Last June the French parliament adopted a new bill for small businesses in France which will reform the auto-entrepreneur system from 1 January 2015. Here's a summary of the main changes to come for auto-entrepreneurs.
- Contribution Fonciere des Entreprises tax (CFE) to be paid by all auto-entrepreneurs, except for their first year in business. The CFE amount will be determined by the community of communes. This may vary from 180 euros to 800 euros based on where your business in located.
- Compulsory registration for trading activities, activites commerciales, with Registre du Commerce et des Societes (RCS), and artisans with Registre des Metiers (RM). This may represent a cost of 90 euros for trade and 180 euros for artisans. Auto-entrepreneurs already in business in France will have one year to comply.
- Trading activities and artisans will have to pay a tax called frais to chambre for joining Chambre de Commerce et d’Industrie or Chamber de Metiers. This tax will represent a fixed percentage of the auto-entrepreneurs turnover - 0.015% for trade and 0.48% for artisans. It will be declared and paid with the turnover declaration.
- Artisans will have to attend a five-day mandatory training course with the Chambre de Metier. Stage Prealable à l’Installation (SPI) costs about 180 euros and is already compulsory for other business types. This course is not compulsory for auto-entrepreneurs starting a business in France before 1st January 2015.
- Optional support for auto entrepreneurs reaching 50% of the turnover ceiling. The objective is to provide information for auto-entrepreneurs who may want to move to a different business structure. This may result in free business advice on legal, accountancy, sales etc.
- Requirement for some artisans within the building trade to mention their 10-year warranty insurance assurance decennale on their invoice and estimate.
- Creation a new single status for entreprise individuelle, i.e. merging the auto-entrepreneur and micro-entreprise. This new business type would keep the auto entrepreneur principle of pay as you earn.
- The annual turnover limit for auto-entrepreneurs will remain the same, i.e. 82,200 euros for trade and 32,900 euros for artisans and professional liberales.
Most implementation decrees have not been passed. I'll keep you updated on the compulsory changes as and when they are published.