Setting up a business in France
Discussion
Unfortunately it is a bureaucratic nightmare. I set up a company in the UK with two phone calls, two emails and a fax in less than a week. In France it took me several months and frequently I regret having done so because the quantity of paperwork and the taxation levels are painful.
Best of luck.
Best of luck.
nel said:
Unfortunately it is a bureaucratic nightmare. I set up a company in the UK with two phone calls, two emails and a fax in less than a week. In France it took me several months and frequently I regret having done so because the quantity of paperwork and the taxation levels are painful.
Best of luck.
Still have my company in the UK but don't think it's the best way of trading over here and also want to get carte vitale etc. for myself and the wife sorted. Best of luck.
I know the social charges over here are expensive, but I thought the income tax side was lighter than the UK.... But then as previously stated I'm only starting to find out what's involved!!
If you don't mind me asking, what form of company did you set up? EURL, SARL, SAS, Micro-enterprise etc. and what was the driving factor for the choice? I know you are limited on turnover with a micro-enterprise, that you're very limited on what expenses you can claim back and there's no way of reclaiming or charging VAT. With other forms of incorporation I understand there are up front capital costs - anywhere form 7.5 to 37.5K euro - half of which are payable on incorporation and the other half spread over the first five years.
Haven't got much further but hoping to see an accountant in a week or so to get a better idea as to the best path to take.... Wish me luck!
I set up an EURL because I have no intention of employing anyone, it is just a vehicle for me to run consulting through.
One wrinkle that you might like to discuss with your accountant - when I first set the company up I registered it at my home address, which allows some of the home services bills to be run through as expenses. However, depending where you live the professional taxes can be quite painful (though you have a 2(?) year holiday when starting a new company), a postcode lottery if you like. I am now using an umbrella address in Paris where the professional taxes are very low. An added advantage of this is that the professional secretariat company in Paris forward on all mail, including "recommendees" or registered post, so you don't have to trog down to the post office to get them. And believe me, there are so many organisations that want their pound of flesh that it is inevitable that you will get registered post!
As you say, the income tax side isn't that painful, though of course that depends on the income declared and the number of dependants. However the social security does smart quite a bit!
Accountants are expensive too compared to the UK for doing the end of year declaration.
Again, best of luck! I also needed a legal status within the french system as I have kids at school and so on. However, I have an ex-UK friend who doesn't have the same obligations who has basically spent many years now in France off all tax collectors' radars. He seems to spend it all on toys...
One wrinkle that you might like to discuss with your accountant - when I first set the company up I registered it at my home address, which allows some of the home services bills to be run through as expenses. However, depending where you live the professional taxes can be quite painful (though you have a 2(?) year holiday when starting a new company), a postcode lottery if you like. I am now using an umbrella address in Paris where the professional taxes are very low. An added advantage of this is that the professional secretariat company in Paris forward on all mail, including "recommendees" or registered post, so you don't have to trog down to the post office to get them. And believe me, there are so many organisations that want their pound of flesh that it is inevitable that you will get registered post!
As you say, the income tax side isn't that painful, though of course that depends on the income declared and the number of dependants. However the social security does smart quite a bit!
Accountants are expensive too compared to the UK for doing the end of year declaration.
Again, best of luck! I also needed a legal status within the french system as I have kids at school and so on. However, I have an ex-UK friend who doesn't have the same obligations who has basically spent many years now in France off all tax collectors' radars. He seems to spend it all on toys...
nel said:
I am now using an umbrella address in Paris where the professional taxes are very low.
Thought about using an umbrella company, but this time round I'll be supplying/installing goods instead of just providing consultancy services so don't think that model would work for me.nel said:
...forward on all mail, including "recommendees" or registered professional taxes are very low.
Thought about using an umbrella company, but this time round I'll be supplying/installing goods instead of just providing consultancy services so don't think that model would work for me.nel said:
...forward on all mail, including "recommendees" or registered post, so you don't have to trog down to the post office to get them....
Our postie brings em to us! Another benefit of living out in the stick perhaps??nel said:
post, so you don't have to trog down to the post office to get them....
Our postie brings em to us! Another benefit of living out in the stick perhaps??nel said:
As you say, the income tax side isn't that painful, though of course that depends on the income declared and the number of dependants. However the social security does smart quite a bit!
It's just me and Mrs HGL (and the horses, sheep, dogs, cats, ducks & chickens!)Accountants are expensive too compared to the UK for doing the end of year declaration.
nel said:
However, I have an ex-UK friend who doesn't have the same obligations who has basically spent many years now in France off all tax collectors' radars. He seems to spend it all on toys...
He's either very brave or very lucky. I don't know what it's like where you are, but we've found that there are far too many people (mostly expats) with nothing better to do than gossip & speculate on how one earns ones keep! I had a French friend call me to tel me he'd overhead someone - in one of the local bars frequented by the English - wondering out loud as to how I managed to keep going as I've been unable to work since last March.... Could be just round here, but I wouldn't take the chance of working under the radar lest one of those muppets get in trouble with the authorities!!Thanks for the advice, has confirmed some things I knew and worried me on the one I didn't - differing levels of taxation by department!
You might want to make time and come to this - http://www.successindordogne.com/accueil.php?lang=... should give you all the info you need, straight from the horses mouth, and in English as well. I'm going to be heading up there as I'm in the middle of starting up over here too.
Gassing Station | France | Top of Page | What's New | My Stuff