracts or compulsory retirement carry an additional social security contribution paid by the employer.