A simple way to start a business in France: the new «Self-contractor» status

The law for modernization of economy has been implemented by Parliament on 23rd July 2008. Chapter 1 sets a statuts for the independant contractor, called «self-contractor».

Who can benefit from this new measure?

This status is meant to people who do not necessarily want to set a trade company up in order to perform their business and who would like to start or end their business easily. This includes employees or retired persons.

What is the procedure to start or stop one’s business?

A simple written notice and the submission of a form to the «Centre de Formalités des Entreprises» (Business Formalities Center) or a notice and submission through their website will suffice to start, freeze or cease a business.

No requirement to register small businesses performed on top of an employment or a retirement.

A simplified scheme for the payment of tax and social security contributions

Monthly or quarterly payment in full discharge of tax and social security contributions. These liabilities would amount to a percentage of the turnover. No turnover: no tax or social security liability. And no advance payment of tax and social security contributions.

Fixed rate, according to the nature of business:

13% of the turnover (up to 80 000 €) for trade

23% of the turnover (up to 32 000 €) for services

Protection of personal real-estate and land assets

On top of his main home, the independent worker will be able to make non-seizable all his real-estate property, built or non-built, through a mere notification to a Clerk. This is applicable as long as these assets are not allocated to a professional use.

Use of your home as your professional premises

The requirement to obtain a permit to use a home located on the ground floor as professional premises will be cancelled, including for trade businesses.