Hiring in France as a US Company: What You Need to Know

US companies can hire employees in France in one of three ways: setting up a local entity (such as a SAS), using an Employer of Record (EOR) delivered in France through a legal framework called portage salarial, or using Non-Residential Payroll (NRP). Setting up an entity typically takes 4-6 weeks and adds ongoing compliance overhead. Portage salarial lets a US company engage someone in France in days without opening an entity. An NRP lets the US company remain the legal employer while a local partner handles payroll compliance.

French employment law is heavily protective of employees, and collective bargaining agreements often apply on top of the labour code. Total hiring costs typically run 40-45% above gross salary in employer social contributions alone, among the highest in Europe.

France is a natural next step for many US companies expanding into Europe. It is a large, skilled labour market, strong infrastructure, and a central position in the EU. It’s also one of the more heavily regulated labour markets a US employer will encounter. Between the national labour code, sector-specific collective bargaining agreements, and works council requirements, hiring in France looks very different from hiring in the US. This blog covers what US companies actually need to know before hiring their first employee in France.

EOR and portage salarial

If you’ve researched hiring elsewhere in Europe, you’ve likely come across the term “Employer of Record” (EOR) as the standard route to hiring without a local entity. France uses the same underlying idea, but it operates through a specific, legally regulated structure called portage salarial.

Under portage salarial, the professional (the salarié porté) signs an employment contract directly with a portage company, which becomes their legal employer. The professional performs an agreed assignment for the client, while the portage company acts as the legal employer and manages the French employment and payroll framework. The portage company invoices the client for the agreed services and pays the professional their salary after the applicable contributions and management fees have been deducted.

For a US company, this provides a way to engage a professional in France without first setting up a French entity, while the employment-related responsibilities are managed locally within the French portage salarial framework. One practical difference worth knowing upfront is the type of employment contract used. Under French portage salarial, both CDI (open-ended) and CDD (fixed-term) contracts can be possible, although CDD contracts are subject to stricter legal conditions.

Three ways to hire employees in France from the USA

Set up a local entity

Registering a French entity, most commonly a SAS (Société par Actions Simplifiée), gives a US company full control over hiring, banking, and operations in France. It’s the right long-term choice for companies planning a significant, permanent French presence. The trade-offs: entity setup typically takes 4-6 weeks. A SAS can technically be formed with as little as €1 in share capital, though most companies capitalize it more realistically to support operations. Beyond setup, an entity brings ongoing obligations, French corporate tax filings, statutory accounting, and a registered local address, regardless of how many people you employ.

Use portage salarial

Portage salarial can provide a practical route for engaging an eligible professional in France without establishing a local entity. Parakar acts as the legal employer under the portage salarial framework and manages the local employment contract, payroll, tax withholding, statutory benefits, and related administration. The professional carries out the agreed assignment for the client, while the client remains responsible for its operational decisions and coordinates employment-related matters with Parakar.

Once Parakar has received the complete information package and required documents, onboarding generally takes approximately two weeks, subject to timely approvals, signatures, payment, and any applicable immigration requirements. This can make portage salarial a suitable option for companies making a first hire in France, building a small team, or exploring the French market before establishing a local entity.

Use NRP (Non-Residential Payroll)

Non-Residential Payroll (NRP) allows a US company to register as a foreign employer and run French payroll without establishing a local entity. Unlike portage salarial, the US company remains the legal employer and retains responsibility for the employment relationship. Parakar supports the local payroll process and related compliance administration, helping the company navigate French payroll requirements.

This can be a suitable option for companies that want to employ someone directly in France while relying on local expertise for payroll administration and compliance support.

French employment law essentials for American employers

French employment law starts from a very different baseline than US at-will employment. A few essentials every American employer needs to know:

• CDI vs. CDD contracts Most permanent hires use a CDI (contrat à durée indéterminée, or open-ended contract). Fixed-term CDD contracts exist but are tightly regulated and can’t be used simply to avoid permanent employment obligations. Note that under a portage salarial arrangement, only CDI contracts are offered, so this is worth keeping in mind when setting expectations for how a role will be structured.
• Collective bargaining agreements (conventions collectives): Many industries have sector-wide agreements that set minimum terms and apply automatically based on the company’s business activity, regardless of whether the employer negotiated them directly.
• No at-will termination: Dismissing an employee in France requires a valid legal reason (personal or economic) and a defined procedure, including a formal meeting and written notification. Skipping steps in the process can expose the employer to compensation claims.
• The 35-hour work week: France’s statutory work week is 35 hours, though contracts can go up to a maximum of 39 hours, with those additional 4 hours automatically paid at 125% on the payslip. For executives, France also uses a “forfait jours” arrangement, where compensation is based on days worked per year (typically 218) rather than hours — a setup comparable to “exempt status” in the US.
• Works councils (CSE): Companies above a certain employee threshold must establish a Comité Social et Économique, giving employees a formal voice in company decisions.
• Minimum 25 days of paid vacation: This is a legal floor most employers meet rather than exceed, unlike some neighbouring markets.

Hiring costs in France for American employers

Budgeting for a French hire means going well beyond gross salary. On top of the offered salary, American employers should plan for:

The employer social contribution figure is consistently the single largest surprise for US finance teams building a French cost model. It covers health insurance, pension, unemployment insurance, family benefits, and several other statutory schemes that don’t map onto US payroll tax at all.

Do you need an office to hire in France?

Short answer: no. A physical office is not a legal requirement to employ someone there. Many US companies assume they need local office space before they can hire, but an EOR or NRP arrangement allows fully remote or distributed hiring without any physical presence.

That said, an office can matter for specific reasons: building brand visibility in the French market, supporting in-person collaboration as a team grows, or meeting client expectations in certain industries. If your goal is simply to hire one or a handful of employees, office space is a business decision rather than a legal requirement.

How Parakar helps American companies hire in France

Parakar is a European Employer of Record, payroll, and HR services provider active across 10 EU markets, including France. For US companies, that means:

• Employer of Record services to hire compliantly without opening an entity.
• NRP support for companies that want to remain the legal employer while offloading payroll compliance.
• Local contracts and payroll aligned with French employment law and applicable collective bargaining agreements from day one.
• HR guidance on termination procedures, works councils, and the 35-hour work week.

Whether the plan is one specialist hire or a growing French team, Parakar handles the compliance so the US side of the business can focus on the work itself. Ready to hire your first employee in France? Talk to our experts about compliant hiring options, from Employer of Record to Non-Residential Payroll, without opening a French entity.

Frequently Asked Questions

How can a US company hire employees in France?
A US company can hire in France by setting up a local entity, using portage salarial (France’s version of an EOR), or using Non-Residential Payroll (NRP). An EOR is typically the fastest option, since it doesn’t require opening an entity.

How long does it take to set up a company in France from the USA?
Registering a French entity such as a SAS typically takes 4-6 weeks, including incorporation, registration, and opening a local business bank account.

What’s the difference between an EOR and portage salarial in France?
They achieve the same outcome, hiring someone compliantly without a local entity. However portage salarial is the specific legal framework France uses to deliver it. Under portage salarial, the individual signs a CDI employment contract with the portage company, which invoices the end client and pays the individual’s salary after deducting contributions and fees.

Does a US company need an office to hire employees in France?
No. A physical office is not a legal requirement to employ someone in France. US companies can hire remotely through portage salarial or an NRP arrangement without any local office space.

What are the real hiring costs in France for a US employer?
Beyond gross salary, US employers should budget for employer social security contributions of roughly 40-45%, plus any entity setup or payroll management costs and, in some sectors, obligations under an applicable collective bargaining agreement.

How complicated is it to terminate an employee in France?
Termination in France is more structured than in the US, and many American companies expect it to be costly and complicated as a result. In practice, though, it’s mainly a matter of following the correct procedure with the right guidance. Parakar helps clients manage terminations smoothly and in full compliance with French requirements.

Is every role suitable for portage salarial?
No. Portage salarial is intended for qualified professionals carrying out an autonomous and clearly defined assignment. Eligibility depends on factors such as the nature of the role, the responsibilities involved, remuneration level, and the professional’s right to work in France. Some roles, including certain sales, regulated, or executive positions, may require additional review. Portage salarial is also subject to specific duration and minimum remuneration requirements. Parakar reviews each profile individually to determine whether portage salarial is a suitable option.

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