Micro Entreprise

[LePaul<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><SP]

I've recently finished registering my entreprise. The local CCI folks were brilliant help. My limited French didn't help the process of course but I managed to get through it okay.

My question is this - I have had several definitions of the Micro Enterprise system and none of them coincide with any of the other definitions. Is there any definitive information on this and the Simplifee system which I can use to determine which method to opt for.

Cheers

Paul

[Quillan]

Not to sure if this is what you mean but here goes.

I have a document issued by the CCI dated Jan 2002 which we were given and it descripes the different regimes based on earnings.

Micro Enterprise - 0 to 76,300€

Regime Real Simplifie - 76,300 to 763,00€

Regime Reel - Greater than 763,000€

One should not confuse Micro Enterprise and Micro Biotic. Micro Enterpise is the method of registering with the CCI and determins how social charges are worked out whilst a Micro Biotic system is how the tax is worked out and applied by the Tresor Public but it is linked to the Micro Enterprise.

We also have another document that tells you what the social charges are and how they are worked out. They are fixed for the first and second year at 2,538 and 3,746 repectivly.

There are two ways round paying these amounts. You have the right to challenge them based on the fact that you feel that your turnover will be so small that you will have little left after paying them. You challenge them by writing to URSSAF, the Caisse Regioale des Artisans et Commercants and the Organisms Conventionnes that you have elected, in my case AGF Insurance. State your case and give them a copy of your cash flow predictions which are really your estimated turnover in the first and second years. They will then work out a percentage using the same calculations they use to come up with the first two years fixed payments. If you go a penny over your estimated turnover then the full amount becomes due. Come the third year you will pay percentages based on your turnover.

Another way round it is not to declare yourself to the CCI for the first, or even better the second year. On arrival in France go to the Tresur Public and make them aware that you are here and ask for a tax form. Also explain that you will be running a small business and will be registering with the CCI at some point and that your earnings will be under 76,300€. They will then register you as a Micro Biotic. Obviosly you will have zero income because you have just got here and your last tax was paid in the UK, you should attach a copy of your P60 to the form. You are now in the system. At the end of the first year you will receive your tax form, complete it and sit back and wait.

You will get your statement back within a few weeks. There are a set of numbers on the statement which although I don't know how they work I know what they do and they are very important. If you are lucky and have not earned much you will also get a form from CPAM that entitles you to free medical (up to 70%) and you if you are really lucky you won't have to pay Tax Habitation either. The magic numbers put you in the different bands and determin how you should be treated by other government departments. You are not cheating the system because if your income after deductions and tax is still over your personal allowances you will have to pay cotistations (on the remainder) but they will be worked on a percentage rather than a flat charge.

Now you can go along to the CCI and present this form/s and start to register. Because it is a true official statement of your French earnings in France based on the Micro Biotic tax regime they have to work your cotistations out based on it as a percentage and cannot charge you the first two years fixed cotistations.

If you get a really good CCI person they will explain all this to you, which they did with me and it's how I 'got in' so I know it works.

Hope this helps.

[LePaul<P class=MsoNormal style="MARGIN: 0cm 0cm 0pt"><SP]

Wow - cheers Quillan.

I've printed it off to study it in more detail.

Thanks for taking the time to respond as you did.

Paul