If you are looking to expand your operations to a strategically located foreign country in Europe with a strong economy and government support, you may want to consider branching out into the French market. The country holds a crucial position in the EU, and French law encourages investment and business opportunities.
Below, we detail some of the biggest benefits of bringing your business to France. Then, we also discuss how a global PEO can make all the details of that transition faster and more efficient.
The Rise of Employment Opportunities in France
With Marcon’s re-election in April 2022, France continues on a growth trajectory and positive economic reform. Since then, Macron has been keen to introduce laws and legislation that will encourage and support investments and startups in the country.
In his first term, Macron implemented tax cuts for employees and employers. His government also secured investments from some of the largest companies in the world like Facebook and Google. The current climate in France is open and eager for international entrepreneurs and businesses from overseas looking to expand into the country.
Six Reasons for Bringing Your Company to France
1. A Highly Talented Workforce
France has consistently ranked in the top ten countries for hourly productivity. Consequently, its workforce is renowned for being hard-working, productive, and highly educated.
The country is also famous for having one of the highest percentages among EU countries for engineers graduating annually. The percentage of those over 25 with higher education qualifications has been rising steadily and was at 81.5% in 2021. As a result, the French workforce is full of highly skilled professionals and independent contractors that can be valuable to you and your company.
2. A Digital Work Environment
In the past decade France has firmly established itself as a strong force in e-commerce. In 2021 online product sales were 7% higher than in 2020, and e-commerce made up 14.1% of all retail trade.
Accordingly, e-commerce has consistently grown from year to year. France is a leading country for the implementation and usage of 5G. The internet bandwidth in France is ranked in the top ten fastest in the world. As a result of these factors, the country is a suitable market for digital and electronic trade and commerce companies.
3. A Competitive Tax System
In recent years, corporate tax in France has been decreasing; in 2021, it went down from 27.5% to 26.5%. As of January 1, 2022, the corporate tax is 25% regardless of company profit.
4. A Leading Force in Research and Development
Among OCED countries, France offers one of the most generous tax incentives for R&D investments. Companies can receive a tax credit equal to 30% of their R&D expenses, up to 100 million euros, and then 5% after that amount. Innovators can also receive a tax credit for their innovation expenses, 20% of eligible outlays up to 400,000 euros annually.
In general, should your company be in research and development you could benefit significantly from the country’s innovation-friendly legislation.
5. A Strong Entrepreneurial Spirit
France is home to Station F, the world’s most extensive startup campus. In 2021 the government launched La French Tech. This initiative brings together the government, investors, and startups, making information and guidance easier for those who want to start businesses and legal entities in the country.
995,868 new companies were created in 2021, 17.4% more than in 2020. Additionally, foreign investment in 2021 created 45,008 jobs, which is an all-time high.
The French Tech Visa also allows non-EU startup investors, founders, and employees to get a residence permit for working in France quickly and easily.
6. A Key Position in Europe
Finally, France is in the top ten destinations for business conferences, tourists, and students. It is also one of the pillars of the EU and shares borders with some of the strongest economies in Europe. Having your company in France can give you access to the French consumer market. With this support you can easily enjoy the vast and diverse EU consumer population.
How Global PEO Services Can Help You Set Up in France
Once you’ve decided to bring your company into France, you might find the volume of legalese and transition details overwhelming and complicated. Failure to comply with the local laws as an international employer can sometimes result in having to pay expensive fees or fines or even endangering the status of your company.
INS Global offers Professional Employer Organization (PEO) and global Employer of Record (EOR) services to make your overseas human resources experience as stress-free and simple as possible.
An international PEO partner can take care of recruitment and hiring. This can guarantee that all your employees fully comply with local labor laws.
Partnering with a France PEO to handle your payroll, ensure compliance, and save costs by streamlining your HR and payroll process. Ensuring that your employees receive their salaries accurately and on time is crucial for your company to run smoothly. All the paperwork and communications regarding employee benefits, compensation, and taxes can be handled expertly by our trained legal team.
INS Global has more than 15 years of experience working with companies across industries worldwide. Our staff is dedicated and passionate about getting you set up in France in the way you need to succeed.
Contact us here today to learn more about how INS Global can help you achieve your global expansion goals.