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Freelancing in France: What You Need to Know
By Anne Cosse
January 2007
You've just decided to start a new life in the mythic country of Lights & Romantism, Cheese & Wine, Elegance & Art de Vivre, and you have a great freelance business idea.  Or you already live here, but you can’t find a job, so your next move is to become self-employed, and you have an idea of what you want to do..

Whether or not you already work as a freelance in your own country, being one in France is a whole new adventure.  The culture, the language, the tax and social schemes, the red tape, everything is different.  And you do not want to underestimate the importance of understanding and adjusting to those differences!

Having The Right To Work In France
First thing's first, you should obtain the right to work in France..  Anyone who plans to stay in France for more than 3 months is required to have a visa. It is called a “carte de séjour”. To get this long term stay visa, you have to apply for it before you come to France. Your nearest French Consulate will give you all the details for this bureaucratic but necessary process. You may also want to consult a lawyer. Many foreigners live in France without a visa, but if you want to set up a business, there is no way around it. 

Learning The Language
French people are well known around the world for not speaking good English, if at all.  For many reasons, this has improved over the years.  Every year, France welcomes more tourists than the number of its own population, and consequently the country has had to deal with language issue.  The youngsters, particularly through their studies, are travelling and staying abroad more, which makes speaking English a must.

But if the lack of language skills is not as bad as it used to be, the main part of France remains French and only French speaking.  In particular, the French Administration, as any administration I guess, speaks only French.  As a freelance, you will have to interact with many people to develop your business, make contacts, and moreover to cope with the red tape.

My advice : learn French !  At least know the basics.  In Paris, there are many places to learn and practice. Schools, of course, to learn the basis of grammar, but also French-English conversations clubs, who organize sessions, events and evenings in nice and various places in the city.  It’s a great way to improve your language skills, meet French and foreign people, and discover cafés you can come back to.  EscapeArtist.com is the website to consult for finding out all about it.
 

Understanding The French Administration Culture
If you are American, you come from a culture where entrepreneurship is the norm.  Pioneering is the basis of the USA psyche, living the American Dream is ingrained in the culture;  business avant-garde skills and concepts nearly all come from this country.  So you may think that entrepreneurship is natural for all cultures around the world.  It is not.

France has a very long history, and its culture comes from that.  During those centuries, there were kings, religion power, land lords, nobles, aristocracy - in other words : hierarchy and state centralization.  Of course, it’s that history that created all the castles, landscapes, gastronomy, art de vivre, philosophy, artists, which many foreigners come to love in France.  But the other side of it is a specific spirit when it comes to economics, business and money.

Firstly, the freelance status is not crystal clear in France.  It is called “travailleur indépendant” and “entrepreneur individuel” by the Administration, but “profession libérale” in the civil sphere.  Also, although the travailleur indépendant is considered as a person, tax wise, and not as an entity, it is for other purposes considered as a company.  So public information, brochures, forms are all designed for companies, including freelance individuals, so that it makes the paperwork rather complicated for such a simple status, and not always appropriate.

Secondly, the French Administration loves red tape.  During the 20th century, the economy developed exponentially, with a huge need of salaried human resources.  Since WW2, everything has been organized for and around the salaried workers, and the employer/employee relationship.  Self-employed persons were basically storekeepers and artisans.  Freelancers were a tiny minority, and their status has remained fluid . The tremendous increase over the years of freelance workers, especially since the 1990’s, when the unemployment wave started to hit France, led the bureaucrats to add new layers to the Administrative lasagna, but not to simplify it.  Hence, the life of a travailleur indépendant can be hell if he/she does not get the right information prior to and during  the course of their activity.

RESOURCE LINKS FOR FRANCE
Moving to France
Articles, resources, links, and very unique innovations.
Articles about Living & Moving to France
Articles about living, moving and working in France.
France Country Information
Weather, government, maps.
Books about France
Books on jobs in France, living in France, and what it takes to move to France.
France: Economy & Business
Banks, Real Estate, Investing, Properties in France.
Real Estate In France
Real Estate In France - Current real estate listings of properties in France.
France - Real Estate
A list of links to French real estate.
Vacation Rentals In France
Vacation Rentals worldwide - including France
Vacation & Travel In France
EscapeArtist Travel - Our new section providing unique travel to unique locations
Embassies and Consulates for France
Embassy Resources for France - On our sister site EmbassyWorld.
Links, links and more links
Links, Search Engines Art & Culture resources for France.
Maps of France
Maps of France - Our own Embassy maps plus a large number of differing France maps, also including city maps.
Hospitals in France
Hospitals Around The World by Region - Europe.
Jobs in France
Links for finding Jobs in France.
Newspapers & Media for France
World Media from France.
Banks in France
See Banks of France at our Banks of Europe Section.
France: Travel & Tourism
Information about Travel and Tourism in France.  Travel Guides, Vacations, Car Rentals, Tours and much more!
Previous articles on France:
Feasting on the Fetes of Gascony
Gascony, bathed in sun for the better of part of nine months of the year and a climate akin to that of the Napa Valley in California, lends itself to the enjoyment of almost all year round al-fresco dining and the consumption of stunning local wines. Located in the south west corner of France the area is commonly referred to as the 'other south of France!'
Languedoc: 10 Steps Buying Guide
You know those month-by-month guides that are sometimes advertised on TV – they usually have a title like “Creative crochet for your home” and you get a handy ring binder to keep them in? This part of the site gives you a step-by-step, monthly planner to help you buy a home in France (afraid there’s no ring binder, though). Think of it like planning your wedding, or the birth of your first baby: it’s all about counting down to The Big Day. Preparation is key.
Return to Normandy
Through the station concourse at Rouen, a majestic arc of light and sound, into the Café Metropole to find Christophe and Lorette sparkling with delight. Some things have changed. The cathedral has finally shed its' scaffolding, the square now too tiny to contain its' unblemished splendour.
International Real Estate
International Real Estate Marketplace- Current Listings
Making Choices Before Registering
One of the key actions to success is to get the information, and understand it, before setting up the business.  Some important decisions have to be made before even registering, because you will have to make certain choices at the moment of registration, which will have significant consequences on the amount of taxes and contribution you will pay, and the level of red tape you will have to handle all year long.For instance, in some tax schemes, you are not required to keep records other than a daily journal of income.  Can you imagine? No accounting, no complicated tax return, no accountant fee… But you have to know the existence of this scheme before you register, and explicitly state you want this one.  You need to know what criteria apply, to be eligible, and you thus need to make the appropriate decisions, some of which may change your original business plan.

Another example is the code you choose for describing your business.  There is a nomenclature in France (APE), which lists all possible activities.  When a company is registered, the appropriate code has to be attached to it.  When you register, you will give that code.  Depending on that code, you will be linked to a Social Scheme.  In France, the numerous existing social schemes do not offer the same rights, and do not cost the same.  So your contributions may vary.  Also, you may or may not be eligible for the added value tax system.  Finally, insurance premiums could vary an some health insurance companies may not cover you.

Last but not least: many State aids are available, mainly for the first year of existence, but sometimes further. To be granted one, your application file has to be given to the right Agency before registration.

So to summarize: get all the information you can get beforehand !

Registering Your Business
The only step that is really quite simple is the registration (provided that you have alreadychosen your coding). 
You go to your local Centre de Formalités des Entreprises (CFE), which is usually the URSAFF, and you fill a big A3-size form, in which you state :
o Your details
o Name and address of your company (it can be domiciled at your home, but again, there are some criteria to meet, and consequences to be aware of)
o Main office
o APE code 
o Your choice of tax scheme
o Your choice of Social Security centre

Then your job is done, the Centre de Formalités des Entreprises will inform all the appropriate Agencies of your existence : social security, retirement, income tax services, statistics national bureau. They will all contact you, don’t worry, and start asking for contribution after 3 months (not before).

Managing The Redtape
During the fiscal year (which in France is January to December), you will be asked every quarter for social contributions.  My advice is to know beforehand about the calculations, so that you can check any amount you are requested to pay. 

If you are in the added value tax system (by choice or not), you are required to state every month, or every year (depending on your choice of tax scheme), the amount of AVT due to the State.

About 4 months after the end of the fiscal year, it is tax return time.  If your scheme requires that you keep details accounting records, you will be asked to fill different forms, with different accounting reports enclosed.  In any case, your income as a freelance is considered by the IRS as personal income, and not income.  The related tax is calculated with the same scale as for salaried workers.  The possible fiscal abatements are specific to the travailleur indépendant, though.

If you are a trainer, there is an extra report to provide, stating the number of hours and participants you trained, and other analytic details.

Conclusion
If there is one message only to remember, that would be this one: do your research and homework before starting !
Once you know where you go, the journey is almost stress free,  and you can focus on what you like : your savoir faire……..
 

Anne Cossé is an MBA graduate, and has been self-employed for the past 7 years. She is the author of “Lancez et Gérez Votre Activité En Profession Libérale”.  All details on www.professionliberale.com
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Paris Restaurant Guide
Parisians do it and you can do it, too -- have a great three course meal with wine and coffee in Paris for between $10 and $35 including tax and tip! Adrian Leeds has been scouting good-value restaurants in Paris for more than nine years. The Leeds Good Value Guide to Paris Restaurants is her on-going effort to bring you secrets to great dining in all the districts of Paris. There are more than 200 good-value restaurants in the guide -- and she samples each and every one and only recommends the best. Get Adrian Leeds World Famous Paris Restaurant Guide -
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