If you have an existing business registered as an entreprise individuelle in France, you cannot switch to the auto entrepreneur system.
However you can decide to switch to the Regime Micro Social which will enable you to pay your social charges according to your actual turnover.
What are the advantages of the Regime Micro Social?
- Your social charges are paid according to your real turnover, thanks to the monthly or quarterly declarations
- The social charges rate is similar to the auto entrepreneur scheme: 12% of your turnover for trade, food and accommodation and 21.3% for services
- No lump sum to pay off in N+1 as per the regime normal. For instance if you registered in January 2008 with the standard regime, you will have paid your cotisations along the year according to a general turnover estimate. You will also have a “regularisation de cotisation” for 2008 payable in October or November 2009. This goes for your first two years in business and can be damaging for your business if you haven’t saved enough for the regularisations.
- As we are entering into recession, this will help your cash flow. Why pay cotisations based on your 2008 turnover if your actual activity is slowing down.
How does the regime micro social work
When switching over you will decide whether you wish to pay your social charges on a monthly or quarterly basis. You will then declare every month/quarter your actual turnover and settle the right amount (12% for trade and 21.3% for services). This process should be available online.
Where to apply for the regime micro social
If you have an existing business in the trade or craft sectors, you can apply online on the auto entrepreneur website under the Optez pour le reglement simplifie des charges sociales et fiscales section. Alternatively you can write to the the Regime Social des Independants with a recorded letter (avec accuse de reception from La Poste).
Apparently the online form doesn’t take profession liberales (services), so you will have to contact the RSI to switch over. Call to check the procedure to follow, then send you recorded letter.
Deadline to apply for the regime micro social?
Normally you should apply before the 31st December. As the system is fairly recent the deadline has been exceptionally extended to the 31st march 2009. This also means that there will be a time of adaptation and likely errors. At least you will know the exact amount of social charges you have to save in the meantime.