2. Top Tips for Starting a Business in France

• Before you relocate, establish whether or not the trade or profession you propose to enter is regulated and, if so, the terms of entry.
• Try and assess the market prospects for your business and develop a commercial strategy – there is a surfeit of gîtes, estate agencies, cafes, bars and restaurants in most parts of France – all favourite targets for many relocating to the country.
• You may be better off having more than one string to your bow, by running a couple of small (possibly related) business operations, rather than focus on any single business project.
• Renting property in France (particularly furnished property) offers attractive fiscal advantages, although you need to carefully choose your market.
• Register as unemployed with the French jobs agency ‘ANPE’ whilst you plan your business, and gain an exemption from most social security contributions for up to two years.
• Find a good commercially orientated French accountant and be prepared to pay a few hundred euros to get their advice on tax, financial assistance, the law and market related questions.
• Consider the use of a Centre de Gestion Agréés (CGA) for your continuing accountancy requirements, as tax concessions are available.
• Find out the likely level of your business insurance costs. Premium levels for public liability and professional indemnity insurance are high, running into several thousand of euros a year for many professions.
• If you commence trading before you have registered your business you can be subject to heavy fines, and you will carry no insurance cover, so get the paperwork sorted with the authorities before you start the business.
• Do not jump to adopt micro-entreprise tax status just because it has simplified taxation procedures. The actual costs of most new businesses are greater than the automatic allowances available under this tax regime.
• If you do not opt for 'micro' tax status, (instead opting to be charged on the basis of actual costs and revenues) use cheap loan finance from the banks to reduce the level of your social security contributions and liability to income tax.
• If you set up a limited company through which to run the business, then you should consider the use of dividends in partial remuneration, as a way of reducing your liability to government social charges.
• If you declare that your spouse assists in the business (e.g. accounts, administration) then they must be granted proper legal status in the business, and they are required to pay social security contributions.
• The banks are obliged by the government to offer start-up loans to new companies, so do the rounds of a few banks to see what they are prepared to offer, before you give one of them your business account. You should also investigate loans and other assistance from the business development agencies.
• Visit the web site of your Conseil Régional and enquire within about grant assistance, business advice, or soft loans. Make a visit to their offices and discuss your project and your needs.
• Consider locating the business within an urban or rural development area (check out with the Conseil Régional) where there are excellent tax breaks and relief from social security contributions.
• If you wish to employ someone, endeavour to make use of tax and social security concessions available for recruiting those from the unemployment register.
• If you are making little or no money in your business, remember that you may also be entitled to social security benefits, as well as having to pay into the system!