British Business

[Wisky in The Jar]

Hi all, I hope that someone can give me some advice.

I have been living and employed in France for three years although my contract is shortly coming to an end.

When I lived in the UK, I had a business as a sole trader and would like to start this again in France.

I believe I must go to Chambre of Commerce to register the business and to see an accountant here in France to arrange paying my taxes etc here.

Whilst this is in the process could I trade as a british business even though all profits will be declared to my accountant in France to pay French taxes etc., or do I have to wait to be properly registered?

The business is manufacturing where clients will be invoiced for products ordered.

Many thanks

[Will]

You cannot start trading until you have received your Siret (registration) number. You could only trade as a British business if you, in effect, register yourself as a French subsidiary of the business (you cannot escape the registration) or you employed yourself through an umbrella (portage) company, which would be even more expensive than having your own business.

As you propose being a sole trader, if your turnover is low then the autoentrepreneur scheme simplifies the registration and means you do not necessarily need an accountant. However, you pay taxes and charges based on turnover rather than profits and cannot charge or recover TVA, so it is not suitable for all types of business. As a manufacturer you would probably be better off with a 'proper' business though there is nothing to prevent you starting as an AE, other than the turnover limit.

[Wisky in The Jar]

Great, thanks for that.

Another question, I currently live in the north but would like to relocate somewhere down south. Could I start getting the wheels in motion and setting up the business with my local chambre of commerce? Also would I need an accountant at this stage as I would prefer to choose a local accountant down south.

[Albert the InfoGipsy]

How much of a hurry are you in? I don't think it takes very long (a few weeks?) to set up an EURL or a SARL and an entreprise individuelle under the réel regime is probably quicker.

When I was looking into starting a new business  -- not in manufacturing -- over here I went to the local chambre de commerce and they offered me a mentor to help setting up a EURL, but I wanted something smaller and short-term so settled for AE. It would be well worth asking at your C de C about what help they can provide.

I agree with Will. AE is probably not a good long-term solution for a manufacturing business unless your costs, including raw materials, are low. That said, if you are in a tearing hurry you could register as an AE as a temporary measure. This year you would have a turnover (total sales, no allowance for costs) limit of about €40,000 and pay 12% of your turnover in cotisations. It's normally €80,000 but if you start part way through the year they calculate pro rata.

The only thing that concerns me is that sometimes French bureaucracy can be a bit (!) slow when it comes to things like changing regime, so you might have fun keeping your SIRET when you set up your permanent business.

 

 

[Wisky in The Jar]

Thanks Albert. Could I get the wheels in motion where I live so that by the time I move to a different region I will be ready to go?

[Will]

I've never actually done that, but as I understand it the first nine digits of a Siret number (this part is known as the Siren) give the actual business registration number, and the last five denote the 'establishment'. So a business with several branches has the same Siren, followed by different establishment codes. Based on that, I see no reason, other than the chance of attracting bureaucratic hassle, why you could not register one establishment, then add another when you move to your new region and close the first if you want to do it that way. I'd personally be inclined to leave it a bit longer though so you didn't have to change things.

Not knowing exactly what you would manufacture, I'm not sure whether you would qualify for the higher 80,300€ AE turnover level. As you are making things rather than just buying something in and selling it on, you might be limited to the lower 32,100€ limit. It all depends on what sort of value you add to the basic product and how you are regarded by the Chambre de Commerce. So another reason for favouring the 'réel' regime rather than a micro-business.

[Albert the InfoGipsy]

Sounds clear enough to me.

80,000€ for commercial businesses selling goods, articles, supplies and foodstuffs to take away or to be consumed on the premises and provision of accommodation.

http://www.pbss-uk.com/AEGuide_March2009_EN.pdf    Page 3

It doesn't mention whether the goods are bought in or manufactured.