From Reporter Issue 89

FORMS AND FORMALITIES

Like almost everything else in France, setting up in business entails a multitude of formalities and filling out forms. Unlike most other aspects of French bureaucracy, the business community has organised itself so that these formalities are relatively painless.

Your CCI (Chambre de Commerce et d’Industrie) and Artisans Registry (Chambre des Métiers) are vital allies which will show you how to go about setting yourself up. They even publish a guide in English “Setting up a Business in France for non-French Nationals” (7 euros from the CCI).

Probably the best – but most expensive – procedure is to make an appointment with a good local expert-comptable (chartered accountant) or business lawyer and explain your business project to him. Take his advice on how to structure your business legally and financially and let him do the formalities for a fee. Also, let him handle your monthly, quarterly and annual declarations and keep your formal books. This might not be the cheapest option but it’s likely to cost less than getting it all wrong.

Don’t bother calling the Reporter about which accountant to choose – we don’t give out that sort of recommendation. A better idea is to ask friends or other business people who they use and whether they’re happy with their choice, or simply pick an accountant near to you from the yellow pages and make an appointment. Don’t hesitate to consult several before making your final choice. This person will be one of your most valuable collaborators. A big no-no is to get advice exclusively from overseas. We’ve seen UK-based accountants set up French businesses with disastrous results. Use someone established locally.

CFEs (Centre des Formalités des Entreprises) exist so that the small businessman doesn’t have to deal with a myriad of different bodies in order to set up a single-person business. Thanks to the CFE you can accomplish the main legal, fiscal, social, administrative and statistical formalities all in one place at one time. The CFE will handle your registry with the RCS and INSEE and see to the attribution of your SIREN, SIRET, NAF (formerly APE) number which denotes exactly what type of activity you are licensed to carry out. (You can’t sell bagels on the back of the NAF number of a plumber). They will also declare your existence to the tax authorities, handle your initial obligatory health and pension insurance registration and affiliate you with the appropriate URSSAF, ASSEDIC and CRAM caisses.

When you’re setting up a business it’s a good idea to check whether your sector of activity requires special permission, accreditation or insurance.

Obviously medical and legal professions require specific qualifications, but they’re not the only ones. Ski and scuba diving instructors must have special accreditation, as do hairdressers and estate agents. If you’re chauffeuring or transporting passengers, you’ll need a taxi licence or transport de personnes licence and proper professional insurance covering paying passengers.

Even publishing has special requirements. If you want to start a Reporter clone you’ll have to accomplish all the standard formalities plus quite a few more. You must appoint a directeur de la publication who is responsible before the law for everything that’s printed in the magazine. You’ll have to declare your title to the Bibliothéque Nationale, acquire an ISSN number (issued within hours) and make adépot legal for each issue. Your NAF (APE) number must correspond to a publishing activity. If you’re sold on the news-stands you usually need a Commission Paraitiare accreditation which limits the advertising-to-editorial space ratio and the percentage of free copies which can be distributed. The CP number also allows a reduced VAT rate on news-stand sales (but not ad rates).

So check it out. You might be more special than you think.

Comments (0)

Subscribe to this comment's feed

Show/Hide comments

Show/Hide comment form