Company
Company director
By the Finances Indépendants editorial teamUpdated on 3 min readAlso known as: Manager, Director, Business owner, Mandataire de société
Summarise this article with
Contents
Who is a company director?
It is the individual who holds a mandate in a company: manager of an SRL/BV, director of an SA/NV, member of the board of directors. A directorship is distinct from an employment contract: there is no subordination and no employment relationship.
Coverage by the social security scheme for the self-employed follows automatically. A presumption applies, even when the directorship is unpaid: it is holding the mandate that triggers the obligation, not receiving income.
The unpaid directorship trap
Many people think an unpaid directorship means no contributions. The opposite is true: the presumption of coverage applies, and the director must join a social insurance fund as soon as they are appointed.
Rebutting the presumption is possible but tightly regulated, and requires proving that the directorship is genuinely unpaid under the conditions laid down. A decision by the competent body expressly providing that it is unpaid is the minimum, and is not always enough.
If the director has not joined, the fund regularises retroactively with surcharges. It is one of the most frequent back-payment claims in a NISSE (National Institute for the Social Security of the Self-employed, INASTI/RSVZ) inspection of a recently formed company.
Why the director's remuneration matters so much
The director's remuneration is not just income: it is a parameter that governs three regimes at once, and cutting it to save tax has knock-on effects.
- The reduced corporate income tax rate, 20% instead of 25%, requires a director's remuneration of at least €50,000, or equal to taxable profit if that is lower.
- The IPC ceiling is calculated on this remuneration, via the 80% rule: low remuneration automatically caps the pension that can be built up.
- Social security entitlements and the statutory pension are built on NISSE contributions, which are themselves based on this remuneration.
What the status opens up
Coverage gives access to the schemes reserved for the self-employed. First the PLCI/VAPZ, outside the 80% rule and 100% deductible up to €4,086.34. Then the IPC, funded by the company and deductible from corporate income tax.
It is this combination that makes incorporating worthwhile from a wealth-building point of view: a self-employed person trading in their own name has no access to the IPC, and an employee has access to neither.
Not to be confused with
The terms close to Company director and what sets them apart.
- Company director and the salaried manager
- An employee of the company falls under the NSSO and the employee scheme. A company director holds a corporate mandate, without subordination, and falls under the NISSE.
- Company director and the ultimate beneficial owner
- The director manages the company; the ultimate beneficial owner owns or controls it. The two often coincide in an SME, but the resulting obligations are separate.
- Company director and the non-managing shareholder
- Holding shares without a directorship does not bring coverage under the social security scheme for the self-employed. It is holding the mandate that triggers it.
Further reading
Company director: frequently asked questions
Self-employed for social security purposes. A company director is covered by the social security scheme for the self-employed and pays contributions to the NISSE through a social insurance fund, not to the NSSO.
In principle, yes: a presumption of coverage applies from the moment of appointment, regardless of remuneration. It can be rebutted, but this is tightly regulated and requires proving that the directorship is genuinely unpaid.
The €50,000 threshold is a condition for the reduced corporate income tax rate, and the remuneration is the basis for the IPC ceiling via the 80% rule. The trade-off is made on these three simultaneous effects, with your accountant.
Retroactive regularisation by the fund, contributions and surcharges included, for the entire period of the directorship. It is one of the most frequent back-payment claims during an inspection of a recently formed company.
Yes, and that is its main advantage for building wealth. The PLCI/VAPZ is open to any self-employed person who is up to date with contributions, up to €4,086.34, and the IPC is reserved for company directors.
Official source
- NISSE. View (new tab)(Official source, accessed on 2026-09-19)