micro business

[howardsue]

I've been offered work but I have to set up a Micro Business.Can anybody tell me what percentage of may earnings I would have to pay out in deductions or is there a web site I can look at ,preferably in English, as my French leaves a lot to be  desired.

Also if anyone has any tips ,advise or things to lookout for I'd be very grateful. 

[Will]

Have a look at www.apce.com (some pages in English) and www.urssaf.fr. You will find that for the first year or two you pay out a fixed amount in cotisations based on average earnings, as they don't know what you will be earning, though there will be adjustments at the end of the year.

Best tip - apart from not to set up a business in France, but that's not the answer you want to hear - is to find a good acountant. You don't strictly speaking need one for a micro business as tax deductions are done on a standard percentage of income (which is variable according to whether you are commercial or non-commercial) but you will get all sorts of useful advice about registering the business, what cotisations you have to pay, and the best way to pay them to suit you, all for a fairly reasonable fee. There are so many different bodies all wanting their pound of flesh that it can get very confusing, particularly if your understanding of the language and the system is less than perfect.

[Craig]

You will have to pay about 46% of your profit in social charges, It is doubtful if you will pay any income tax under microbic business structure. You will have to do the mandatory course prior to starting your business and depending on where you live in France you may be able to do the course in English.

During the first two years your cottisations are based on what the authorities think you will turn over as they will not know what your actual turn over is until the third year of your business. The cottisations in the first year are around nine hundred euros per quarter and I think from memory go up to about eleven hundred in year two.

I have all of the notes from the course but they are at home and I am at work so I am going from memory.

Hoe this helps a little.

Craig

[howardsue]

Thanks for those two sites, one was in English and proved quite useful

[howardsue]

Thanks for your reply it was really helpful  

[Jo53]

[quote user="Craig"]

You will have to pay about 46% of your profit in social charges, It is doubtful if you will pay any income tax under microbic business structure. You will have to do the mandatory course prior to starting your business and depending on where you live in France you may be able to do the course in English.

[/quote]

The course is only mandatory for some types of business. I am a professionel liberale registered as a microbic and I did not have to do a course - in fact a course was never even offered. I'm now in my 2nd year and I'm finding that I can claim a reduction on many of my cotisations because they are based on last year's earnings, which were low because I started half way through the  year. So the introduction has been relatively gentle - you are not asked for large amounts when your earnings are low.

Jo

[miaviv]

Another option is to find a "société couveuse or porteuse", they are

there to help those who wish to set up in business but are unsure how

it will work and whether it is in fact right for them.  They bill

your clients on your behalf and you are then paid a "salary" from the

couveuse company.  If this is of interest, try putting in société

(or even association) couveuse or porteuse and see what comes up.