An alternative to the creation of a branch or a subsidiary in France is to hire a sole employee with the status of a “représentant de firme étrangère”, i.e. representative of a foreign company.
No need for a French legal structure. Investments are limited to drawing up a labour contract and settling social contributions in France. No further tax is due. The executive working on behalf of the foreign company has the status of an employee reporting to a foreign company. This status can also be selected for foreign companies’ employees undergoing a training course organized by a partner company in France (provided they have the status of detached employees and their parent company settles all the payroll charges).
Formalities: a simple hiring declaration as a representative of a foreign firm, filed with URSSAF (French social organism) together with a labour contract drawn up according to French law. The French authorities will check the labour contract and the existing subordination link between employer and employee, to make sure that there is no actual company.
As a French accounting firm, Primexis manage more that 150 representatives of foreign companies in France and handle all the related administrative work, from preparation of pay slips up to declarations and payment of social contributions.
