Social protection for company directors in France
Every company director operating in France must be affiliated with a social security protection scheme. This depends on the company director’s status, the legal form of the business and whether they receive a salary.
In a nutshell
- Social security coverage is mandatory for all company directors operating in France.
- The social security scheme depends on the company director’s status and the firm’s legal structure.
- Some foreign company directors on temporary assignment may remain affiliated with their home social security system, subject to certain conditions.
What social security protection scheme applies to company directors in France?
In France, the social security protection scheme applicable to a company director (also referred to as a “corporate officer” when they hold a management position within the company) cannot be freely chosen.
It is automatically determined based on several criteria:
- The business’s legal structure.
- Whether or not they are a shareholder and the level of control they exercise.
- The duties performed within the firm.
- Whether or not they receive a salary.
Depending on their situation, company directors fall into one of the following categories:
- Assimilated employee status, affiliated with the general social security system. They do not have employee status under labor law but contribute in a similar way to an employee for comparable social protection.
- Self-employed worker status, affiliated with the social security system for self-employed people, integrated into the general social security system. This system corresponds to the system applicable to self-employed businesspeople.
To understand the impact of the choice of legal structure on the company director’s social security and tax regime, view our page dedicated to types of business structures.
Assisting you in setting up your business
Mon-entreprise, the official assistant for business creators, provides the necessary resources to develop your business, from legal status to hiring your first employees.
What are the conditions for being affiliated with the social security system in France?
To be eligible for healthcare coverage in France, a person must:
- Carry out a professional activity in France.
- Otherwise, have resided in France legally and permanently for at least three months.
When does affiliation begin?
- Company director assimilated as an employee: From the date of the first salary payment.
- Self-employed company director: Upon registration of the business.
For newly established foreign investors, private insurance is recommended for the first few months.
Which company directors fall under the assimilated-employee regime?
The following company directors fall under the status of assimilated employee:
- Minority or equal shareholders of a Limited Liability Company (SARL).
- Chairmen and CEOs of a Public Limited Company (SA).
- Chairmen of a Simplified Limited Company (SAS or SASU).
- Non-shareholder managers of a Single-Member Limited Liability Company (EURL), excluding the spouse of the sole shareholder.
They are affiliated with the general social security system, except for unemployment insurance.
Universal health coverage
In the absence of any remuneration for their corporate mandate, company directors assimilated as employees can benefit from universal health coverage (PUMa) after three months of stable and regular residence in France.
This coverage reimburses healthcare costs up to the amount covered by the French social security system.
Further information: Universal Health Coverage
Company directors treated as employees benefit from:
- Health and maternity insurance.
- Basic and supplementary retirement benefits.
- Disability and death benefits.
They do not contribute to unemployment insurance, except in specific cases where they hold a separate and effective employment contract. They can take out private insurance to protect themselves against the risk of loss of business.
Corporate mandate and employment contract
If, in addition to their management role, the company director carries out salaried work in a technical capacity, they may be entitled to unemployment benefits in the event of job loss. They must show that there is a genuine employer-employee relationship with the firm and provide an employment contract stating that their duties are separate from those relating to the corporate mandate.
Registration begins upon payment of the first salary. The company director is registered with:
- Urssaf for social security contributions.
- Agirc-Arrco for supplementary pension benefits.
Contributions are calculated based on actual salary paid and are proportional, with no minimum contribution required if no salary is paid.
A simulator is available on Mon-entreprise to estimate social security contributions.
Which company directors fall under the self-employed workers’ scheme (TNS)?
Self-employed workers are affiliated with the social security system for self-employed people, which is part of the general social security system.
The company directors concerned are primarily:
- Sole proprietors (including micro-entrepreneurs).
- Majority shareholders of limited liability companies (SARLs).
- Sole shareholders of single-member limited liability companies (EURLs).
Self-employed individuals are entitled to:
- Health and maternity insurance.
- Family allowance.
- Retirement, disability and life assurance.
They are not automatically covered for workplace accidents, occupational illnesses or unemployment.
Supplementary insurance can be purchased on a voluntary basis.
Registration automatically takes effect as soon as the firm has been registered. The declaration of commencement of business activity must be made via the INPI’s single portal. The social security system for self-employed people then sends an official registration notification.
Further information: Registration procedures
Contributions are calculated based on the professional income declared on the tax website.
Calculate your social security contributions
A simulator is available on Mon-entreprise and secu-independants.fr for you to calculate your social security contributions.
What about foreign business leaders on assignment in France?
When a company director (or corporate officer) temporarily works in France while remaining affiliated with a firm established abroad, the applicable social security scheme depends in particular on:
- The country where the firm is established.
- The location where the work is actually carried out.
- The company director’s nationality.
- The duration and nature of the assignment.
- The applicable legal framework (European Union regulations, bilateral agreements, or other agreements).
General principle:
A company director who actually works in France is subject to the French social security system, unless European regulations or a bilateral social security agreement apply.
Under European regulations, continued coverage under the original social security scheme is possible for a temporary assignment, with the general limit being 24 months, provided that a link with the original firm is maintained.
An A1 certificate must be issued by the competent authority in the country of origin.
- With a bilateral agreement: Continued coverage under the original social security scheme may be possible if the agreement provides for this. Conditions and duration vary by country. It is necessary to review the provisions of each agreement.
- Without an agreement:Affiliation with the French social security scheme is mandatory upon commencing work in France.
To view the agreements signed by France, visit the CLEISS website.
At a glance
This page explains how social protection for company directors works in France. It is based on institutional sources such as securite-sociale.fr, URSSAF and CLEISS. It presents information covering the different schemes applicable depending on the director’s status, affiliation conditions and associated levels of cover. It uses the example of a company director setting up a business in France and seeking to understand their social protection.