all the steps to follow

all the steps to follow

You want to start on your own, and you are wondering about the steps to follow for starting a business ? Beyond the administrative procedures, it is also necessary to take into account the business start-up costs before crossing the line. We explain to you…

Business creation: The choice of status as an absolute prerequisite

To exercise your activity as a self-employed person, you must choose a legal status. There are then two main types of structures: the micro-enterprise and the company. There are also other alternatives for freelancers that make it easier to create and manage your status.

The micro-enterprise

The micro-enterprise makes it possible to have an activity of sale of goods or provision of services without having to create a company. To benefit from this so-called simplified regime, you must register on the URSSAF online portal dedicated to auto-entrepreneurs. It’s free. Then, you declare each month or each quarter, depending on the option chosen, your turnover. You only pay social contributions if you have collected funds during the period concerned. However, in a micro-enterprise, you do not have the possibility of deducting your expenses from your turnover to reduce the tax calculation base.

In a micro-enterprise, there is no distinction between you and your activity. You are one and the same person in the eyes of the law. You cannot create a micro-enterprise with several people.

The society

The creation of a company, on the other hand, requires carrying out more administrative procedures. In principle, you can create a company with several people, even if certain legal forms accept a single partner. In addition, setting up a company entails business start-up costs.

The company may be systematically subject to corporation tax (IS) like the SASU and SAS, or be subject to income tax (IR) with possible option for IS as in EURL and in SARL. There is therefore not just one type of company, but several. Each having its own specificities in terms of organization, governance, or even the manager’s social regime.

In a company, you have the possibility of deducting your expenses from your turnover. The tax is calculated on your net profits. However, you must keep detailed accounts including, in particular, a balance sheet, a profit and loss account, a tax return, etc.

Moreover, when you open a company, it has its own legal personality. You and your company are two different people.

The choice between micro-enterprise and company depends mainly on whether you want to undertake alone or not, the type of project you want to set up and your expenses. However, whether you decide to create a company or open a micro-enterprise, know that you can benefit frombusiness start-up assistance.

The micro-enterprise is often chosen to test a project, especially among freelancers.

Alternatives for freelancers

Freelancers also have the option of opting for wage portage. This hybrid status allows them to exercise their activity independently without having to manage the administrative part. They also benefit from certain advantages of employment, such as having an employment contract and payslips – which is very practical for obtaining a mortgage, for example – social security coverage, unemployment benefits, etc.

They can also consider joining a business and employment cooperative (CAE).

The 4 stages of business creation

To create a business, several steps must be followed. These stages are common to the different forms of company (SASU, EURL, etc.), but differ from the stages of creation for a micro-enterprise. Indeed, for the latter, a simple online declaration to the URSSAF is enough to obtain your SIRET number.

On the other hand, for the creation of a legal structure in its own right, it is another pair of sleeves, since you will have to go through:

  1. The drafting of the statutes;
  2. The deposit of share capital;
  3. The publication of a notice in a journal of legal announcements;
  4. Application for registration.

Let’s take a look at each of these steps and the business start-up costs.

Step 1: Drafting the statutes

If you opt for the creation of a company, the administrative procedures to be carried out are the same for all types of company (EURL, SARL, SASU, SAS, etc.).

You have to start by writing the articles of association, that is to say the rules that will govern the operation of the company. The articles of association must be recorded in a written document signed by all the founding partners. They must imperatively mention:

  • The corporate name (the name of the company);
  • Its legal form;
  • The address of its registered office;
  • The contributions of each partner or shareholder;
  • The amount of share capital;
  • The corporate purpose;
  • Its lifespan.

Subsequently, other clauses may supplement these statements.

Note: to create a micro-enterprise, it is not necessary to write articles of association. Registration on the URSSAF platform is sufficient.

The drafting of the statutes is free if you do it alone. However, as it is a sometimes complex exercise, you can be accompanied by a professional. It is then necessary to count around 200 € if you use a legal platform, or 1,500 € on average if you use a lawyer or a notary.

Step 2: Deposit of share capital

The second step in setting up a business in the form of a company consists of depositing the share capital with an authorized person. Namely, a banking institution, a notary or a lawyer.

A certificate of deposit of share capital is given to you.

In terms of company formation costs, depositing share capital can be free or can cost you up to €100 depending on the custodian.

Step 3: Publication of a notice in a journal of legal notices

In order to notify third parties of your desire to create a business, you must publish a notice of incorporation in a journal of legal announcements (JAL).

The business start-up advertising costs are generally between 150 and 200 €.

Step 4: Application for registration

Finally, the last step for the creation of your company, the application for registration with the registry. It is necessary to compile a file with the following supporting documents:

Extract from a cerfa M0 to be completed for the creation of an SAS.
  • The M0 form duly completed and signed;
  • Two copies of the statutes certified true;
  • The certificate of deposit of the share capital;
  • The certificate of publication of the legal announcement;
  • A copy of the manager’s identity document;
  • A certificate of non-conviction from the manager;
  • The list of beneficial owners;
  • A certificate of domiciliation of the company;
  • The deed of appointment of the manager.

The business creation costs at the registry are €37.45 for the registration of a business with the RCS. These costs amount to €45 for registration in the register of trades (RM).

The creation of a business therefore requires many steps to be taken, which can be long and costly. Indeed, the business start-up costs should not be overlooked in your thinking. To avoid this, you can turn to micro-enterprise. However, you will still be required to carry out the administrative procedures, in particular the declaration of your turnover. To avoid this administrative burden and the costs linked to the creation of a company, freelancers can embark on wage portage or join a cooperative.