The time to start a business in France or in another country, it always generates some nervousness on the part of the entrepreneurs. Due to the lack of information or due to the high bureaucratic processing required, many end up not even risking their business. The good news is that in France this process of starting a business it is cheap, it takes little time and the necessary steps are few. For this reason, this country is one of the most accessible in Europe for both French and foreign entrepreneurs.
The necessary formalities for start a business in France are simple. In other words, the entrepreneur only has to address one single entity, the Corporate Formalities Center (CFE). Here, the cost of the registration request varies depending on the type of company to be opened and all associated processing takes approximately 4.5 days.
It is only necessary that the entrepreneur be a European citizen or have a residence permit. In addition, qualifications or diplomas recognized in France may be required for some specific activities.
Type of business
The entrepreneur first need to identify what your type of business and in which category it falls. Business in France is divided into 5 categories, each of which has its own place of registration. The entrepreneur must register his future company in the correct location and notify the company of any changes. The categories are:
- Commercial or industrial (cafe, store or factory, for example);
- Business / craftsman (construction, crafts, manufacturing, for example);
- Independent professional or freelancer (dentist, writer, programmer, for example);
- commercial agent (sales on behalf of another company, for example);
Another step that it must take before applying for Business Registration It is whether the profession to exercise is regulated by the French government. Some professions such as veterinarians, hairdressers, accountants are regulated and which is subject to individual registration in the appropriate organization and proof that it has the necessary qualifications. You can check by APCE what are the sectors regulated by the French government.
Also, you must verify that the name of your company is no longer being used by another through National Institute of Industrial Property (INPI) the entrepreneur can do it online for free and, if they so wish, register your company name as a trademark, thus ensuring protection.
As mentioned above, the Corporate Formalities Center (CFE) is the single point of contact that the entrepreneur needs to establish start a business in France, And the application for registration can be sent physically or online. This will inform entrepreneurs about the regulations of company creation, will provide the required forms and then gather all documents and transmit the request to the responsible agencies.
After completion of Business Registration, O National Institute of Statistics and Economic Studies (INSEE) will send 3 identifications to the entrepreneur: SIREN, SIRET and APE. The first consists of 9 unique numbers that represent the official proof that the company is registered and this identification will be used by all government and official bodies when referring to the company. The SIRET consists of a 9-digit number representing the location of the business and finally, the APE consists of 4 digits and a letter that represents the main activity of the business.
An asset that the French government has towards entrepreneurship is that banks are obliged to provide financial support to all new businesses. Specifically, a loan of up to 7000 €. Another feature is that the ACCRE It provides financial support to unemployed people or are about to lose their jobs and want to create your own business, reducing social charges for up to three years.
In addition to these exclusive support, there are other types of domestic support the entrepreneur can seek for support needed.
All businesses need to be registered so that they can start operating. Thus, the necessary documents to apply for Company opening are:
- Proof of address;
- Identification (valid passport or residence card)
- Proof that your spouse understands the responsibility, if applicable.
- Finally, it may also be necessary to deposit funds in the notary or bank draft statutes for the company, elect a CEO and publish a notice of incorporation in a legal newspaper.
Fees and taxes
After start a business in France successfully, it is necessary that the entrepreneur understands its obligations on the French government through taxes. Stand out then the most common taxes:
First, we have the rate applied to personal gain, whether they are employees of a company or on their own, whose value ranges from not apply to gains for 9964 € and 45% for gains of more than 156,244 €.
Some types of companies have to pay this tax, and the amount also depends on these capital structure. one 28% rate is set to taxable income of up to 500 000 € and 31% higher than for profit.
You need to make contributions to social security by salary. at 40-45% fee is charged for bosses and a rate of 20-25% for employees.
Tax Value Added Tax (VAT)
Defined as a 20% rate however, there are reduced rates of 10% for hotels, restaurants, public transport and cultural and sporting events, 5.5% for food and books and 2.1% for newspapers.