Choosing registration date

[Bastet]

I remember reading on here in the past, but can't find the information now, that the choice of date for first registering as an artisan could detirmine whether initial cotisations are paid unecessarily.  Is anyone able to explain?

Thanks.

[Nick Trollope]

You must register when you need to. Remember that (in theory at least) you need to be registered before you can do anything (including sales and marketing). So you are probably in the best position to decide.

More importantly, and for a micro, the "year" of fixed cotistations starts in January, along with the tax year. So, if you start a business on the 1st December, you only have 1 month of "reduced" cotistations before you go into your second year.

Normally, cotistations are paid quarterly, in arrears. So if you register on 1 jan, your first payments will be due on the 1st April.

Starting any business requires very careful planning, the French system does nothing to make it easier!

[Bastet]

Thanks for the reply Nick. 

I'll be attending the business course in September and plan to set up under the 'reél simplifié' regime.  I have work to finish in our own house so to a certain extent, am able to choose the optimum date when to start working.

Do fixed/reduced cotisations also apply to the 1st year of the above regime and does the 'reél simplifié' cotisation year also run concurrently with the tax year?   i.e., is it in my interests to hold off until 1st Jan? 

Apologies if these are dumb questions; but as you say, I'm trying hard to plan and not leave myself open for too many nasty surprises.

 

[Nick Trollope]

Yes, I think they do and consequently, holding off until 1/1/07 would make sense.

 

[chris pp]

I can never see why it matters that much Nick as it all balances out in the long run, it's not so much that the charges are actually reduced so much as partially suspended only to be paid later. Where there clearly is an advantage is if you are going to be liable to actual tax and the place where you are establishing your enterprise is in an economic development zone which has for example the first two years at zero tax.

No doubt someone will explain the arithmetic to me by way of a few examples.

Chris