New measures to boost small businesses in France

By Valérie Aston on 4 September 2017 · Viewed 6760 times · Questions

The French government will be presenting its plan for small businesses in Dijon on 5th September 2017. Prime Minister Edouard Philippe will lead a delegation of ministers, including Agnès Buzyn, the Minister of Solidarity and Health. The Prime Minister will make his principal announcements at the Chamber of Commerce and Industry of Dijon, including:

  • The dissolution of Régime Social des Independents (RSI).
  • A reduction of social contributions for the self employed to compensate for the increase in Contribution Sociale Généralisées (CSG).
  • Doubling the tunorver thresholds for auto-entrepreneurs (also called micro-entrepreneurs).

RSI to be dissolved in 2018

The first major annoucement is the suppression of RSI announced by President Emmanuel Macron during his election campaign. The case is much more complex than it seems and the government is proceeding cautiously to avoid any further industrial disaster. The implemention of a new plateform 9 years ago, lead to major disruptions for entrepreneurs (including errors in social charges calculation and apalling recovery procedures).

RSI will disappear as early as 2018 to be merged with the general scheme Sécurité Sociale (so far dedicated to employees). A new name will be given to this service, RSI having been often synonymous with administrative harassment for the self-employed. Social security coverage (health, welfare, pension) will remain the same as it is today for small businesses, but social contributions should be revised downwards as the government has promised to compensate for CSG's increa of 1.7 % of CSG.

Auto-entrepreneur turnover to double in 2018

Further good news will be announced for small businesses dealing with RSI, including a number of administrative simplifications and improvements in the services provided. Another expected announcement is the doubling of the turnover thresholds for micro-enterpreneurs. Currently, auto-entrepreneurs (also called micro-entrepreneurs) are limited to a yearly turnover of 33,100 euros for services and 82,800 euros for trading activities. The auto-entrepreneur turnover should double moving:

  • From 33,200 euros to 66,200€ per year for services.
  • From 82,800 euros to 165,000 euros for trade, gites and chambre d'hôtes.
  • businesses would become liable to TVA from 33,200€ for services and 82,800€ for trade.

I will keep you postyed once these annoucements have been made tomorrow.


Valerie Lemiere: Start Business in France

About the author: Valérie Aston

I've been helping people who want to start or already have a small business set up in France since 2009. After graduating from a Master of Business Administration (MBA) degree, I worked as a senior marketing consultant in the UK and France for various International companies. I worked as a conseillère en création d'entreprises (senior business advisor) for BGE here in France and run this independent business on a daily basis.