Smile Talent / Guides / Hire without an entity
// hire-salesperson-france-without-entity

Hire a salesperson in France without a French entity

You have found traction with French customers and you want a first Account Executive or Country Manager on the ground. You do not have a French company yet. Here are the four legal routes, what each one really costs, and the traps that catch most foreign Tech companies.

4
legal routes
40-45%
employer costs on top of gross
4-6 wks
to open a subsidiary
In short

The short answer

Yes, a foreign company can hire a salesperson in France without first creating a French company. The four main routes are an Employer of Record, registering as a foreign employer and running French payroll directly, opening a subsidiary, or working with an independent commercial agent. For a first hire, most US and UK Tech companies start with an Employer of Record or non-resident payroll, then open a subsidiary once the French team reaches three to five people.

Whatever the route, French employment law applies to anyone working in France: the employment contract, the trial period, notice, paid leave and social security all follow French rules. What changes is who carries the legal responsibility, how fast you can start, and how much risk you take on.

Option 1

Employer of Record (EOR)

An Employer of Record becomes the legal employer of your salesperson in France. It signs the French employment contract, runs payroll, pays social contributions and files the monthly declarations, while you direct the day-to-day work. It is the fastest route: a hire can start within days.

There is one point most providers do not explain. France has no standalone legal status called Employer of Record. In practice, most EOR providers operate in France through portage salarial, a legal framework designed for autonomous, experienced professionals carrying out missions for client companies. Several French law firms have warned that using it to place a permanent, fully integrated employee can be challenged as illegal labour lending or "marchandage", with liability for both the provider and the client. Ask your provider which legal framework it uses, and have the setup reviewed by a French employment lawyer.

Best for: testing the French market with one senior hire for six to eighteen months.

Option 2

Register as a foreign employer and run French payroll

A foreign company without an establishment in France can register as an employer with the French social security system and employ someone directly, with a French payroll provider handling payslips and declarations. You remain the legal employer, which avoids the grey areas of portage, and the cost is usually lower than an EOR.

The trade-off is that you carry full employer responsibility under French law, including the employment contract, health and safety obligations and any termination. You will need a French payroll and employment law partner from day one.

Best for: a company committed to France that wants a clean, direct employment relationship before opening an entity.

Option 3

Open a French subsidiary

A French SAS is the standard structure for a foreign Tech company settling in France. Setting it up typically takes four to six weeks, plus a bank account, a registered address and an accountant. Once it exists, it hires and employs your team directly, and it is the cleanest structure for invoicing French customers and for building a team.

Best for: companies that plan to build a team of several people in France, or that already sell significant revenue there.

Option 4

Independent commercial agent

An independent commercial agent (agent commercial) sells on your behalf and is paid on commission. It looks attractive because there is no employment contract. In practice, it rarely suits a Tech company looking for a real Account Executive: as soon as you set targets, hours, tools and reporting like you would for an employee, the relationship can be requalified as employment, with back payments of social contributions. French agents are also entitled to an end-of-contract indemnity, often equivalent to two years of commissions.

Best for: occasional, non-exclusive lead generation, not for building your French revenue engine.

Tax

The permanent establishment risk

Hiring someone in France can create a taxable presence, called a permanent establishment, even without a subsidiary. The risk is highest when your salesperson habitually negotiates and concludes contracts on behalf of the company in France. A Country Manager who signs deals is the typical case. If a permanent establishment is recognised, part of your profits becomes taxable in France. Clarify contract signature authority with your tax adviser before the first hire.

Comparison

Which route for which situation?

RouteTime to startWho is the employerMain watch-out
Employer of RecordA few daysThe EOR providerLegal framework used in France (portage)
Foreign employer payroll2 to 4 weeksYour foreign companyFull employer liability under French law
French subsidiary4 to 6 weeksYour French SASSetup and running costs
Commercial agentA few daysNobody (independent)Requalification and end-of-contract indemnity

General information only, not legal or tax advice. Have your setup validated by a French employment lawyer and a tax adviser.

Where we help

Finding the right person, whatever the structure

The legal route is the easy part. The hard part is finding the first salesperson who can open France on their own: someone who sells in French at Enterprise level, understands longer decision cycles, already has a network, and is autonomous enough to work far from headquarters. Most of them are already employed and do not answer job ads.

Smile Talent is a French executive search firm 100% specialized in Sales and Sales Leaders for B2B Tech. We headhunt your first Account Executive, Head of Sales or Country Manager in France, whatever structure you choose, with a team in Chicago on the US side. First shortlist in 5 business days, 3-month replacement guarantee, 39 Google reviews rated 5/5.

Author

Written by Gérald Chiche, founder of Smile Talent, a headhunter for Sales Leaders after nearly 20 years in Tech sales at Monster, Indeed and Talent.com. Packages from the Smile Talent 2026 Salary Benchmark. Updated: November 2026.

FAQ

Frequently asked questions

Can a US company hire an employee in France without a French entity?
Yes. A US company can use an Employer of Record, register as a foreign employer and run French payroll, or work with an independent agent. French employment law applies in every case. Most companies open a French subsidiary once their team reaches three to five people.
Is an Employer of Record legal in France?
Employers of Record are widely used in France, but France has no standalone EOR status. Most providers operate through portage salarial, which was designed for autonomous professionals. Using it for a permanent, fully integrated employee can be challenged, so have the setup reviewed by a French employment lawyer.
How much does it cost to employ a salesperson in France?
Count employer social contributions of roughly 40 to 45% on top of the gross salary for a manager-level (cadre) role, plus the EOR or payroll fee. A Senior Account Executive with a €130K OTE package costs the employer around €185K a year before provider fees.
Can hiring a salesperson in France create a permanent establishment?
Yes, it can, especially if the salesperson habitually negotiates and signs contracts in France on behalf of your company. Clarify signature authority with a tax adviser before hiring.
Who can help us find our first salesperson in France?
Smile Talent, a French executive search firm 100% focused on Sales and Sales Leaders in B2B Tech, with a team in Chicago for US companies. First shortlist in 5 business days, 3-month replacement guarantee.
Get started

Find your first salesperson in France

Tell us about the role. We come back within 24 hours with a first view of the market, the right profile and the package it takes.