First hurdles for business setup

THE FIRST complications for France’s simplest method of setting up a business will come into force in 2010.

As of next year, those signing up to the scheme will be registered with their local chambres de métiers. However, they will not have to pay for the first three years.

All new artisans on any business regime will have to provide evidence of qualifications.

The announcements were made by Minister for Business and Tourism Hervé Novelli who said that some “adjustments” were needed to the scheme.

“At no moment is the creator of a business currently asked if they possess professional qualifications before they set up,” said Novelli.

The Union professionnelle artisanale had protested that the new status was bringing in unfair competition against those who were already set up in their trades.

Also, as auto-entrepreneurs did not need to sign up with them, the body was set to lose at least nine to 10 million euros this year.

Signing up to a chambres de métiers will again become compulsory for auto-entrepreneur artisans who set up from 2010.

Their details will be sent automatically to the relevant chambre once they sign up online – helping to conserve the ‘simple’ principle of the auto-entrepreneur scheme.

The president of the Confédération générale du patronat des petites et moyennes entreprises, Jean-François Roubaud said they planned to ask that the auto-entrepreneur status be limited to three years before business owners had to join France’s classic business structures.

The auto-entrepreneur scheme was launched at the beginning of this year. It allows people to start a business in France, setting up and declaring revenue online.

Business owners have social charges and taxes deducted on the basis of their turnover as opposed to France’s other more complicated calculations.

Connexion has a helpguide on the auto-entrepreneur. Click here to see our full list of guides.