Micro - Commercant

[Diana]

We have just had a very positive meeting with a business lawyer at the Chambre de Commerce, who is the first person who has shown us the way through the wood from the trees.  She said it is possible to do all the things we want to, and to be a Micro, all the other 'experts' said non, non, non we would have to be a SARL. The only outstanding point which I thought I had grasped but am now not sure I understood is; I thought as a Micro you could work for the first year before paying tax and social charges but as a commercant you started paying the charges based on an average rate almost at the end of month one. So how would a Micro/commercant work.

Less confused than yesterday but still not there yet.

Also while we were there I picked up a glossy fold out A2 fact sheet, proudly claiming France is the 4th easiest/best country to start a business, Ireland came first and the UK second.  My sympathy goes out to those in counties 5, 6, 7 etc! It laid out in a table format the showing equivalent business structures in each country, tax rates, working week, social charges etc etc. And a star rating for bureaucracy

If anyone can answer the micro/commercant issue it would put my mind at rest.

Thanks

Diana

[Owen]

Hello,

Under special circumstances you can avoid social charges in your first year but it is not the norm. For example, I think if you have been registered unemployed you may be able to do so. You can also defer, but not actually avoid, the payments due in the first 12 months. Otherwise the charges are due from the day you register your business and in your first year you can expect to pay just under 2700 Euros whether you earn anything or not. You are not exempt tax either but after expenses allowances and the heavy social charges the income tax burden is unlikely to be very heavy. You do not pay "taxe professionelle" in your first year.

The disadvantage with a micro is that it only applies if your annual turnover is under certain levels; 76000 Euros if you are buying and reselling goods and 27000 Euros if you are a services business.

Regards

Peter Owen

pjowen@rivieramail.com

[Bex2www.expat-equestrian.com]

Hi Diane

I have just recently finished going through the process of setting up a business and i am i micro. My accountant has done all the leg work for me, thank god! I as i can remember when he was explaining the tax with me, He said that i could put off the tax payments for a year but advised against it as for the next four years your rates will be higher! I'm not an expert on this subject just thought i would pass on the little info that i picked up on.

Hope this helps

Bex