In the past starting a small business in France was an administrative nightmare and financially often not viable. I have been offered small bits of work in the past but had to turn them down. The old system meant that payment of social charges was based on a set amount for the first two years (3000€ in year one). A bill of 3000€ in the first year of a small startup is a definite turn off.
The new system, Auto Entrepreneur, (lautoentrepreneur.fr in French) is more like a self-employed system where you pay charges based on turnover. More information in English is available at startbusinessinfrance.com.
One article that caught my eye was 120,000 registered so far which I think highlights the fact that people want to work for themselves but couldn’t in the past. In the top five professions using AE are computer programmers – which suits me fine.
In Brief, from startbusinessinfrance.com
The Auto Entrepeneur system is a pay-as-you earn system that offers an easy registration process and the ability to pay your social charges and income tax based on a fixed rate of your turnover. The purpose of the auto-entrepreneur scheme is to make starting a small business simpler and less financially demanding in the early years. It is also a low risk option to testing your market because if you do not sell anything, you do not pay any social charges.
Auto-entrepreneurs are not allowed to be VAT registered and have a yearly turnover limit of 32,000€ for services and 80,000€ for trade. Social charges represent 18.3% of turnover for professions libérales, 21.3% of the turnover for services and 12% for trade. Income tax will add an extra 2.2%, 1.7% and 1% respectively.
Yep, just moved to France (Pas-de-Calais region) from Greece because of it. Registered over the net about a week before we left Greece and my registration had already arrived in the mail when we got here!
Now I need to find some time to update the website with the relevant info and take the VAT off from all our products. It no longer applies! At least not until we hit the thresholds.
If finding a floor drum sander to hire was as easy
Bonjour
I am a young enthusiastic Austrian professional and would like to become
auto-entrepreneur in France.
I found this site and thought you might be able to assist me with some
up-front information:
- the field I want to work in is event consulting. Am I required to show proof
of my abilities and education in this field?
- I’ve read that the application is processed via online form. How long does
it take to approve?
- what legal documents are required for business opening?
- since this line of business is classified as ‘service’ my annual maximum
turnover is at 32.000 Euros which are taxed at 23 %, right? Do I have to
consider any other deductions? Is there a compulsory health insurance/
retirement fund fee due? What if I make more than 32.000 Euros?
- I am 23 years of age. Do I qualify for ACCRE (lower taxation)?
- what expenses can I claim to minimize my revenue before taxation?
(i.e. event management education, flights, transportation, internet, phone,
private health insurance plans etc.)
Should you require any further information about my background to give
detailed feedback, please contact me at any time
Regards
Melanie Haselmayr