Entries by escec

Income Tax 2025 – Taxable Salary and Other Employment Income

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Updated on February 16, 2025 – Directorate of Legal and Administrative Information (Prime Minister)

Income Tax 2025 Declaration for 2024 Earnings

Last updated: February 16, 2025

The 2025 income tax return campaign for 2024 income is approaching. However, the required forms, online services, and informational documents are not yet available. They will be published as soon as they are ready.

Your Situation

  • You receive a salary
  • You do not receive overtime pay
  • You do not receive tips
  • You have work-related expenses
  • You do not receive benefits in kind or cash
  • You receive employee savings
  • You receive sick leave compensation
  • You receive social and family benefits
  • You have received end-of-contract compensation

Base Salary: Income Tax 2025

Your base salary is the compensation paid by your employer.

For tax purposes, you are considered an employee if:
✔ You have a work contract with an employer
✔ You work under an employer’s authority or professional dependency
✔ You hold a special status that qualifies as employment (e.g., a journalist with a press card)

 Salaries are taxable.

Special taxation rules apply to certain types of income, including:

  • Income earned by young workers
  • Apprenticeship wages
  • Salaries of childcare assistants and family caregivers

💡 Note: If you have received the Medal of Honor for Work and the reward is less than your monthly salary, it is not taxable.

Value-Sharing Bonus

In addition to your salary, you may receive a value-sharing bonus, which is taxable.

Work-Related Expenses

You can deduct professional expenses from your salary on your tax return.

Two options are available:
– Standard 10% deduction
– Actual expense deduction (if higher than 10%)

Benefits in Kind or Cash

If your employer provides benefits in kind (e.g., housing, meals) or cash incentives, they are taxable.

Employee Savings

Some types of employee savings are taxable and must be declared, such as specific profit-sharing income.

Sick Leave Compensation

Compensation for sick leave, accidents, or maternity leave is taxable, except for certain exemptions.

Social and Family Benefits

Most social and family benefits are tax-exempt. However, some are only partially exempt, meaning any amount exceeding the exemption threshold must be declared.

End-of-Contract Compensation

Compensation received at the end of a contract (resignation, dismissal, retirement, etc.) is taxable, except for certain exempt cases.

Income Tax – Tax Return 2025 Guide

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Updated on January 1, 2025 – Directorate of Legal and Administrative Information (Prime Minister)

2025 Income Tax Return for 2024 Earnings

Last updated: February 16, 2025

The 2025 income tax return campaign for 2024 earnings is approaching. However, the necessary forms, online services, and informational documents are not yet available. They will be released as soon as they are ready.

Who Needs to File a Tax Return in 2025?

If you live in France or if your fiscal residence is in France, you are required to declare your income.

Important Information for Tax Residents and Non-Residents

  • If you live abroad but earn income from France, you must also declare your income in France.
  • Even if your income is low or nonexistent, filing a tax return can be beneficial.

Benefits of Filing a Tax Return

Filing your 2025 tax return allows you to:
– Obtain a non-taxation certificate, required for certain financial aid (e.g., housing assistance).
– Request a refund for eligible tax credits.

Example:
You may receive a tax credit refund for childcare expenses, whether at home or in a daycare facility.

One Declaration Per Household

Only one tax return per household is required. This includes all income and deductible expenses of all household members (e.g., spouses and dependents), leading to a single tax assessment.

How to File Your 2025 Tax Return?

Online Tax Declaration – Mandatory in Most Cases

If your primary residence has internet access, you are required to file your tax return online.

Failure to comply may result in a 0.2% penalty on the tax owed, with a minimum fine of €60.

Where to File Online?

Log in to your Personal Tax Account for the 2025 online tax declaration (for 2024 income).

Before submitting, check that all pre-filled information is correct and update it if necessary.

Keep all supporting documents for three years in case of an audit.

📌 Exception: If you live in an area with no internet or mobile service, you may submit a paper tax return instead.

Tax Return 2025 Deadlines

The 2024 tax declaration (for 2023 income) is closed.
The 2025 tax declaration (for 2024 income) begins in April 2025.

Can You Modify Your Tax Return After Submission?

Yes! Even after submitting your declaration, you may still correct certain details if necessary.

For expert tax filing assistance and to ensure compliance with the latest regulations, visit www.escec-international.com. 

Business Creation Support

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Verified by Directorate of Legal and Administrative Information (Prime Minister)

Do you want to start a business but don’t know where to begin? There are many types of support available for business creation (training, internships, testimonials…) to help you understand the different steps involved. Specific support programs exist depending on the type of business activity you plan to undertake.

Commercial Activity

Support and Testimonials on Business Creation

The Chambers of Commerce and Industry (CCI) offer a business creation support guide detailing all the key steps involved in starting a business.

The CCIs also provide video testimonials from entrepreneurs sharing their experiences and discussing the support offered by the CCIs.

CCIs offer business creation support in the following areas:

  • Business model development
  • Market research
  • Financial planning
  • Business plan creation

Where to go?

What is your city or postal code?
Example: Sainte-Cécile-les-Vignes or 95200

BpiFrance provides a simulator that helps find a wide range of business creation aid programs available in your region.

Find suitable business creation support.

Training and Business Creation Internships

  1. Internships offered by municipalities and regions

To assist with business creation, many municipalities and regions offer internships for starting or taking over a business.

Where to go?

What is your city or postal code?
Example: Sainte-Cécile-les-Vignes or 95200

The purpose of these training programs is to provide essential information and help refine your project. Generally, to participate in these programs, you must already have a business creation project and seek to strengthen your entrepreneurial skills. These internships are not mandatory.

  1. Training programs offered by CCIs

CCIs provide training on how to start a business. For example, the “5 Days to Start a Business” program. These training sessions are paid and open to all types of entrepreneurs.

  1. Training programs listed by France Travail (formerly Pôle emploi)

On the France Travail website, you can find hundreds of training programs across France designed to help future business owners with their projects.

Artisanal Activity

Personalized Support, Seminars, and Testimonials

The Chambers of Trades and Crafts (CMA) offer personalized support for business creation. They also provide free online seminars on business creation and access to entrepreneur testimonials. It is important to contact your local CMA to access available support programs.

Where to go?

What is your city or postal code?
Example: Sainte-Cécile-les-Vignes or 95200

Training and Business Creation Internships

  1. Internships offered by municipalities and regions

To assist with business creation, many municipalities and regions offer internships for starting or taking over a business.

Where to go?

What is your city or postal code?
Example: Sainte-Cécile-les-Vignes or 95200

These programs provide key information and help refine your project. Generally, you must already have a business creation project and seek to strengthen your entrepreneurial skills.

Note: These internships are not mandatory.

  1. Training programs offered by CMAs

CMAs also offer business creation training. Contact your local CMA to discover available training programs.

CMA Training Centers

CMAs also provide management initiation courses and business setup preparation courses.

  1. Training programs listed by France Travail (formerly Pôle emploi)

On the France Travail website, you can find hundreds of training programs across France designed to help future business owners with their projects.

Agricultural Activity

  1. Internships offered by municipalities and regions

To assist with business creation, many municipalities and regions offer internships for starting or taking over a business.

Where to go?

What is your city or postal code?
Example: Sainte-Cécile-les-Vignes or 95200

  1. Training programs offered by agricultural chambers

The Chambers of Agriculture offer training programs to help you set up your business. These programs aim to develop essential entrepreneurial skills and support business creation. Open to all individuals with an agricultural business project, these programs consist of multiple training modules.

You can also visit the Point d’Accueil Installation (PAI) website, a national support platform dedicated to agricultural business creation.

Prepare your agricultural business installation project.

  1. Training programs listed by France Travail (formerly Pôle emploi)

On the France Travail website, you can find hundreds of training programs across France designed to help future business owners with their projects.

Note: These programs are not mandatory. However, to start an agricultural business, professional qualifications or relevant agricultural experience (VAE – Validation of Acquired Experience) are required.

Liberal Professions

The National Union of Liberal Professions (UNAPL) provides a guide for starting a liberal profession. It includes information on initial formalities, tax and social status, and social protection.

You can contact your regional UNAPL office to explore available support programs.

Where to go?

National Union of Liberal Professions (UNAPL)

Depending on your activity—especially if it is a regulated profession (requiring specific qualifications, such as craftsmanship, pharmacy, transport, or real estate agencies)—professional organizations (e.g., Order of Chartered Accountants, Medical Board) may assist you in setting up your business.

They can provide guidance on business setup and project development.

Additionally, you can find hundreds of training programs on the France Travail website to support future business owners in their projects.

Social Contributions for Micro-Entrepreneurs: Key Information

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Verified by Directorate of Legal and Administrative Information (Prime Minister’s Office)

Micro-entrepreneurs are subject to a specific social security system. This guide outlines the applicable contributions, declaration procedures, and potential exemptions.

Calculation and Declaration of Social Contributions

Micro-entrepreneurs benefit from a simplified system for calculating and paying social contributions. These contributions are determined as a fixed percentage of revenue and cover all required social charges.

  • The calculation is based on revenue generated in the previous month or quarter.
  • Contributions must be declared and paid to Urssaf either monthly or quarterly, depending on the chosen reporting schedule.
  • Declarations are made online through the Micro-Social Regime portal.

Applicable Contribution Rates

Rates vary depending on the nature of the business activity:

  • Retail trade and accommodation services (excluding furnished rentals and tourist lodgings)
  • Furnished residential rentals
  • Furnished tourist rentals
  • Service-based activities (Industrial and Commercial Profits – BIC)
  • Liberal professions outside Cipav (Non-Commercial Profits – BNC)
  • Liberal professions under Cipav (BNC)

It is possible to estimate contribution amounts using an online simulation tool.

Revenue of Zero: Consequences

If no revenue is generated, no social contributions are due. However, micro-entrepreneurs can opt to maintain minimum contributions to preserve access to benefits such as health coverage and retirement rights.

  • This request must be submitted to Urssaf by December 31 of the preceding year or, for new businesses, within three months of registration.
  • To withdraw from this option, a written request must be sent before the end of the year.

Breakdown of Social Contributions

Social contributions deducted from revenue cover:

  • Health and maternity insurance
  • Daily allowances
  • Basic and supplementary retirement pensions
  • Disability and death insurance
  • Family allowances
  • Professional training
  • General Social Contribution (CSG) and Social Debt Repayment Contribution (CRDS)

Social Contributions for Employees

If a micro-entrepreneur employs workers, social contributions apply to wages and benefits, including:

  • Salaries and allowances
  • Replacement income (sick leave, maternity, work accidents)
  • Supplementary family benefits
  • Benefits such as employer-provided housing or transport allowances

Employers must deduct these contributions from salaries and declare them via the Nominative Social Declaration (DSN):

  • Monthly DSN: Required by the 15th of the following month for businesses with fewer than 11 employees.
  • Quarterly DSN: Optional for some businesses.

Employer Contributions

  • Family allowances
  • Health, maternity, disability, and death insurance
  • Workplace accident contributions
  • Housing fund contributions
  • Unemployment insurance
  • Supplementary retirement contributions

Employee Contributions

  • Retirement contributions
  • CSG and CRDS
  • Unemployment insurance

An online tool is available to estimate contribution costs when hiring employees.

Exemptions and Reductions in Contributions

Reductions in Contributions

Certain reductions may apply:

  • Lower employer contributions for salaries below a specific threshold
  • Exemptions on additional hours worked by employees

Contribution Exemptions

Exemptions may be granted under specific conditions:

  • Geographical incentives: Businesses located in designated economic zones may qualify for reduced contributions.
  • New business exemptions: Startups may be eligible for partial social charge exemptions under the Acreprogram.
  • Innovative companies: Young businesses engaged in research and development may receive contribution relief.

Key Terms Defined

  • Abatement: A fixed or proportional reduction applied to taxable income.
  • Assessment Base: The revenue amount used to calculate contributions.
  • Contribution: A mandatory payment that funds the social security system.
  • Exemption: A waiver from specific social contributions.
  • Nominative Social Declaration (DSN): A mandatory online report summarizing payroll and social security obligations.
  • Micro-Social Regime: A simplified social security system designed for micro-entrepreneurs.

This summary outlines essential aspects of the social contribution system for micro-entrepreneurs. For further details, Urssaf provides official guidance and assistance.

Taxation of a Limited Liability Company (SARL)

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A limited liability company (SARL) is a company made up of at least two partners whose liability is limited to the amount of their contributions. The SARL is a very common form of business and is often used for family businesses. It is possible to set up a SARL with a single partner; in this case, it is called an EURL (single-member company with limited liability).

Corporate Taxation of a SARL

By default, a SARL is subject to corporate tax (IS). However, it is possible under certain conditions to opt for income tax (IR). The corporate tax rate is 25%. A reduced rate of 15% applies to small businesses for the fraction of profits up to 42,500 euros.

Tax Filing and Payments

A SARL is required to declare its results annually. Depending on its taxation regime (normal or simplified), it must file different types of declarations. The corporate tax is paid in four installments (quarterly payments) with a final adjustment based on actual profits.

Taxation of the Manager

The manager of a SARL can receive:

  • A salary: This is subject to personal income tax and social security contributions.
  • Dividends: Taxed under the flat tax (30%) or optionally under the progressive scale of income tax.
  • Interest on shareholder current accounts: Subject to income tax and social security contributions if considered a disguised salary.

Other Taxes Applicable to a SARL

  • Value Added Tax (VAT): A SARL is generally subject to VAT unless it benefits from an exemption.
  • Business Property Tax (CFE): Due annually, based on the company’s premises.
  • Corporate Value-Added Tax (CVAE): Applies to companies with a turnover exceeding 500,000 euros.

Conclusion

A SARL is subject to various tax obligations that must be understood to ensure compliance and optimize tax advantages. Choosing between corporate tax (IS) and income tax (IR) can significantly impact the financial strategy of the company. Therefore, it is advisable to consult a tax professional to determine the best approach.

Micro-Entrepreneur Taxation: What You Need to Know

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Verified on January 1, 2025 – Directorate of Legal and Administrative Information (Prime Minister’s Office)

What is the Tax System for Micro-Entrepreneurs?

Micro-entrepreneurs are automatically subject to the micro-BNC (Non-Commercial Profits) tax system under personal income tax. However, they can opt for the standard taxation system if preferred.

Under the micro-BNC system, tax is deducted at source unless the entrepreneur chooses the flat-rate payment option, which allows for a combined payment of taxes and social contributions to Urssaf. Eligibility depends on the previous year’s taxable income, with thresholds varying based on household size.

Controlled Declaration System

Entrepreneurs opting for the controlled declaration system must apply before the second business day following May 1 and submit their tax returns by this deadline. An additional 15 days is granted for online submissions.

Micro-entrepreneurs must declare their turnover to Urssaf using the Supplementary Declaration for Non-Salaried Income and provide a BNC tax return.

What Taxes Apply to Micro-Entrepreneurs?

Micro-entrepreneurs may be liable for various taxes, including:

  • Value-Added Tax (VAT)
  • Business Property Contribution (CFE)

VAT

VAT obligations depend on revenue levels:

  • Exempt from VAT: Businesses with annual revenue below €37,500 (services) or €85,000 (commerce and accommodation).
  • Simplified VAT Regime: Businesses with annual revenue between €37,500 and €254,000 (services) or €85,000 and €840,000 (commerce and accommodation), with VAT under €15,000 per year.
  • Standard VAT Regime: VAT must be declared and paid monthly through an electronic system.

CFE (Business Property Contribution)

  • Exempt in the first year
  • Reduced in the second year
  • Possible permanent or temporary exemptions based on location and activity

CFE applies if the entrepreneur:

  1. Earns more than €5,000 annually
  2. Runs a non-salaried professional activity regularly

A CFE initial declaration must be submitted by December 31 of the business’s first year.

Tax Benefits for Micro-Entrepreneurs

Micro-entrepreneurs may qualify for tax reductions or credits based on:

  • Business location (e.g., priority urban areas)
  • Activity type (e.g., tax credits for craft industries)
  • Employee hiring (e.g., tax relief for employment and sustainability initiatives)
  • Specific actions (e.g., tax credits for innovation, research, and donations)

Certain exemptions, such as temporary CFE exemption, may also apply when starting a business.

Key Tax Terms

Understanding taxation requires familiarity with essential terms, such as:

  • Tax deduction: A reduction in taxable income
  • Tax exemption: Full or partial relief from tax obligations
  • Turnover: Total revenue from sales or services
  • Controlled declaration: A taxation system for businesses exceeding €77,700 in annual revenue
  • Standard and simplified tax regimes: Different levels of tax obligations based on revenue thresholds
  • VAT exemption: A scheme where businesses do not charge VAT on sales

 

Business Creation: Company Registration Formalities

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Verified by Directorate of Legal and Administrative Information (Prime Minister’s Office)

When starting a business, several essential steps must be completed. One of the key steps is company registration, which involves officially declaring the company’s activities to the relevant authorities.

The required documents for registration vary depending on the type of company. The main categories include:

  • Commercial companies: Limited Liability Company (SARL), Single-Member Limited Liability Company (EURL), Simplified Joint-Stock Company (SAS), Single-Member Simplified Joint-Stock Company (SASU), Public Limited Company (SA).
  • Civil companies: Professional Civil Company (SCP), Civil Partnership for Business (SCM), Liberal Practice Company (SEL), Real Estate Civil Company (SCI).

When Should the Registration Application Be Submitted?

The application for company registration must be filed once all incorporation formalities are completed, including:

  • Regulated activities compliance: Obtaining necessary licenses, permits, or certifications.
  • Declaration of beneficial owners: Identifying individuals holding more than 25% of shares or control over company management.
  • Company address registration: Establishing the official business address and notifying the postal service.
  • Appointment of the company director: Shareholders must officially designate a company director.
  • Adoption of the company’s articles of association: The articles outline the company’s operations. If non-monetary contributions (such as equipment or real estate) are involved, a contribution auditor must assess their value.
  • Publication of company formation: A notice must be published in an authorized legal announcement medium before registration.
  • Deposit of share capital: Once gathered, the company’s share capital must be deposited in a bank account and can be accessed post-registration.
  • Acquisition of mandatory registers: Businesses must obtain required accounting and employee-related registers.

A company can begin operations before official registration, but all documents must indicate “Company in the process of formation.” Additionally, a separate annex must be included in the articles of association listing any contracts or transactions made before registration.

How to Submit a Registration Application?

The application must be submitted via the official Business Formalities Portal.

Once registered, the company is automatically added to:

  • The National Business Directory (RNE).
  • The Trade and Companies Register (RCS).

Important Information

If the company engages in commercial agency activities, it must also be registered with the Special Register of Commercial Agents (RSAC).

Required Documents

The required documents depend on the company type (EURL, SARL, SAS, SASU, SA with a board of directors, or SA with an executive board and supervisory council).

What Happens After Submission?

Upon submission via the Business Formalities Portal, the company receives an Acknowledgment of Business Creation File Submission (RDDCE), marked as “Pending Registration.”

This acknowledgment allows the company to complete necessary procedures with public and private entities, such as subscribing to required insurance policies.

The acknowledgment is valid for up to one month, until official registration confirmation is received.

Once registered, the business receives an official registration certificate, including its identification numbers (SIREN, APE code, etc.).

If the application is incomplete, the portal will issue a notification specifying missing documents. These must be provided within 15 business days from the date of notification.

Choosing the Business Domiciliation Address: Options and Obligations

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Business domiciliation is a legal requirement. It involves assigning an administrative and legal address to the company before its registration. This address, known as the registered office, appears on all official documents (statutes, invoices, contracts, etc.) and determines the competent jurisdictions in case of disputes.

Why is Domiciliation Essential?

The domiciliation address is crucial for setting up a business. It serves as a reference for administration, partners, and clients. This address must be mentioned on the company’s website and in the business plan. It plays a role in the company’s image and credibility.

Different Business Domiciliation Solutions

Several options are available for domiciling a business, depending on the entrepreneur’s needs and constraints.

1. Domiciling the Business at a Personal Residence

A company’s manager can choose to establish the registered office at their personal residence under certain conditions:

  • They must be the owner or tenant of the residence.
  • The address must be their primary residence.
  • There should be no restrictions in the lease agreement, condominium regulations, or urban planning rules.
  • In case of restrictions, a temporary domiciliation (maximum of 5 years) may be considered.

This solution is cost-effective but may pose limitations regarding confidentiality and the separation of professional and personal life.

2. Renting a Dedicated Office Space

Entrepreneurs who wish to separate their professional activities from their residence can opt for renting an office or commercial space. There are two types of leases:

  • Commercial lease: Intended for commercial or artisanal activities.
  • Professional lease: Reserved for liberal professions.

Although more expensive, this option provides stability and increased visibility for the business.

3. Using a Coworking Space

Coworking spaces allow entrepreneurs to share a workspace with other professionals. This solution offers several benefits:

  • Reduced domiciliation costs.
  • Access to a well-equipped workspace (printers, meeting rooms, etc.).
  • Networking opportunities with other entrepreneurs.

However, coworking spaces often have restrictions on storage and frequent client visits.

4. Using a Domiciliation Service

Domiciliation companies provide businesses with an official administrative address and offer various services, such as:

  • Mail management and forwarding.
  • Access to offices and meeting rooms.
  • Phone reception and administrative support.

These services are subject to strict regulations, and domiciliation providers must have official approval from the authorities.

5. Setting Up in a Business Incubator

Business incubators support startups and growing businesses by providing:

  • Affordable office space.
  • Shared services (secretarial support, internet, office equipment).
  • Personalized coaching and networking opportunities.

Access to an incubator is usually time-limited (typically 48 months), and businesses must apply for admission.

How to Choose the Best Option?

The choice of domiciliation depends on several factors:

  • Budget: Home-based or incubator domiciliation is more cost-effective than renting a commercial space.
  • Business needs: Considerations include the need to host clients, store inventory, or access administrative services.
  • Company image: A prestigious address can enhance credibility with partners and investors.

Administrative Procedures for Domiciliation

Regardless of the chosen option, the company’s registered address must be included in its legal statutes and declared with the National Business Register (RNE). Any change in domiciliation requires a modification of the statutes and a declaration to the relevant authorities.

Conclusion

Business domiciliation is a crucial step that affects a company’s operations and image. It is essential to analyze the advantages and disadvantages of each solution to choose the one that best fits the business’s needs. Proper domiciliation ensures better organization and enhances credibility with clients and partners.

Starting a Business: Choosing the Right Legal Structure

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Legal and Administrative Information Department (Prime Minister’s Office)

When starting a business, selecting the appropriate legal structure is crucial. This decision depends on several factors, including the number of partners, capital investment, tax and social security obligations, and the extent of liability.

Comparison of Business Structures

Business Type

Capital Requirement

Number of Partners

Liability

Taxation

Sole Proprietorship (EI)

Not required

Not applicable

Limited to business assets

Income tax (IR) with an option for corporate tax (IS)

Single-Member Limited Liability Company (EURL)

Free

1

Limited to contributions

Income tax (IR) with an option for corporate tax (IS)

Limited Liability Company (SARL)

Free

2 to 100

Limited to contributions

Corporate tax (IS), option for income tax (IR)

Single-Member Simplified Joint-Stock Company (SASU)

Free

1

Limited to contributions

Corporate tax (IS), option for income tax (IR)

Simplified Joint-Stock Company (SAS)

Free

Minimum 2

Limited to contributions

Corporate tax (IS), option for income tax (IR)

Public Limited Company (SA)

€37,000

Minimum 2 (private), 7 (public)

Limited to contributions

Corporate tax (IS), option for income tax (IR)

General Partnership (SNC)

Free

Minimum 2

Partners are jointly and severally liable for company debts

Income tax (IR)

Limited Partnership (SCS)

Free

Minimum 2 (at least one general partner and one limited partner)

General partners: unlimited liability; Limited partners: limited to contributions

Income tax (IR), option for corporate tax (IS)

Partnership Limited by Shares (SCA)

€37,000 (€225,000 if public offering)

Minimum 4 (at least one general partner and three limited partners)

General partners: unlimited liability; Limited partners: limited to contributions

Corporate tax (IS)

Sole Proprietorship (EI)

For individuals wanting to start a business alone, a sole proprietorship is a simple and accessible option. No formal structure, statutes, or capital formation is required.

Liability A sole proprietor’s personal and business assets are separate, protecting personal property (e.g., savings, secondary residences) from business debts.

Taxation Profits are taxed under personal income tax (IR). The entrepreneur determines their own salary based on business income after taxes, social contributions, and expenses.

Social Security Sole proprietors are classified as self-employed workers, with social contributions amounting to around 45% of income.

Single-Member Limited Liability Company (EURL)

This structure suits individuals seeking limited liability for business debts.

Number of Partners One (individual or corporate entity).

Capital Requirement No minimum capital. Contributions can be cash, assets, or industry expertise.

Liability Limited to contributions unless mismanagement or personal guarantees are involved.

Taxation Default taxation is personal income tax (IR), but corporate tax (IS) is an option.

Social Security for the Manager

  • Sole partner-managers are self-employed.
  • Non-partner managers are considered salaried employees.
  • Taxation varies depending on whether the income is classified under business or employment income.

Limited Liability Company (SARL)

Ideal for commercial, industrial, or professional activities.

Number of Partners Minimum 2, maximum 100 (individuals or entities).

Capital Requirement No minimum capital, consisting of cash, assets, or industry expertise.

Liability Limited to contributions unless personal guarantees are given.

Taxation SARLs pay corporate tax (IS), but family-owned SARLs and new companies (under five years) may opt for income tax (IR) under specific conditions.

Social Security for the Manager

  • Minority or equal shareholders fall under the general social security system if salaried.
  • Majority shareholders (50%+1) are classified as self-employed.

Taxation for the Manager

  • Salaries are taxed under employment income with a 10% standard deduction or actual expenses.
  • Dividends are taxed under capital gains at a flat rate of 30%.

Single-Member Simplified Joint-Stock Company (SASU)

Suitable for any business sector.

Number of Partners One (individual or entity).

Capital Requirement Minimum €1, with cash or asset contributions. Industry contributions are allowed but not included in capital.

Liability Limited to contributions unless mismanagement occurs.

Taxation Default taxation is corporate tax (IS), with a temporary income tax (IR) option for five years if certain conditions are met.

Social Security for the President

  • Presidents are covered by general social security.
  • No social contributions apply if no salary is taken.

Taxation for the President

  • Salaries are taxed under employment income unless the company opts for IR.

Choosing the Right Business Structure

Each legal form offers distinct advantages and constraints based on liability, taxation, and administrative complexity. Entrepreneurs should consider their long-term business goals when selecting a structure.

Portage Salarial: A Comprehensive Overview

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Directorate for Legal and Administrative Information (Prime Minister)

What is Portage Salarial?

Portage salarial is a tripartite contractual relationship where an employee, known as a “portage salarié,” enters into an employment contract with a portage company and provides services for a client company. The portage company is the official employer, managing the payroll and administrative tasks, while the portage salarié works directly with the client company.

Key Aspects of Portage Salarial

Eligibility of the Portage Salarié: Anyone with the necessary expertise, qualifications, and autonomy to seek clients can be a portage salarié. The employee must have at least a Level 5 professional qualification (Bac +2) or significant experience, typically at least 3 years in the same field. The portage salarié negotiates the service terms and pricing with the client company. The choice of the portage company is also made by the employee. The portage salarié provides services to the client company and reports their activity to the portage company at least once a month.

Types of Employment Contracts in Portage Salarial

Fixed-Term Employment Contract (CSD): The fixed-term contract is designed for the performance of a service in a client company. It includes provisions for the trial period, paid compensatory leave, and conditions for early termination and indemnities. The contract can be renewed twice, and the total contract duration cannot exceed 18 months, including renewal periods.

The terms of the contract also specify the relationship between the portage company and the portage salarié, including clauses on salary calculation, tax contributions, social security, professional expenses, and more. The portage salarié must be provided with the contract no later than two working days after it is concluded.

Conditions of Employment and Benefits

Salary Calculation: In it’s system, the gross monthly minimum salary for a portage salarié cannot be less than €2,517.13. This includes base salary, paid leave allowance, and the business contribution premium (5%). The minimum salary varies depending on whether the portage salarié works with a day package or on an hourly basis.

For example:

  • Junior employees (without a day package) receive 70% of the ceiling, or €2,288.30.
  • Senior employees (without a day package) receive 75% of the ceiling, or €2,451.75.
  • Employees on a lump sum day package receive 85% of the ceiling, or €2,778.65.

Classification of the Portage Salarié: The classification of the portage salarié varies based on experience. Employees with less than 3 years of experience in portage salarial are typically classified as technicians or similar roles, while those with more experience may be classified as executives.

Seniority in Portage Salarial: Seniority in portage salarial is determined based on the periods during which the portage salarié has performed work. For professional elections, the required seniority is 3 months for voting rights and 6 months to be eligible for election.

Health and Safety in Portage Salarial: The portage company is responsible for managing the health and safety obligations, including occupational medicine (information and prevention visits, periodic visits, etc.).

Training Opportunities in Portage Salarial: Eligible portage salariés can benefit from various training programs, such as out-of-hours training within 240 hours, skills assessments, and personal training accounts. These opportunities help the portage salarié to develop their skills and grow professionally.

Unemployment Benefits: Portage salariés are covered by unemployment insurance. Additionally, it is possible to accumulate Return to Employment Assistance (RWA) while receiving income from a broad-based activity.

Client Company Responsibilities

Client Company Obligations: The client company is responsible for providing the necessary working conditions for the portage salarié. This includes ensuring health and safety, providing personal protective equipment (PPE), and complying with work duration regulations. The client company must also ensure that the work environment meets legal requirements.

Distinction Between it and Other Employment Contracts

Portage Salarial vs. Temporary Employment: It is crucial not to confuse portage salarial with inter-company labor loans or temporary employment contracts (interim). Portage salarial is distinct in that it ensures the portage salarié is officially employed by the portage company, with all employment rights and benefits intact.

Client Company’s Financial and Legal Responsibilities

Salary Portage Agreement Details: The portage company must provide the portage salarié with detailed information about the activity account, including payments made by the client company, management fees, social and tax levies, business expenses, and the portage salarié’s net remuneration.