BUSINESS LEADERS SOCIAL STATUS

RSI - URSSAF

SOME INFORMATION TO HELP BUSINESS LEADERS TO CHOOSE THEIR SOCIAL STATUS (RSI vs URSSAF).

 

There are two different statuses in France to which the manager will be affiliated and which will apply according to the legal structure of the company. On one hand, the business leaders can be considered as employees and will then pay social contribution to the social organism named URSSAF. On the other hand, the business leaders who are self-employed will pay to the organism named RSI (régime social des indépendants).

 

Business leaders considered as employees are:

  • The non-associated managers of EURL,
  • Minority or equity managers of SARL (Holding up to 50% of the shares),
  • The presidents of SAS and the directors-general,
  • The Chairmen of the board of directors, the chairman of the supervisory board and the managing directors of SA.

Business leaders who are self-employed (TNS: travailleur non salarié) are:

  • Individual entrepreneurs
  • The managing partners of EURL,
  • The controlling shareholders of SARL (Holding more than 50% of the shares),
  • The partners of SNC.

 

The main characteristics of the salaried status (URSSAF):

This status allows the manager to obtain the same benefits as an employee, a very good pension plan (basic pension plus an executive retirement), a disability insurance as well as the payment of capital in the event of the death of the manager. In some cases it is possible to be covered for unemployment, but this requires the conclusion of a contract of employment independent of the management mandate that it will be very difficult to get admitted by the unemployment insurance service.

The manager contributes to social security in France at the same rate as an employee.

 

The main characteristics of the self-employed (TNS) status (RSI):

The risks of unemployment are not covered, accidents at work and occupational diseases are very little covered or even not at all in some cases. The pension plan is less advantageous. On the other hand, the charges are lower and payment of contributions is postponed for one year. During the first year of operation, contributions are pay on a low basis. This constitutes a cash facility at the beginning of the activity.

In addition, the operator can improve and even personalize his social security by subscribing private insurance contracts. If the contract conforms to the "Madelin" law, the contributions can be deduct from the tax profit.

 

Compare the cost of each social system:

Here are some examples.

 

Overall cost of remuneration and charges

Net remuneration for manager (salaried status)

Net Remuneration manager (TNS, self -employed status)

difference

10 000

5 457

6 669

1 202

20 000

11 508

13 401

1 892

30 000

17 263

20 132

2 870

50 000

28 771

33 595

4 825

100 000

58 655

71 501

12 846

 

Before making the final choice of his social status, the entrepreneur starting a business in France will have to consider many other parameters. The most important of which is the legal structure of its company. For any questions about this article as well as about the creation of a company, you may contact one of our English-speaking accountant.