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Self-employment is a misleading term, as it has nothing to do with employment, and as the income generated is treated as business income. The term business will in the following refer to any type of independent, non-salaried activity, whether exercised in a limited or other type of company or not.

As for the legal form of the business, the basic choice is between: 

- entreprise individuelle (individual business) where the business activity is exercised by a personne physique (natural person), and where the income can only be subject to income tax,
- various types of société (company), such as SA, SAS, SARL, where the business activity is exercised by a personne morale (legal entity), and where the income can only be subject to company tax,
- and a couple of hybrid forms for a single entrepreneur, such as EURL, where either type of tax can be chosen.

Business income is either industrial and commercial (BIC) or non-commercial (BNC). Any sort of sale of goods is commercial, while more abstract professions are non-commercial (advice, counselling, lawyer, doctor...). The definition of commerce appears in the beginning of the Code de Commerce.

You will also need to choose a tax scheme.

For the individual types of business, the simplest form is auto-entrepreneur if the revenue is below a certain amount. Instead of paying 10 different social security contributions, you pay a flat rate each quarter or month based on your actual turnover that period. The amount paid is final. This is close to the British self-employment model with the notable exception that no expenses can be deducted so you are taxed on your gross invoicing. Income tax may be either an additional flat rate or treated as salary on the tax return. You are automatically VAT exempt. Beware that if real estate is used for the business, you may have to pay the Cotisation foncière des entreprises (CFE) element of the contribution économique territoriale (CET) in addition. This tax is also mentioned on my tax page.

The next simplest option is micro-entreprise in various forms and denominations if the revenue is below a certain threshold. In a micro-entreprise, the fiscal deduction of business expenses is replaced by a fixed allowance as a percentage of turnover. The fixed deduction varies between 37% for non-commercial activities such as the liberal professions to approximately 70% for commercial and industrial activities. If you are a micro-entreprise, then you are automatically VAT exempt. It makes life simpler, but the 37% for non-commercial activities often doesn't cover the actual expenses, and in the beginning of the activity, before the business is developed to become profitable, you lose a large part of your fiscal deductions. Becoming VAT exempt is not automatically beneficial.

Below a certain threshold, with or without micro-entreprise, you have the option of becoming VAT exempt. Consider whether your clients are mostly VAT registered or mostly individuals.

If you have the choice, consider that under current law and practice, women who create or take over businesses may obtain credits guaranteed by the State and women with small children get priority if their business is in difficulty and they apply for help paying social security contributions. Men in the same circumstances are excluded or do not have priority. This is clearly illegal discrimination but for so long as the discrimination continues, a couple starting a business may be better off having the woman as owner than the man.

Many expats moving to France keep their foreign-registered companies in place abroad, keep them taxed abroad and don't register them in France. The most common reasons are to avoid the complexities of French administration and the high taxes and social charges in France. Many refer to the right of any EU national to run companies in other member states. They make the assumption that a company is necessarily taxed in the country where it is registered. They overlook the fact that the double taxation agreements between France and other countries contain very complex rules for determining the country where a company is taxed. The basic rule is that if you keep running and managing a foreign company from France, then the company is taxable in France, regardless of the country where it is registered. If it were really that simple to avoid French charges, then there wouldn't be many companies left in France. But it is not that simple. It is in fact extremely complex to set up a legal arrangement to manage a foreign company and have it taxed abroad. In reality, many expats are committing tax evasion and exposing themselves to heavy penalties if the taxman finds out. The French tax authorities may be messy, but they are not stupid, and they are aware of this sort of tax evasion, whether it is committed in good or bad faith. If they suspect that major fraud is taking place, then they can and will raid your home and business premises and turn everything upside down. There is a further complication in French tax law called abus de droit (law abuse). It is a measure that says that if you make a legal fiscal arrangement with the sole purpose of paying less tax, then the taxman can legally disregard your arrangement and tax you according to the reality of the situation. Morale: Don't play amateur with your business arrangements but get professional advice to assure that you can sleep at night. You may end up with the conclusion that many others have arrived at: That France is not a business-friendly country and that it would be more profitable to run your business elsewhere. It may mean that you cannot live in France but only visit the country without becoming resident. You can't have your cake and eat it. If you want to live in France, then you must accept it with all its quirks - or run the risk of being ruined the day you're found out.

A foreign business that has a subsidiary in France with a business establishment and employees in France must register with the local Centre de Formalités des Entreprises (CFE) according to the type of activity taking place. See the Directory of CFEs.

A foreign business that has no business establishment in France but employees in France who are subject to French social security must register with the Centre national des firmes étrangères (CNFE) at the Urssaf du Bas-Rhin which is responsible for this specific situation.

A foreign business that has neither business establishment nor employees in France but activities subject to French tax, such as for example VAT or corporate tax (impôt sur les sociétés) must register with Service des impôts des entreprises étrangères (SIE).

And now that we're at it, let's quash another myth: That it is only a matter of counting days to determine where you are resident for tax purposes. The days criteria appears in list of criteria to determine tax residence in the double taxation agreements after the following criteria: Where you have a permanent home and where your personal and financial ties (centre of vital interests) are. For example, if you've installed your family in a home in France and you travel outside France more than half the year, then you are still liable for tax in France, unless you can show that your financial interests outside France are so strong that they outweigh the interest of your family in France.

Business Links

See also Office Equipment & Stationery.

Business information sites:

Infogreffe. The official French business database.
Manageo. Get information about any French business. More free details than on most similar sites.
Cofacerating. Get information about any French business.
Societe. Get information about any French business.

Auto-Entrepreneur sites:

L'auto-entrepreneur. Government site where you can open a new business online.
Chamber of commerce: Information about auto-entrepreneur.
Auto-entrepreneur. Private site with advice for auto-entrepreneurs.
Planète auto-entrepreneur. Private site for auto-entrepreneurs.
Planète auto-entrepreneur: How to declare your activity. Guide.
Planète auto-entrepreneur: Add yourself to a free directory of auto-entrepreneurs.
Autoentrepreneurs. Magazine for auto-entrepreneurs.

Financing your business:

Médiateur du Crédit. Ombudsman service dedicated to businesses being refused credit.
OSEO. Government scheme to help financing businesses.
ADIE. Association helping people create small businesses by providing micro-credits if other credit methods cannot be obtained.

Protecting your trademark:

INPI. Institut National de la Propriété Industrielle. Protection and registration of French trademarks.
OAMI. Protection and registration of EU trademarks.

More or Less Official sites

APCE (Agence Pour la Création d'Entreprises). Help and info for starting a business. Official site.
CFE-metiers. Business creation online for artisans and craftsmen. List of all the chambres de métiers.
CFENET by the Chambers of Commerce: Open a business in the trade sector online.
European American Chamber of Commerce (France).
European Commission: European portal for small businesses.
Greffe du Tribunal de Commerce de Paris. Official site.
Greffe du Tribunal de Commerce de Paris - Business creator's kit. Official site.
Guichet-Entreprises. Official site guiding you in creating a business.
Marketing Pour PME. Official site assisting you in your marketing.
PME-Commerce-Artisanat. Ministerial site for business creation.
APCM. Assemblée Permanente des Chambres de Métiers.
Service-Public. Business information portal. Official site.
Net-entreprises. Business declarations online.
UCANSS. (Union des CAisses Nationales de Sécurité Sociale). Official site.
UCANSS. Employer's social security guide.
URSSAF. URSSAF collects social security contributions from employers, be it individuals, self-employed or companies. Official site.
CANCAVA. Pension fund for artisans and craftsmen registered in the chambre de métiers.
CNAVPL. Pension fund for liberal professions and freelancers.
CANAM. Health cover for liberal professions and freelancers.

Other business sites:

Ask legal business questions online. A service from Telexper.

01net. IT magazine.www.annoncemarchepublic.com».
Investinfrance. Information for foreign businesses wanting to create businesses or invest in France.
Investinprovence. Information for foreign businesses wanting to create businesses or invest in Provence.
Annoncemarchepublic.com. Calls for tender.
Annuaire Entreprises. Free business directory.
Le Bon Coin. Classified ads.
Business in Europe. Expanding your European business from France.
CIGREF. Club Informatique des GRandes Entreprises Françaises.
Companeo. Catalog of products and services for businesses.
Création Entreprise. Help and information for starting a business.
Creer-une-entreprise. Practical information about starting a business.
Decideur. Business news, newsletter, directory and much more.
Decideur - Advertisements.
Decideur - Business directory. Browse & list your own business free of charge.
Decideur - Club. Site for the business community.
Decideur - Info. Business news, newsletter, directory and much more.
TPE-PME.com. For business creators. (TPE = Très Petite Entreprise = very small business; PME = Petites et Moyennes Entreprises = small and medium-size businesses)
Entreprise & Droit. Legal business information.
l'Entreprise. Business magazine.
Freelance.com. Site to help independent providers get in touch with businesses that need their services.
Freelances en Europe association. General site for freelancers.
French American Chamber of Commerce.
GroupeRF. Legal portal for business.
Import - Export. Assistance from Teknea.
Libérez votre esprit d'entreprise. Government site to help business creation.
Macompta. Cheap online accounting service.
Microsoft - Business France.
Metro. Cash and Carry France. Large stores.
NetPME. Business portal.
Paris-Entreprises. For businesses in Paris.
Portail PME (Petites & Moyennes Entreprises). Business portal.
Portail PME. Index of aid available for businesses.
Rebondir Magazine. Job and Business creation.
Union Nationale des Professions Libérales.
Village Magazine. Create your life in the countryside.