Auto-entrepreneur versus SARL

The French Government recently introduced a new type of business, Auto Entrepreneur.  The intention was good - allow people already in full time employment, retired people, people on unemployment benefit, to start up small business to supplement their income.  The aim was to capture those who provided services 'on the black' (occasional gardening, cleaning etc...) and bring them into the tax paying community, allow those thinking of creating a business to 'dip their toes' into the market to see if a business scheme was viable. The statut was to be allowed for up to 1 year before changing to a fully registered company, individual or otherwise. No financial outlay was necessary as contributions were to be paid using a three part invoice pad with a pre-printed siret number, 1 part for the client, 1 part for the service provider and 1 part to be sent to the tax collecting body with payment. No qualifications were necessary, no insurances demanded.

However, the scheme has exploded uncontrolably.  Many are profiting from the substantially reduced outlay normally required to start a company. The Auto-entrepreneur can now exist for up to 3 years. The 3 part invoice pad has not materialised, income is self declared for tax purposes. Without the need for qualification in the service proposed, nor insurance for the work provided, customers previously advised to ensure a company had a Siret number, can no longer take this as a controled element in the service provided.

CAPEB are vigorously opposed to how this scheme has evolved and continue to fight for regulation in the building trades. Artisans with proven qualifications are being pushed aside by Auto Entrepreneurs providing a better quotation price (as less that half the rate of contributions paid) - but at what cost to the client?

When you choose a registered Artisan, building company or any other service - ask how they are registered.  It is your right to see a current insurance certificate and to confirm that certificate with the insurance provider.

Fully registered companies SARLs, EURLs and individual Artisans can provide you with copies confirming their insurances, payments and social charges are up to date.  If in doubt, ASK.

Protect yourself - ask before signing quotations!  You invest your money in your home - invest it wisely!  Don't wait to find out after work is completed that it is completely uninsured and the individual providing the service is not qualified and / or no longer in business!