France’s position in the European market
Major industries in France
There are numerous expanding sectors of excellence within France such as:
- Since 2020, France has been the world’s 6th largest exporter of agricultural and agri-food products, with a market share of 4.3% – before Italy (3.6% in market share) and Canada (3.1% in market share).29
- Technology: France is a major player in new technologies. One of the priority sectors by the governement is undoubtedly Artificial Intelligence. France is the 1st European country for IA investments and well as the 3rd country in the world in terms of IA researchers. 31
- Automotive: the battery sector especially is booming due to a commitment from the government to develop that sector with the Battery Plan. So far 6 gigafactories are going to set up in France and 40 projects related to batteries are being supported by the France 2030 programme (which represents €2.1 billion in financial incentives and €8.2 billion in investment) 32
- The health sector: €90 billion euros was generated in turnover in 2023 with +3,100 companies operating in life science. 33
- The luxury sector: France remains the #1 leading country in the fashion and luxury good sector. In addition,130 of the world’s 270 luxury brands are French. 34
Many of them can be found in Hauts-de-France, it is the biggest automotive region, home to major logistics companies, and is ranked as the third best-performing region for agrifood companies in France.
29 France Agrimer 2024
30 Atout France
Reasons behind Hauts-de-France’s attractiveness for Foreign companies
For the Sixth consecutive year, France is the number one country in Europe for foreign development and investment projects in 2024.8 Hauts-de-France stands out by being the 2nd French Region for foreign direct investments in terms of jobs and the 3rd French region in terms of projects. On a European scale, Northern France is the 10th European region for foreign direct investments in terms of projects in 2024.
8 EY 2025
10 Reuters
11 RFI
How the Made in France is perceived in Europe and in the world?
The Made in France label is seen as a token of quality and is well perceived worldwide. Made-In-Country Index states that France had an index of 81/1001 in 2017. As it were products and merchandise that have been produced in France and meet demanding measures can carry this trademark.
Usleep in a good example of that. They chose to expand their manufacturing plant in Dourges in the Hauts-de-France Region so that they could obtain the Made in France label.
According to Luciano Biondo, Former president of Toyota Motor Manufacturing France:
“Our salespeople say it (the Made in France label) makes a big difference. A car’s origin is often third or fourth on the list of priorities for customers, and French-made vehicles carry a lot of clout—especially in the domestic market.”
Source : 1 Satista
Expanding your business in France
Establishing a business in France is easier with the right partner. By forging a partnership with Nord France Invest – the regional agency for Hauts-de-France – or Hello Lille – the agency for the Lille Metropolis – you can streamline the process of setting up a business in France.
There are five steps to setting up a business in France in terms of administrative procedures:
- Choose the right business structure
- Prepare a draft of the legal notice for your business
- Choose the correct legal status and draw up your charter and bylaws
- Deposit share capital in a bank account
- Complete the company declaration and registration process
Tailored support to set-up in France and in the world?
Investment promotion agencies are staffed with people who are experts in their regional economy. If you want to stay long-term in France, you can benefit greatly from their local knowledge and business expertise. An economic promotion agency such as Nord France Invest or the attractiveness agency Hello Lille can facilitate the process of setting up your company in the Hauts-de-France region. If you need assistance in doing paperwork, finding the right site or getting introduced to the local ecosystem, Nord France Invest and Hello Lille can help you.
Its main benefit is that it centralises everything and serves as a unique entry point. With the Nord France Invest network, you can have easy access to the right people at the right time. And last but not least, our services are provided entirely for free!
For British companies, the UK Business Centre Lille is also available. It is a pioneer initiative which aims to help those facing difficulties accessing the French and EU markets since Brexit. Its goal is to provide tailored support for every step of your project:
- Tax representation
- Customs representation
- Business development
- Legal matters
- Finance/banking
- Logistics
- Retail/ecommerce
- Setting up in Hauts-de-France
Investment promotion agencies provide foreign investors with comprehensive assistance in setting up a business ventures. Business France is national Investment Promotion Agency to set. Nord France Invest provides investors in Northern France assistance in developing their business on our territory for free and 100% confidentially. On the Lille Metropolis level, the Attractiveness Agency Hello Lille can support your project to set up in the Lille Metropolis.
For strategic projects considering to set-up in the Hauts de France Region, we have developed a “setting-up contract” to enable companies to establish themselves seamlessly. The contract gathers in a single document various commitments and support from public authorities dedicated to your investment projects.
This process is unique in France and greatly simplifies the expansion of businesses. It is a moral contract that demonstrates the strong commitment of local authorities in their desire to support businesses as best as possible throughout the setting up process.
The contract includes:
- deadlines for issuing agreements;
- administrative permits;
- recruitment and training support;
- incentives;
- tax exemptions;
The contract will allow you to quickly set up a team dedicated to your project via the state, regional, or local authority. You can reduce deadlines up to seven months instead of 10-12 months for environmental authorisations and building permits. As an employer, the employment and recruitment process can be facilitated via a strong partnership with the national and regional job agencies.
Labour laws in France
Understanding the characteristics of labour laws in France will help you find talent & skills.
The rights of workers
Having an understanding of the French labour market implies that you can optimise your labour structures.
According to French law, an employed person can work 35 hours a week, and any hours after that is considered overtime. This will obviously have implications for companies.
Nord France Invest and Hello Lille can help you make sure that you follow these requirements.
Working hours
The 35-hour work week is more of a benchmark rather than a limit. The employee can agree with their employer to work more hours if the fixed salary makes up for the overtime or if it is offset by bonus paid leave. Even though the workweek is limited to 48 hours, it can go beyond with an authorisation from the inspector general’s office.
An employer can also recruit more workers during peak periods and offer partial days-off if demand is reduced.
Working contracts
At the moment, the minimum gross hourly salary is €11.52. The estimated labour cost in France in cities such as Paris is €34 per hour, which takes into account gross wages and social contributions.13
This will however be different depending on the region. Labour costs in the Hauts-de-France are more attractive than other French regions. An EY study carried out in 2020 gives you key figures about that in different industries:
- Back-office services: 22% lower than the average of our European counterparts and -14% than our French counterparts
- Logistics: 34% lower than the average of our European counterparts and -9% than French counterparts
- Production: 27% lower than the average of our European counterparts and -13% than our French counterparts
- Technology: 20% lower than the average of our European counterparts and -11% than our French counterparts
Source : 13 INSEE
Social protection
French social security relies on mutual insurance contributions between the employee and the employer, which for the employer represents roughly 40% of the employee’s gross salary. However, this will vary depending on the size of the company, its location or even the business structure. 14 They include:
- retirement insurance;
- health insurance;
- family allowances
- unemployment compensations
The social security in France is easily adaptable and flexible for companies provided they choose the correct location and partners.
Trade Unions
Only 11% of workers are members of Trade unions.15 But they are very influential in France. The Trade union’s size will vary depending on how big the company is. Companies exceeding 50 workers have to have trade union delegates. As for companies with 11 to 49 workers, they will require a Social and Economic Committee.16
Source : 15 Worker participation
16 HSF notes
According to Eric Moyère, General Manager, Communication and Business Planning, at Toyota:
“The 3rd reason lies in the commitment and motivation of the teams. To illustrate this idea, every two years, we carry out a satisfaction survey on our network of factories and the Valenciennes site, these last 4 years being the European site which receives the most positive opinions. This can be explained by the quality of social dialogue which can be described as responsible and peaceful.”
Talent and innovation ecosystem in France
Due to its dynamic and innovation-friendly environment, France has 31 of the world’s 500 most powerful companies as well as many competitiveness clusters.17 The Hauts-de-France is a good example of that with thriving sectors such as automotive, agrifood and logistics.
Source: 17 Campus France
France is a dynamic and innovative country that is home to 31 of the world’s 500 most powerful companies along with many competitiveness clusters.17 The Hauts-de-France region is well represented with burgeoning agri-food, automotive, and logistics sectors.
Human capital is one of France’s main assets. A significant proportion of French people attain university qualifications. 51.9% of 25-34-year-olds attained a tertiary qualification in 2023 compared to an average of 47.4% across OECD countries. 20 The synergy between the academic world and businesses makes it possible to carry out concrete R&D projects for the private sphere.
The Hauts-de-France region is a top centre for university education and continuing education. It is the third largest French region for education with more than 250,000 students and seven universities.
Northern France has over 40 specialised training institutions.
Competitiveness clusters in France
France is a strategic country for innovation and favours R&D through public incentives. In terms of public spending for companies’ R&D, France ranks 3rd on a European level and 7th globally in 2022 according to Business France. It also ranks 2nd on a European level in terms of patent registration. 21
France enhances its innovation potential through the creation of clusters.
They are very important because they enable companies to build competitive advantages at commercial and strategic levels.
Overall, there was 53 labelled competitiveness clusters in France in 2025 .22 Seven of the top-performing competitiveness clusters are located in the Hauts-de-France region.
22 Ministry of Economy, Finance, and Industrial and Digital Sovereignty
Competitiveness clusters in Hauts-de-France
- Aquimer: specialised in valuating seafood products through a strong network of stakeholders in the sector
- Bioeconomy For Change: which favours the development of the bioeconomy sector (bioresources, food, bio-based molecules, bio-based materials and bioenergies)
- I-Trans: dedicated to decarbonised and connected mobility and favours collaborative innovation
- Clubster NSL: a network for research and innovation in the health, agri-nutrition and ageing-well industry
- Team2: one of the major stakeholders for innovation in circular economy in terms of strategic metals, organics, minerals, building waste, polluted sites and soils, French engineering and equipment manufacturers for recycling, innovative circular loops
- Euramaterials: cluster dedicated to materials transformation industries
- Cap Digital Hauts-de-France: which offers opportunities for innovative stakeholders in the retail sector to develop collaborations between its members.
These clusters are supported by numerous centres of excellence which provide technological skills such as the Smart Specialisation Strategy (which defines the 8 priorities of the region), the Agence Hauts-De-France (the roadmap to achieve by 2040), as well as regional schools and universities. The focus of these competitiveness clusters is on developing skills in sectors such as retail, nutrition and health, consumer goods, seafood, agricultural resources, and eco-business. Northern France is also a leader in R&D for the plant-derived chemistry sector, the agri-food sector, and the automotive sector.22
21 DGE
Excellence sites in France
Excellence sites are very important for businesses looking to expand because they enable synergies between companies and the ecosystem to foster innovation.
Major ones are located in Hauts-de-France in different sectors
- Euratechnologies: dedicated to incubation and acceleration
- Eurasanté: dedicated to the Health sector
- Euraénergie: dedicated to energy transition
- CETI: dedicated to the textile industry
- Euracreative: specialided in creative industries (digital, audiovisual, video games, virtual reality and design)
- Parc haute Borne: home of research laboratories and innovative companies
- Créative mine: specialised in design and digital media
- Transalley: dedicated to the mobility and industry of the future.
- Serre numérique: a startup incubator and accelerator
- Picardie Technopole: a network of major regional stakeholders
- Industrilab: specialised in the aeronautics industry
- Louvres Lens Vallée: dedicated to the cultural sector
- Parc des éco-entreprises: dedicated to supporting companies in their development in the Artois territory
- Euralogistique: dedicated to logistics and supply chain
- Campus de la mer: dedicated to the marine sector
Numerous programmes are also tailored to job seekers
An initiative led by the Hauts-de-France to connect jobseekers and employers.
It gives training for different types of jobs in the Health sector
Ran by Stellantis, this training centre aims to help employees at their Douvrin site transition into emerging jobs in the electric mobility sector.
Recruiting in France
France has not really experienced shortages for skilled talent, however recruiting employees can be tough.
Due to its expertise and network, Nord France Invest can help the companies they support find their 1st employee in key jobs. Due to the help of institutions such as Pole Emploi, Nord France Invest will assist you in finding the right talent for your business. There are also programmes such as Proch’ Emploi – created by the Hauts-de-France – which connect businesses and job-seekers.
French Competitiveness Clusters
Competitiveness clusters are crucial for companies to have a strategic and commercial advantage.
There are around 71 competitiveness clusters in France. 21 Hauts-de-France has also 7 of the best performing clusters in France: Bioeconomy For Change, Aquimer, I-Trans, Team2, Euramaterials, Clubster NSL and Cap Digital Transport.
Many centres of excellence back these clusters: the Agence Hauts-De-France, Smart Specialisation Strategy, and regional schools and universities. They aim to expand skills in certain sectors such as agrifood, retail, health and R&D.
Source: 21 DGE
Research Tax Credit
The Research Tax Credit can be very beneficial to companies. At the moment, it represents 30% of a companies’ eligible annual research and development
The R& D tax credit can be a huge asset for your company in France. Currently, the R&D tax credit is equal to 30% of a business’ allowed annual research and development costs up to €100 million per year & 5% over this amount.23
Taxes in France
Corporation Tax
France has gradually lowered the corporate tax rate since 2017 to reach the European level. At present, the corporate tax rate in France stands at 25%.24
Company Property Levy
Companies and entrepreneurs in France must contribute to the company property levy (CFE) as well as the contribution on the added value (CVAE). The 1st one relies on the rental value of a company’s property. The CVAE is based on the added value built in the reference year for taxation.25
Source: 25 French Business Advice
VAT in France
Sales of goods and provision of services are liable for Value Added Tax (VAT) in France with some exemptions. VAT in France is charged at four levels: 26
- Reduced rate of 10% for unprocessed agricultural products
- Reduced rate of 5.5% for most food products, feminine hygiene products, condoms, equipment and services for the disabled, books on all media, gas and electricity subscriptions, supply of heat from renewable energies, etc.
- Special rate of 2.1%: reserved for medicines reimbursable by social security, and sales of live butchery and charcuterie animals to non-taxable persons. If your company does not meet the VAT turnover threshold, you may be eligible for a VAT exemption.
Challenges related to supply chain for British companies
The Hauts-de-France is the closest continental neighbour to the United Kingdom and can be the ideal gateway for British companies. Logistics is historically rooted in the Region which makes it the ideal location to deliver your goods. Since 2010, the Territorial Economic Contribution has replaced the business levy on equipment and movable property (PT), further lowering the cost of supply chain processes.
The immediate proximity of the Hauts-de-France region to the UK and the excellent transport infrastructures allow for fluid deliveries to European customers without the difficulties some UK companies face because of complications due to Brexit.
The cost of commercial properties in the Hauts-de-France region can help businesses gain a significant competitive advantage over competitors located in the UK and elsewhere. The cost of a warehouse in Northern France is 31% less than the average of our European competitors and offices are 52% less than the average.27
By developing in the region, British companies can also benefit from tailored support from Nord France Invest, – the Investment Promotion Agency for Hauts-de-France – the Attractiveness Promotion Agency Hello Lille – the Agency for the Lille Metropolis – as well as the UK Business Centre Lille – a soft-landing solution for British companies.
27 Nord France Invest, OCO study 2025
By developing in the region, British companies can also benefit from tailored support from Nord France Invest, – the Investment Promotion Agency for Hauts-de-France – the Attractiveness Promotion Agency Hello Lille – the Agency for the Lille Metropolis – as well as the UK Business Centre Lille – a soft-landing solution for British companies.
27 Nord France Invest, OCO study 2025
An example of this is the recent €40 million investment made by the acrylic fiber manufacturer Dickson-Constant. The company invested in the Hauts-de-France region to enhance its production capacity and meet increased customer demand with the support of Nord France Invest.
“We have to deliver our customers increasingly rapidly because they hardly keep stocks. From Portugal, we were able to deliver the entirety of Europe in 48 hours. However, from the Hauts-de-France Region, 80% of our client can be delivered in 24 hours.”
Eugène Deleplanque, CEO of Dickson Constant
Sustainable Development in France
“The French market is also a driving market, particularly on all subjects linked to CSR and sustainable development. We have launched several initiatives there which have been or will be taken over by the group, such as the activity of recovery of furniture and cleaning of buildings.”
Mickaël Locoh, VP Southern Europe and Africa, Steelcase.
Responsible consumption is on the rise in Europe, especially in France. According to a recent study, 75% of the respondents are preoccupied by the effects of climate change in 2025 (which has increased by 8 points since 2022).28 Traditional activities such as steel production are rapidly implementing decarbonisation programmes.
In 2022, the average number of tons per inhabitant in Europe was 10.7, compared to a high of 18.96 in 2007. 29 In comparison, France has been below the EU average consistently since 2007, when the average tons per inhabitant was 16.15 in 2007. This dramatically reduced to 9.4 in 2023.30
Renewable energy sources are rapidly gaining ground in France and providing cleaner alternatives to fossil fuels. France is investing in sustainable energy infrastructure, paving the way for a future powered by green technologies.
One of the most prominent activities in sustainable business is recycling. Gone are the days when discarded items were considered waste. From the reuse of paper and plastic to the decarbonisation of steel to reduce CO2, every action counts. Axens’ expansion is a good example of that, by setting up in the region, the company is going to set up a cathode active materials production plant for electric vehicles batteries.
Programmes like France 2030 have been created to encourage sustainable business initiatives. A €54 billion budget was allocated for companies with sustainable business projects in France. It involves business activities like manufacturing electric vehicles with zero CO2 emissions, smart agricultural equipment, research in biomedical or even producing food that respect the biodiversity.
France 2030 is on the national level, in Hauts-de-France there is the REV3 initiative, which encourages sustainable projects in the region. Its goal is to decarbonise the economy.
REV3 has planned a fund to support eco-friendly projects in the region in line with green and digital transformation. This is a huge asset for companies looking to develop more sustainable activities.
This shows the commitment of the region to transitioning its economy especially in the automotive industry, shifting towards electric mobility through its “Gigavalley” which already has 4 gigafactories.
6 things to keep in mind
Once you grasp its major characteristics, the business environment in France is highly favourable to companies. Here are the things you should remember from this article.
Public authorities are here to give you the necessary support for your project. Nord France Invest – the Investment promotion agency for Hauts-de-France – and Hello Lille can give you free and confidential support to guide you through your expansion. The UK Business Centre Lille is also here to assist British companies through a soft-landing solution and benefit from the help of expert.
The setting-up contract can make international companies’ development project easier by combining in a unique document the support available from public authorities they could benefit from.
Laws and regulations in France are not as complex as businesses might think it is once you grasp the way it operates.
Public authorities facilitate finding employees for companies with institutions like Pole Emploi as well as programmes like Proch’ Emploi. Their goal is to connect businesses with job seekers. Payroll costs are also much more attractive in Hauts-de-France compared to other cities in France and Europe.
Hauts-de-France is the nearest European continental region to the United Kingdom. Due to its many assets, it can help British companies access their markets smoothly.
France favours the development of eco-friendly initiatives with France 2030. On the regional level, REV3 encourages the same type of initiatives on the territory.
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