Do I Need a Local Entity to Hire in France?

In France, a "local entity" typically refers to a legally recognized presence that can act as the employer; most commonly a subsidiary or a branch office. This setup allows you (or a provider acting on your behalf) to be recognized locally as an employer and fulfill the country's payroll and employment obligations.

Without a local employing setup, it's generally not possible to do all of the following compliantly: register as an employer and manage mandatory social security processes, run local payroll with the required withholdings and contributions, and issue locally compliant employment terms while administering mandatory employment protections. The French Social Security system outlines employer responsibilities for paying contributions, which is a core part of being an employer in France.

What is Required to Employ Someone in France?

• Local employing entity required to directly employ? Yes (unless using an EOR)
• Payroll registration required? Yes (employer registration + payroll compliance with URSSAF)
• Withholding/tax remittance required? Yes (payroll withholding obligations apply to employment)
• Social contributions required? Yes (employer must pay contributions to URSSAF)
• Local employment agreement required? Yes (written terms are standard in France)
• Mandatory benefits to budget? Yes (statutory leave, social security coverage, and other mandatory entitlements)
• Works council/collective agreements considerations? Often (many roles/sectors are influenced by applicable collective agreements)

Best Options If You're Hiring in France

Can I Hire Contractors Instead of Setting Up an Entity?

Yes, but it can be risky if the relationship looks like employment.

Contractors don't require you to set up a local entity in the same way direct employment does, but France has strong worker protections, and misclassification can create real exposure if the contractor is effectively working like an employee.

Authorities typically look beyond the contract and assess how the relationship works in practice, especially whether the worker is operating independently or is integrated into your business.

The misclassification risk tends to be higher if:

• the work is exclusive (or close to it)
• you control hours, location, tools, or how the work is done
• the role is core to the business and the worker is embedded like an employee (managerial oversight, internal meetings, org chart)

How Long Does Entity Setup Take And What Does It Cost?

Typical entity setup timeline: It often takes 4–8 weeks to set up an entity in France, depending on registrations required.

Ongoing cost categories (entity route):

• Accounting, bookkeeping, and statutory filings: Estimated €300–€800 per month ($350–$950)
• Payroll provider: Estimated €20–€60 per employee per month ($23–$70)
• Employer registrations and recurring compliance: Varies by complexity
• Corporate tax filings and annual reporting: Estimated €1,500–€5,000 per year ($1,750–$5,900)

EOR cost components (no-entity route):

• A per-employee EOR service fee (from $399 p/month with Playroll)
• Pass-through statutory costs (e.g., employer social security contributions, mandatory benefits administration)
• Any optional benefits you choose to provide beyond statutory minimums

How an Employer of Record Can Help You Hire in France

Hiring in France can be complex, but it doesn’t have to require setting up a local entity or taking on long-term overhead. With an Employer of Record like Playroll, you get a simple, predictable way to hire compliantly while keeping costs transparent and under control. We help you:

• Hire employees in France quickly without establishing a local entity, eliminating incorporation costs, ongoing administration, and exit complexity.
• Stay fully compliant with local payroll, tax, and employment regulations with Playroll’s payroll services.
• Control your total employment costs, with a clear monthly EOR service fee (from $399 per employee).
• Focus on growing your business, while we manage contracts, payroll, compliance, and labor law obligations end to end.
• Scale up or exit the market easily, without the financial or legal burden of closing a local entity.