4. Business Classification

1. 4.1 Business Professions
2. 4.2 Regulated Activities

4.1. Business Professions

Given the French obsession with wanting to classify and regulate just about everything, it may not surprise you to learn that there is a system of classification and registration in place for all business activities.

The system of classification is somewhat archaic, and it is not clear that it serves any major purpose in a modern economy, other than to provide employment for those who administer the system!

Normally, you should be able to slot your proposed business into one of the business categories, but they can sometimes overlap.

If this occurs, there may be some discretion available to you to determine into which business profession you fall, and with which regulatory body you then need to register the business.

If you have more than one business activity, then things can get a bit complicated, depending on whether or not it is a related activity. The authorities do have a set of rules to determine on what basis your activities should be registered and to whom you should pay your social security contributions.

As a general rule, you should decide your principal business activity and register on this basis. Your other business can normally be registered as a secondary activity. You will then pay social charges on your income from both activities to your main social security Caisse.

The other alternative is to set up a limited company and undertake the multiple activities through the auspices of this legal vehicle.

If you undertake a secondary activity, your biggest consideration may well be your professional and civil liability insurance. Public liability and/or professional indemnity insurance is not obligatory for all business activities, but if you do need it, you may well find that your insurer is unwilling to grant you cover for the related trade/profession, or will only do so at extra cost.

If you are in any doubt as to into which category you fall then you should ask at your local Chambre de Commerce, or at the Chambre de Metiers for trade based activities.

The five business professions are as follows:

i. Trade (Artisan)

This group of business activities includes what is generally understood as one of building trades (builder, plumber, electrician) and a wide variety or other manual based professions, e.g. mechanic, hairdresser.

Strictly speaking, you can only call yourself an artisan if you have a requisite level of qualifications and/or experience. So a mason (a bricklayer) is not necessarily also an artisan.

ii. Professional (Profession Libérale)

There are four main categories of profession libérale, otherwise also known as 'freelance' occupations:

• Legal
• Medical/Para Medical
• 'Technical'
• Artistic/Teaching

The list includes health professionals, legal professionals, surveyors, accountants, architects and insurance agents.

It also includes independant occupations whose role is artistic, personal service or intellectual, e.g. journalist, writer, illustrator, dance instructor, musician, painter, interpreter.

A complete list of the professions libérales can be found at Chambres des Professions Libérales

iii. Commercial and Industrial

Within this category sits most other business activities of a commercial or industrial nature. Thus, running a shop, café, hotel, restaurant, factory, or otherwise engaged in an occupation that is predominantly commercial or industrial.

This list includes within it the letting of furnished accommodation, although not unfurnished accommodation, which is not considered to be a business profession! You can read more about letting of accommodation in France in our Guide to Letting Property in France.

iv. Commercial Agent (L’agent commercial)

Acting as a representative for another company in the negotiation for the sale, purchase or letting of contracts for goods or services.

v. Agriculture

Farming related occupations.

The French business start-up agency 'APCE' has a range of useful guides to business creation by type of activity, and you can find them at Guides to Business Activities

4.2. Regulated Activities

Certain business activities in France are 'regulated', with controls on access into a profession or activity.

Foremost of these activities are certain of the professions libérales (avocats, architects etc), but numerous other business activities require appropriate authorisation before you can start the business.

In most cases the authorisation required may be little more than registration with the Chambre de Commerce/Metiers. In other cases additional criteria may be needed, such as the absence of criminal convictions, the need for a licence, or the need for an appropriate qualification and/or experience.

More information on regulated business activities can be found by visiting Inforeg or APCE

The business activities include bars, restaurants and hotels, gîtes, camp sites and bed and breakfast establishments, estate agency, driving schools, journalism, travel agent, hairdressing, transport business, security services.

However, do not assume that because they are 'regulated' it is difficult to get into these professions - the entry requirements vary.

Practice does vary between the various Chambres de Metiers but, at most, provided you can demonstrate some basic level of certificated training, or at least three years experience in the relevant trade, you can set yourself up in business.

If you hold appropriate qualifications, then you will normally be be asked to get them translated and certified by a professional translator.

If you have no qualifications, you would be well advised to bring testimonials, (translated into French and certified by a professional translator), which you can provide to the Chambre at the time of your registration.

This paperwork may also be required by your insurer when you make application for your professional indemnity insurance, if it is required by your activity.