France vs UK for SaaS Expansion: Which Market to Choose
France has emerged as the most strategic entry point for US startups expanding into Europe. With market size, EU access, talent, incentives, and a dynamic ecosystem, Paris provides the fastest and most credible path to growth.
Market Size and EU Access
The UK has a population of sixty seven million and remains a strong economy, but Brexit means it no longer provides access to the EU single market. A company incorporated in London must set up a second base in Europe to sell seamlessly across the continent. France, with its own sixty seven million consumers and a GDP above three trillion euros, provides both a large domestic market and automatic access to more than four hundred million EU clients. For startups that want to scale across borders, France provides the stronger platform.
Business Environment
The UK has traditionally been seen as business-friendly, with flexible labor rules and a straightforward legal system. However, the loss of EU passporting has reduced its appeal for SaaS and fintech. France has reformed significantly in recent years, simplifying incorporation and building one of the world’s most dynamic startup ecosystems. Paris now ranks as the top venture capital hub in Europe, ahead of London. For a detailed comparison with another European giant, see our guide on France vs Germany.
Legal Structures and Incorporation
In the UK, the private limited company is easy to create, but for international founders the lack of EU recognition is a barrier. In France, the Société par Actions Simplifiée requires only one euro of capital and can be set up in four to eight weeks. It offers flexible governance and is fully compatible with venture capital. For SaaS companies planning to raise funds, the SAS provides a long-term advantage. See our article on why the SAS is the best choice for startups.
Taxes and Incentives
Corporate tax in the UK is currently twenty five percent, with limited R&D relief compared to France. France matches the UK on corporate tax but adds powerful incentives. The Crédit d’Impôt Recherche allows companies to recover up to thirty percent of R&D spending, and the Jeune Entreprise Innovante status reduces both corporate and payroll taxes for innovative companies. These programs can reduce R&D costs by up to forty five percent. For details, see our article on French tax incentives.
Talent and Hiring
The UK has strong pools of finance and tech talent, particularly in London. However, salaries are higher, and post-Brexit immigration rules make it harder to hire international candidates. France offers a deep SaaS talent pool in Paris, Lyon, and Nantes, with many professionals bilingual in English. Employer charges are higher, but gross salaries are often lower, making total costs comparable. For a breakdown of hiring conditions, see our article on hiring in France.
Ecosystem and Funding
London remains a global financial hub, but Paris has taken the lead in venture capital. In 2024, French startups raised more capital than their UK counterparts for the first time. Paris benefits from Station F, La French Tech, and Bpifrance, creating a supportive ecosystem for SaaS and fintech. For international startups, credibility with investors is increasingly stronger in France than in the UK.
Case Example
A US SaaS company debated between setting up in London or Paris. Choosing London meant fast incorporation, but EU clients required a separate EU entity. After switching to Paris, the company gained access to both French and EU clients, qualified for R&D tax credits, and raised a local funding round. Within a year, France had become its main revenue base in Europe.
How morn Helps
morn guides foreign SaaS companies through every step of French market entry. The team incorporates your SAS, secures a bank account, manages payroll and compliance, and recruits your first hires. With the optional Commercial Footprint service, morn also defines ICPs, generates leads, and books meetings with French clients.
Conclusion
The UK remains an important financial center, but Brexit has reduced its attractiveness as a European base. France combines EU access, tax incentives, deep talent, and the strongest startup ecosystem in Europe. For SaaS companies that want to expand quickly and credibly, France provides the clearest advantage. With morn as your partner, incorporation and hiring are completed smoothly so you can focus on growth.
