What is the best French Business Structure for my circumstance?

MarcusD
· Viewed 1313 times

I am an Auto-entrepreneur living in France.  My business is as an online retailer / online retail consultant.

I sell products online and dispatch them directly from France. I declare these sales on my quarterly AE return, as sales (rather than services).  I am also registered and pay CFE on this French activity;

I also currently sell my services to 2 UK Online Retail companies (which I own), for which I charge fees declared in my AE quarterly return (as services). These UK companies sell their products from UK warehouses i.e. they are fully UK based:

Due to the dreaded word, Brexit, I am re-evaluating the structure of my activities.

Current proposed actions are that one UK company will close, and the other will be split into 2 most likely, with one new company in Ireland selling to the EU, and the old shell remaining in UK just serving the UK market.

The reason for choosing Ireland is that the retail activity for this company is mainly in children’s clothing, and only UK and Ireland have 0% VAT / TVA on children’s clothing (I also fall within the distance selling directive rules, so do not have to register for VAT in any other EU country so far);

I am thinking this is just getting too complex, and for what gain?

If I brought the remaining UK company activities over to France, what are my options?

If the doubling of the AE threshold becomes law, with the UK company activity added to my current AE activity, I would most likely be at the upper end of the new turnover limit (€160,000 ish), and would therefore have TVA on almost half of the sales (still not sure how this would be declared in practice?)

Would I benefit from setting up a SARL? Or is there any other more suitable French business structure?

To add further to the situation my business approach now and in the future is to look to set up more online shops, all selling unrelated products (so different brands and marketing – but all online retail).  These new retail ventures are very much that, ventures, with front loaded costs and little return initially.

My net profit percentage on current AE sales in France is about 35 - 40% (the website for this activity is being built, I sell currently through Amazon).

Regarding the UK company products, gross profit is between 10 – 30% depending on the product range (tighter margins – mainly through Amazon but also a website). Net profit is very much lower, between 10 and 20%.

So are my choices AE or SARL, or is there a better French business structure?

It comes down to a cost benefit exercise. I can add in further considerations such as transport costs, costs of admin if an Irish company is used, warehousing costs etc, so I am looking to get a clear picture of what basing all my activities in France would cost, and look like from an admin perspective – depending of course on the business entity structure

To summarise if I moved all business activities to France:

Turnover would be about €160,000, possibly more in the near future
Roughly half of that has a net profit of 35 – 40% and the remainder a net profit of 10- 20%
I will be setting up more online activities in the year that will incur a few costs with no initial return
I will store my stock in France
I will need to take a regular income from the business

What are my options?

Answered
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