5. Business Structures in France

1. 5.1. Types of Business Structure
   5.2. Self-Employed
   5.3. Sole Trader
   5.4. Limited Company
   5.5. Status of Spouse

5.5. Status of Spouse in a Business in France

If your spouse participates in the running of the business, then they are obliged to have some kind of legal status. Those in a French civil partnership are able to opt to have some form of legal status.

There are three choices:

• Conjoint collaborateur
- Partner
• Conjoint salarié
- Employee
• Conjoint associé
- Shareholder

This means that they will be required to pay social security contributions, but it also means they have greater rights to social security benefits, notably a pension entitlement.

If you spouse does take part in the business, you should not assume that the level of the social security contributions will be high - it will on depend on the nature and level of remuneration. If there is little or no remuneration, then social charges will be minimal.

You may also have a choice as to the basis on which you your spouse pays social security contributions, particularly should you choose the status of conjoint collaborateur, where you can use different percentages of the net remuneration of the owner.

The choice of legal status for your spouse will depend on the type of legal structure held by the business and your own joint aspirations. Thus, the status of associé is only going to be relevant if you set up a limited company. You need to discuss with your accountant as part of the set-up procedures.

In practice, unless the spouse plays an active, openly public part in the running of the business, you may be able to get away without having to declare their participation, provided, of course, they are also willing for that to happen!

In addition, if they also have other employment outside of the business, where they are exployed for at least half the normal working week, they are exempted from this rule.