France Social Charges (Cotisations) for New Companies FAQ

For founders creating a French company in 2026, cotisations sociales (social charges) are typically the largest single recurring cost — often exceeding the corporate income tax liability. The French social system is layered: different rules apply to gérant majoritaire SARL, gérant minoritaire SARL, président SAS, EURL associate, and EI/micro-entrepreneurs, with varying coverage and rate structures. This FAQ answers the questions a Gyoseishoshi (行政書士) hears most often from international founders incorporating in France.

Q1. What are cotisations sociales?

Mandatory contributions paid by employers, employees, and self-employed workers to fund the French social security system: health insurance, retirement, family allowances, unemployment (in certain cases), workplace accident coverage, and the CSG/CRDS general social contributions.

Statutory basis: Code de la Sécurité Sociale (CSS) articles L.241-1 onwards; sector-specific legislation for unemployment (UNEDIC) and supplementary retirement (AGIRC-ARRCO).

Primary source: https://www.urssaf.fr/

Q2. What are the two main social regimes?

Régime Général

Salaries paid to employees, gérants minoritaires of SARL, présidents and directeurs généraux of SAS/SASU/SA. Coverage:

• Health
• Retirement (basic + complementary)
• Unemployment (variable by status)
• Family allowances
• Workplace accident

Total cost: roughly 80% of net salary (45% employer + 22% employee + ~13% miscellaneous), but precise figures depend on sector and brackets.

Régime des Travailleurs Non-Salariés (TNS)

Self-employed workers, gérants majoritaires of SARL, EURL associate-gérants, EI/micro-entrepreneurs. Coverage similar to régime général except no unemployment insurance. Total cost: roughly 30–45% of net remuneration.

Reference: https://www.secu-independants.fr/

Q3. Who is “gérant majoritaire” vs “gérant minoritaire”?

For SARL only:

• Gérant majoritaire: holds (alone or with spouse / minor children) more than 50% of voting rights at the company. → TNS
• Gérant minoritaire / égalitaire: holds 50% or less. → Régime général (assimilé salarié)

In an EURL with the sole associate as gérant: TNS (single associate by definition holds 100%, but treated as TNS under CSS).

Q4. What about SAS/SASU?

The président (and directeurs généraux) of a SAS or SASU are always assimilés salariés under article L.311-3 CSS, regardless of shareholding. → Régime général.

This is a major architectural difference: in a SAS, there is no “TNS shortcut” available to founders, unlike in SARL.

Q5. What rates apply to the two regimes in 2026?

Régime Général (employer + employee combined)

For a salary of €40,000 gross (≈ €30,000 net after employee charges):

• Employer charges: ~€18,000 (45% of gross)
• Employee charges: ~€8,800 (22% of gross)
• Total cost to company: ~€58,000 for €30,000 net to employee

Specific rates depend on sector (CCN), salary brackets (Tranche A, B, C of social security ceiling = €47,100 in 2026), and exemptions (Réduction Générale des Cotisations Patronales for low salaries).

TNS (gérant majoritaire SARL)

On annual remuneration of €40,000 declared:

• Cotisations: ~€16,000–€17,500 (40–43%)
• CSG/CRDS: included
• No unemployment

Substantial savings vs régime général but no unemployment safety net.

Reference: https://www.urssaf.fr/portail/home/employeur.html

Q6. Are there allowances for company creation?

Yes — the ACRE (Aide aux Créateurs et Repreneurs d’Entreprise) under article L.131-6-4 CSS provides:

• 50% reduction on social charges in the first 12 months
• For micro-entrepreneurs, the discount is up to ~75% in year 1

Eligibility includes job seekers, beneficiaries of certain allowances, those under 26, etc. ACRE is automatically granted to most micro-entrepreneurs at creation.

Q7. What about no-remuneration scenarios?

If the gérant or président does not draw a salary, no cotisations sociales arise on remuneration. However:

• Health coverage must be obtained separately (PUMa — Protection Universelle Maladie — provides basic cover under article L.111-2-2 CSS)
• Retirement entitlement is forfeited (no contributions = no quarters credited)
• Dividend taxation: SAS président dividends are not subject to cotisations (only PFU 30%); SARL gérant majoritaire dividends above 10% of capital + capital account are subject to TNS cotisations

This last point — SARL gérant majoritaire dividend exposure — is crucial. The 10% rule under CSS L.131-6 means high dividend strategies in SARL face partial socialisation, while SAS dividends do not.

Q8. What is the impact of the 10% SARL dividend rule?

Under article L.131-6 CSS, a SARL gérant majoritaire pays cotisations sociales (TNS rates ~30–40%) on the portion of dividends exceeding 10% of the sum of: capital + share premium + courant d’associé balance.

Example: Capital €5,000, current account €5,000 = base €10,000. 10% threshold = €1,000. If dividend = €30,000, then €29,000 is subject to TNS cotisations (~€11,000 cost).

The SAS escapes this rule entirely. This is the principal reason high-dividend founders choose SAS.

Q9. How are micro-entrepreneurs charged?

Micro-entrepreneurs declare turnover monthly or quarterly via autoentrepreneur.urssaf.fr and pay flat-rate cotisations (2026):

• Sale of goods: ~12.3%
• Services BIC: ~21.2%
• BNC: ~21.1%

Plus optional versement libératoire (1% / 1.7% / 2.2%) replacing income tax.

A micro-entrepreneur earning €50,000/year in services pays ~€10,600 in cotisations. Under régime général at the same revenue, total cost would be far higher, but with full unemployment + retirement entitlement.

Reference: https://www.autoentrepreneur.urssaf.fr/

Q10. When are cotisations paid?

Régime général (employees)

Monthly via DSN (Déclaration Sociale Nominative) — single, automated declaration linking payroll to URSSAF, retraite, mutuelle, etc.

TNS

Provisional cotisations paid monthly or quarterly based on revenue from year N-2. Adjusted in year N+1 when actual income is known. Significant cash flow implications for first three years.

Micro

Monthly or quarterly with each turnover declaration.

Q11. What happens in case of late payment?

Penalties under article R.243-18 CSS:

• 5% increase for late payment
• Penalties of 0.20%/month + 0.40%/month for prolonged default
• Mise en demeure then enforcement (saisies, contraintes)
• Personal liability of the gérant for unpaid cotisations in some circumstances

Q12. What is the social security ceiling (PASS) for 2026?

The Plafond Annuel de la Sécurité Sociale (PASS) is set by decree. For 2026:

• PASS annuel: €47,100
• PMSS (monthly): €3,925

The PASS is used in:

• Tranche A / B / C distinctions for retirement
• TNS contribution caps (some cotisations capped at PASS)
• Severance pay limits

Q13. What about unemployment insurance for founders?

• Régime général (SAS président, SARL gérant minoritaire): NO — they pay UNEDIC contributions in some structures but rarely qualify because of “rapport de subordination” tests
• TNS: NO — unemployment insurance is not part of the TNS package
• Optional schemes: GSC, Madelin contracts, voluntary unemployment insurance available privately

This is a critical risk consideration for founders leaving stable salaried positions.

Q14. Common Mistakes — Gyoseishoshi View

Conclusion — A Defining Cost Structure

Cotisations sociales shape the entire economics of a French company. The choice of legal form (SARL vs SAS), the choice of director regime (majoritaire vs minoritaire), and the salary-vs-dividend balance are not just tax decisions — they are social-charge decisions worth thousands of euros per year.

A Gyoseishoshi cannot file URSSAF declarations or operate French payroll. Scrib🐮 produces the corporate-side documents: SAS/SARL statutes specifying the régime architecture, board minutes setting director remuneration, and shareholder communications covering the dividend strategy.

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Disclaimer

Legal information, not legal advice. MmowW Scrib🐮 is operated by a licensed Gyoseishoshi (行政書士) office in Japan. We are not avocats.

Sources

• URSSAF: https://www.urssaf.fr/
• Code de la Sécurité Sociale: https://www.legifrance.gouv.fr/codes/texte_lc/LEGITEXT000006073189/
• Auto-entrepreneur (URSSAF): https://www.autoentrepreneur.urssaf.fr/
• entreprendre.service-public.fr: https://entreprendre.service-public.fr/vosdroits/F31192