[balfirevic]

I wouldn't take namday's comment at face value without some kind of citation.

It could be that it works similarly to Croatia - it's not illegal, but if you are found to be "a hidden employee" you simply owe taxes and retirement/healthcare contributions as if entire income of your single-employee company was your salary.

It could be that it's actually illegal in France. But many people are confused about how it works here in Croatia, so it wouldn't surprise me if it were the case in France too.

[namdnay]

I completely agree with what you say, it depends on the specific setup (specifically, whether a judge will consider that it was an employment relationship). My statement was in response to someone who was clearly describing an employment relationship:

> The "employee" creates a single-person company in Poland

[balfirevic]

Yes, I was also referring to a scenario where you create a single-person company and have a single source of revenue from a de-facto employer.

Is it really illegal in France or do you just owe more taxes/contributions than if you had multiple clients (which would allow you to take part of the revenue as company profits, instead of having to channel it all as a salary)?

Looking at your comment [0] it sounds like it might not be illegal (provided you pay the required taxes/contributions)?

[0] - https://news.ycombinator.com/item?id=32320422

[namdnay]

It would be illegal in France to do it without declaring yourself as an employee, and therefore paying contributions . “Illegal” as in if you get caught you’ll get a fin and back-taxes, not jail or anything

[wrzuteczka]

OK, so it sounds like it’s possible in France too, you just need to employ yourself (and then pay employment-related contributions). In Poland, this is a little simplified, as there’s a company structure called “single-person company” (I’m sorry, this is my own translation of the term, it’s probably not the best) which combines these two things (i.e. after creating this type of company you pay social security for yourself, without any extra employment contract).