France: Operating a Business

Sole propietorship ("entreprise individuelle")

Number of partners: 1 person only.
Capital (max/min): No minimum capital required.
Shareholders and liability: Unlimited liability.

Limited liability company (SARL)

Number of partners: Between 1 and 100 partners/shareholders maximum.
Capital (max/min): Minimum: EUR 1
Shareholders and liability: Limited to the amount of capital contributed.

Private limited company under sole ownership (EURL)

Number of partners: 1 person only (legal or natural).
Capital (max/min): Minimum: EUR 1
Shareholders and liability: Limited to the amount of capital contributed.

Public limited company (SA)

Number of partners: Minimum 2 shareholders (7 for listed companies)
Capital (max/min): EUR 37,000, of which half as to be paid-up at the moment of incorporation.
Shareholders and liability: Limited to the amount of capital contributed.

Simplified joint-stock company (SAS).

Number of partners: Minimum 1 natural person or legal entity with no maximum.
Capital (max/min): No minimum capital required.
Shareholders and liability: Limited to the amount of capital contributed.

General partnership (SNC).

Number of partners: Minimum 2 partners
Capital (max/min): No minimum capital required.
Shareholders and liability: Liability is joint and indefinite.

Limited joint-stock partnership (SCS)

Number of partners: 2 partners: the active partners and the silent partners
Capital (max/min): No minimum required.
Shareholders and liability: The active partner: joint and indefinite;
The silent partner: limited to the amount of capital contributed.

Business Setup Procedures

The Competent Organisation

The Portal for the Company Formalities Centres
The Register of Commerce

For Further Information

Consult the Doing Business Website, to find out about procedures to start a Business in France.
Registry of the Tribunal de Commerce de Paris, in French.

Financial Information Directories

Dun & Bradstreet - Worldwide directory with financial information on businesses

Infogreffe - Certified financial information on companies

Manageo - French companies directory

Societe.com - Company directory in France.

Verif.com - Financial information on French companies

Recovery Procedures

Principle

In the framework of the safeguard scheme, two legal decisions are generally made:
- being put into receivership, a state where payment stops, it is impossible to face the liabilities due with the current assets.
- compulsory liquidation, a persistent state where payment stops and receivership is manifestly impossible.
Since the law of July 26, 2005, it is possible for a buyer to make a takeover bid for a company once the safeguard or receivership procedure has begun.

Minimum Debt-to-Capital Ratio Triggering Liquidation

No minimum

Bankruptcy Laws

The Commercial Code

Reorganization and Rehabilitation Laws

The economic initiative Act 2003-721 of 1 August 2003
Company safeguard scheme: Commercial Code art. L. 626-1 et seq. and R. 626-1 et seq. (in french)

For Further Statistics

INSEE statistics on work

For Further Information About the Labour Market

ILO, International Labour Organisation
Studies and research of the Ministry of Employment

Opening Hours

 

• Legal Weekly Duration

35 hours

• Maximum Duration

Maximum duration : 10 hours per day and 48 hours per week.

• Night Hours

Between 9pm and 6am.

Working Rest Day

The weekly rest day of at least 24 hours is Sunday; this day must be observed but permanent dispensations may be granted for particular activities.

Paid Annual Vacation

2 and a half working days of paid vacation a month; working days are all weekdays except Sunday and public holidays.
This equals 30 days or 5 weeks vacation a year.

Retirement Age

67 years of age, but as soon as the employee has paid enough into the compulsory retirement scheme, she/he can leave her/his job any time after age 62.

Child Labour and Minimum Age For Employment

16 years old

Informal Labour Market

About 6% of the population say they have worked without being declared every year. For further information consult the European Commission's study of undeclared work.
Undeclared work is above all made up of hours of work only partially declared or undeclared overtime.

Pay

Minimum Wage

In 2022, the minimum gross monthly wage is € 1,603.12 according to Service Public (lastest available data).

Average Wage

In 2020, the average net annual wage reached € 29,070 according to INSEE (latest available data).

Other Forms of Pay

• Pay For Overtime

Between the 36th and 39th hour an increase of 25%.
Between the 40th and the 43rd hour an increase of 25%.
From the 44th hour an increase of 50%.

• Pay For Rest Days Worked

According to the collective agreements, except May 1 which is increased by 100%.

• Pay For Night Hours

For one hour of night work if it is for less than 25 nights a year: an increase of 25%
For one hour of night work if it is for more than 25 nights a year: 10%

• Pay For Overtime at Night

The same as for overtime.

Social Security Costs

The Areas Covered

Health insurance (medical care, maternity, disability, death), retirement pensions, family allowances, unemployment benefit.

Contributions

Contributions Paid By the Employer: Employer contribution varies depending on the size, type and location of businesses to about 50% of gross pay.
Contributions Paid By the Employee: About 20% of the gross wage

Competent Organization

URSSAF

Recruitment

Method of Recruitment

More and more applications are made via Internet. The method of recruitment in France is by face to face interview.

Recruitment Agencies

The ANPEis the official employment agency.
There is also a specialized agency for managers, the APEC.
Recruitment agencies: Michael Page, Expectra, Robert Walters etc.
Agencies specialized in temporary work: Randstad, Adecco, etc.

Recruitment Websites

Monster
Indeed

The Contract

Dispute Settlement

Social Partners

Employer Associations

CPME - Confederation of Small and Medium Enterprises
MEDEF - Leading Network of Entrepreneurs in France

Social Dialogue and Involvement of Social Partners

In France negotiations take place at the national, sectorial and company levels. French labour law provides an extensive institutional role for employee representatives and for organised labour. Strikes are common in France and are part of the social fabric.

Unionisation Rate

Today 8% of French employees belong to a union (5% in the private sector and 14% in the public sector). That is twice as few as 25 years ago, yet the unions remain strong and active.

Labour Unions

The CGT, general labour confederation
The CFDT, French democratic labour confederation
FO, workers' union
The CFTC, French Christian workers' confederation
The CFE-CGC, management confederation-general confederation of managers
The UNSA, national union of autonomous unions

Regulation Bodies

The Ministry of Labour, Employment, Professional Training and Social Dialogue