Information on Starting a Business in France Including the new option of "Auto-Entrepreneur" This is guide to setting a business up in France, is not meant to be complete but when used in conjunction with the webpage on business structure in France, it will help you come to a decision on setting up your business. We always advise that you should get professional advice either from ourselves French Liaison or from a qualified chartered Accountant. The reason is that although we can give you an overview of setting up a business it does not take into consideration things that only apply to people individually, also every business is different. It is also important to to have good advice as to which activity the business comes under, and which business structure or tax regime to use.

Auto-Entrepreneur

There is now the new option of Auto-Entrepreneur which is the same principle as the Mirco Enterprise which is mention below and on the Business Structure page. The difference with the Auto-Entrepreneur system is it is open to anyone to register without having to attend the Course "Stage" or paying any fee's to register, in fact it can be done on the Internet. The main principles of the Auto-Entreprenure are as follows; a) No Fees b) register on the Internet c) Pay contributions on a Pay as you go basis d) Minimal paperwork e) No course "Stage" to attend Whilst the main advantage is that you only pay contributions "cotisations" based on your current turnover. Therefore, every three months you will declare you earnings and your contributions will be calculated on that figure. The % on services will be 22% of turnover up to a maximum of 32,000€ and on Sales 12% up to a maximum of 80,000€. (These approximate figures but near enough to give an idea of your contributions)

The advantage of this system is that those who just want to top up their income with working a bit here and there can do so legally, they do not have to take the chance of working on the Black. This will particularly suite those that are retired and only want a small income that are already in the Health system and do not need to qualify for health cover. The only real disadvantage is for people that want to get into the French Health system, they would have to pay contributions of at least 2500€ to qualify, although I would say at this stage things are not too clear on this. We will probably have to wait to see how it works out in practice. If you would like more information, or you would like us to register your business on your behalf, then just e-mail help@french-liaison.com

The main business options are listed below and a full explanation of each one can be found on the business structure page.

Traditional Business Options

1) Enterprise Individuelle (EI) or Travailleur Indépendant (one-person business/Self Employed):

2) Entreprise Unipersonnelle à Responsabilité Limitée, better known as an EURL (single person limited company):

3) Société à Responsabilité Limitée, better known as a SARL (Limited Liability Company/LTD):

4) Société Anonyme, better known as an SA (equivalent of a plc in the UK):

The most important questions to ask are: 1) What is my first choice of activity i.e. Plumber, Gardener, Electrician, Shop, Restaurant etc.? 2) What is my annual turnover likely to be? ( remember for Micro Services are max 32000€ ) 3) Is the income going to be from Services, Sales or a mixture of both? 4) Is the turnover going to include purchase of Stock/Materials, or just labour. 5) Are there going to be startup costs, i.e. Tools & Equipment and/or a Vehicle? 6) Is my partner/Wife going to work with me or do some work in the business? 7) Am I going to employ people? 8) Which Business structure i.e. (EI) Self employed, (SARL) Limited Company LTD? 9) Which regime i.e. Micro, Réel, TVA (VAT) It you are registering as an artisan (tradesman) i.e. Electrician, firstly you will have to provide proof of your Qualifications and or Letter on Headed paper from a previous employer stating the number of years that that you worked for them and in what capacity.

Depending on which department you are registering with you may have to have it translated into French. You will also have to attend a 5 day course (Stage). These are usually in French but some departments such as the Dordogne (24), run them in English. So try to find the nearest one in English, it does not have to be in your home department. At the moment you have to attend, the usual cost is 310.00€. If you are registering as a Gardener or opening a Shop for example these are classified as commercial, and you are not required to attend the 5 day course (Stage).

I can not emphasize enough the importance of doing a forecast (prévisionnel) or (chiffres d'affaires), besides the fact that it makes you think about how you are going achieve the level of earnings you require to survive. It is useful to use the figures to be able to estimate the Social contributions (cotisations) you will have to pay. Registering a Business (Enterprise Individuelle) (EI) For the majority of british people setting up a Business in France, the best option is an (EI). And to adopt the Mico-Enterprise tax regime. Advantages are it is simple to operate, on services your profit is assessed at 50%, therefore you pay social contributions ( health, social security & pensions) on 50% of your turnover, you will not pay income tax, you do not have to keep detailed accounts, it is not highly regulated. Disadvantages are it does not take account of real expenditure, it does not have any real value as there are no proper accounts this also makes it difficult for borrowing money.

Business Registration Centre's Commercial:

Chambre de Commerce et d’industrie Trade/Artisans:

Chambre de Metiers et Artisans Profession Liberale:

URSSAF Agent Commercial: Greffe Agriculture:

Chambre d’Agriculture Others: Centre d’impôts