New Company Type in France - Auto Entrepreneur

From 1 January 2009 is easier, cheaper and faster to create a small business in France than it was in 2008.

The French Government has decided to simplify the system drive of the entrepreneur with the reduction of social charges, the minimum capital requirement, simplifying the administrative conditions of creation. It 'really easy and less expensive to start a small business in France, even for foreigners who settle in France.

With this new law, a small business can be set to Internet. The entry in the "Registre du Commerce et des Societies (RCS)" or "Registre des Métiers (RM)" is no longer mandatory. In addition, the individual entrepreneur can with a statement made by a notary, to avoid the chance for collectors to seize his property, but only if they are not used for other business activities. The need for an administrative permit to use the ground floor of the main house as an office or business premises will no longer be compulsory.

This new auto entrepreneur system applies only to 2 types:

- For a business that has a turnover of less than EUR80, 000/year (not including VAT) with a business of selling goods, objects, furniture, catering business of providing accommodation.

- For a service sector that have a turnover below 32000EUR/year and fall into the category of industrial and commercial benefits or non-commercial benefits.

Moreover, the entrepreneur drive now has the opportunity to choose between paying his social charges monthly or quarterly and are calculated by means of a commission on sales. This percentage is 12% for commercial and 21.3% for an action in the service sector.

The main advantage is that if an entrepreneur does not have a car turnover, which will not pay social security contributions. The tax system of the new auto entrepreneur system is also beneficial. In fact, if the maximum level of income is reached, monthly or quarterly fee is based on a percentage of turnover:

- 1% for a business selling goods, objects, furniture, remove or provide housing.

- 1.7% for a business to which the activity is to provide services that are not the threshold of 80 000EUR.

This option is only available for the auto entrepreneur who have chosen the system of "micro-social" (ie, the system in which the entrepreneur can choose between automatic monthly or quarterly payments of income tax). If the minimum level of income is reached, the system of taxation will be the unique "micro-enterprise" (a field man).

Another advantage is that the employer must pay the car is not "tax" on their business.

In conclusion, this new system is very useful for foreigners who want to create a small business in France (eg, writers, accommodation, translation, teachers ...) .......