BENEFITS OF OUTSOURCING YOUR BUSINESS DEVELOPMENT
For a forein company willing to establish a stronger foothold in France (or to start in France).
Not your case? Click here to see the benefits if you are just looking at expanding their Business Development opportunities
FIRST, WHAT ARE THE RISKS?
Of starting your local presence in France by hiring an employee
You already do have customers in France, but since you do not have a French subsidiary (notion of “permanent establishment”), you do not pay income taxes in France.
When wanting to have local presence in France, pretty sure that your tax lawers will raise the question. You will need to consult specialists of French Tax Law to find the most suitable solution….
That’s time and money lost.
And that’s taken from experience
Once you’ve made your decision and found the best solution, you will need to hire a local HR firm (head hunter most likely), brief them and pay them.
Here as well, this process is costly and very time consuming for your and your team
GET A FRENCH SOCIAL SECURITY NUMBER
You will need to obtain from the French Government a registration number (as a Foreign company), that’s for social taxes. Not very complicated, but you need to have somone do it for you.
If you do hire someone in France, in all cases you will need to hire the services of an accountant to do the payroll and declare French social taxes (that you will pay as an employer, regardless of whether you have a subsidiary or not).
FRENCH HEALTHCARE INSURANCE
It is also mandatory for employers to subscribe to a prive healthcare insurance for your employees
Now to all the above, there are alternatives. Companies can do this for you, but the service will also cost you extra!
And obviously, you will need to find office space. Now while co-working spaces are not hard to find, it’s still an additional cost (and paperwork too)
That’s a complicated process, time consuming for your administrative team and which will cost you!
HR POTENTIAL ISSUES
FRENCH LAW PREVAILS
Regardless of the contract you sign with your employee, French labor law prevails (that’s the Law). That’s something you will most likely need to be briefed on by a French lawyers!
Again, time and costs
Doing Business Development takes time, especially for long sales cycles. While French law allows you to provide 2x 3 months (standard) trial period, after that you also need to take into consideration inherent risks of contract termination in France. Recent law as lowered financial risks, but they still exist.
So all in all
That’s a lot of time spent
Lot of money spent
Even before starting your Biz Dev Activities!
THEN, WHAT ARE THE BENEFITS
Of using outsourced Business Development Services
Much lower costs
The easiest way to setup local presence
After a preliminary assessment of your needs and signing a simple consulting contract, I will start right away looking for Business Opportunities for you. We are talking about 2-3 weeks at most!
For the “full service package” which represents doing full business representation for you, my cost will be less than half of the total cost you will encur! And I am just counting the running costs!
All in all, if you are not sure on whether you want to fully invest with a local employee, going through my services is the most cost efficient, and ROI driven investment!
NO RISK AND ROI DRIVEN
No fiscal, or other legal risks. Our relationship is defined in the contract and regulated by the Chamber of Commerce.
My objectives are the same than yours (and so is my remuneration): we need to close deals! Not satisifed, just terminate the consulting contract following contractual terms. No risk of facing changing labor laws!