BANNIERE PAYROLL SERVICES

You want to develop your activity in France?

France is one of the major economic powers in the world (the sixth largest) and has a financial position that reflects an extended period of growth. Today, the country enjoys a positive atmosphere across different sectors so there is no doubt that it is well established. Indeed, the GDP is projected to trend around 2983.81 billion USD in 2020 according to tradingeconomics.com

‘Doing Business’ states that France is situated in the category of high income. Besides, it has achieved a high standard of living and quality of life due to inclusive social security systems (unemployment benefits, supplementary benefits and redistributive policy) and access for all the population to healthcare and basic goods and services such as water, energy, quality food and education.

Any individual who resides in France is also guaranteed a minimum income and essential services that take the form of welfare, supplementary benefits and free public services.

In the same way, the country focuses big efforts in promoting business, and it redistributes wealth across the nation. For example, former industrial areas get funds to finance their redevelopment.

Since France has rather a solid economy and sophisticated consumer base, many businesses are interested in this market. In fact, two out of three foreign investors consider the French market as one of the most attractive in the world.

The nation always strives to support businesses and workers.

Government support for businesses

The French government is highly committed to supporting business. It offers subsidized or interest-free loans for some companies, grants for physical investment projects and Research & Development, reduced real estate costs, government guarantees, exemptions from employer social security contributions in some cases and it can also cover certain expenses such as training costs for new employees.

Moreover, support for innovation, research and development in the private sector is a priority for the nation. This support is chiefly provided by France’s research tax credit, which is calculated at 30% of annual research expenditures on R&D generation carried out in France. Since 2013, the research tax credit has been extended to encompass innovation spending by SMEs of up to €400,000.

However, even when all these facilities, establishing a business often demands much money and time, which is why many professionals decide to offer their services through umbrella companies and keep the benefits of self-employment and traditional employment.

Work in France

The main categories of workers are:

      • Agency workers.
      • Self-employed.
      • Independent contractors.

Benefits for employees in France – social security

French Social Security is an interesting system. The employees’ contribution is among the highest in Europe and in the world, yet it has managed to work well and to guarantee benefits for the population and for workers. Social security in France is divided into four branches: illness, old age/retirement, family and finally work accident and occupational disease. Thanks to the system, the nation offers inexpensive health care for all and interesting retirement benefits.

The Social Security is financed by payments from both employers and their employees and is managed by all social partners which typically are workers unions and companies.

In case of disease, the sickness insurance covers the cost of general medicine, special care and dentures as well as equipment, analysis and laboratory tests, hospitalization and treatment, tests done in public health programs, among others.

If there occurs an accident at work, whatever the cause, if it is connected with the realization of the job and happens to any person employed by the entrepreneur, it should be covered by the accident insurance. The same happens with travel accidents that occur on a route between work and home during a mission on behalf of the employer.

The French government also grant family benefits consisting on allowances granted from the second dependent child, child allowances attributed to parent adopting children, special education allowance and others.

And finally, the benefits of old age or retirement are distributed in the form of pensions paid to retirees.

In general, France keeps its attractiveness very high for entrepreneurs, investors and workers.

Establishing a business often requires a lot of paperwork, money and time invested. Something that helped umbrella companies spread widely was the multiple benefits for both parties, the clients and the consultants. For people interested in offering services in France but lacking knowledge of the payment of taxes and contribution to social security, ABC Portage offers a simpler solution.

Collaborating as a consultant, workers keep autonomy of choosing the work hours as well as work rates, and can focus merely on the service, leaving all administrative tasks to ABC Portage. We will charge the client and issue the invoice to make sure our collaborators get the payment. After taking a fee for their services, we will do calculations of taxes and social security contribution and pay it directly, so the workers can concentrate all their time and efforts in providing the best service.

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