Very small companies

See also: TPE

The very small companies (TPE) are in France a name of the companies of less than 20 paid. In fact, there does not exist any official definition, if it is not that provided by DCASPL (Direction of the trade, the craft industry, the services and the liberal professions, attached to the ministry for French SME). The European commission took a recommendation (May 6th, 2003 - 2003/361/CE) for in particular defining micro the companies (undertaken which occupy less than 10 people and of which the annual Turnover or the total of the assessment does not exceed 2 million euros) and the small companies (undertaken which occupy less than 50 people and the annual turnover or the total of the assessment does not exceed 10 million euros. According to the work of the DCASPL (key figures of the TPE - Edition 2005), at January 1st, 2004, there existed in France 2.390.000 TPE concerning field ICS (Industry Trades Service), that is to say 96,6% of the total of the French companies (identical proportion in Europe). The TPE exert all types of activity of industry to the trade while passing by the services (building, hotel trade restoration, councils with the companies, medical departments, social services…).

61% of the French TPE do not have any employee, 23% have some between 1 and 3. The whole of these TPE employed 5.798.700 people (including 4.017.900 paid) in 2002. These TPE carried out the same year 8,6% of French exports.

Definition of a microphone-company

The microphone-company term is often used ill-advisedly to indicate the TPE, it is however more restrictive. The microphone-companies are almost exclusively individual businesses, they are very present in the emergent Pays, where economic development rest quasi-majoritairement on them. In France, the statute of microphone-company is a tax mode specific, reserved to companies doing little turnover , it gives in particular right to tax cuts. It is juridically reserved to the employers and to free lances (ETI) (trading, craftsman, liberal profession). This statute is subjected to the mode of the VAT (thus neither collection of the VAT for recoverable state nor VAT) but on the other hand is not compatible with certain helps with the companies. For the remainder these companies are subjected to the regulations of the ETI.

The mode of the microphone-company

It is fixed by article 35 of the law of August 1st, 2003 for the economic initiative. These provisions allow on request, with the free lances imposed either according to the mode of the microphone-company determined by article 50-0 of the General Tax Code (cgi), or according to the special declaratory mode of article 102 B of the same cgi, to derogate from the usual methods of payment of the contributions and social contributions (provision, regularization, contractual plates of beginning of activity), such that they result from the other provisions that comprise the articles L 131-6 and L 136-3 of CS.

- article 102 B cgi fixes the special declaratory mode for the noncommercial benefit (BNC), this mode is called " mode micro BNC". benefit of this mode is reserved to the taxpayers perceiving of the non-trading incomes not exceeding, during one calendar year, 27000 € net of tax. In this case, the gross value of the annual receipts is decreased by a contractual allowance of 34% since 2006 (37% before).

- article 50-0 cgi fixes the mode of the microphone-company for the artisanal companies, commercial or industrial, i.e. for the industrial and commercial benefit (BIRO), this mode is called " mode micro BIC". This mode is reserved for the companies whose annual turnover does not exceed:

76300 € net of tax if they are companies whose principal trade is to sell goods, objects, supplies and food products to be carried or to consume on the spot or to provide housing. In this case, the turnover net of tax is decreased by a standard abatement of 71% since 2006 (72% before).
27000 € net of tax in the other cases of BIRO. In this second case, the turnover is decreased by a standard abatement of 50% since 2006 (52% before).

In all the cases, the minimum amount of the abatement applied will be of 305 €.

In short

The microphone-companies carry on either an marketing activity, or a noncommercial activity. The tax statute of micro company corresponds to a maximum threshold of annual benefit (27000 € net of tax and for the companies carrying out of the operations of purchase-sale 76300 € net of tax). It is the center of the taxes which validates this statute.

For a noncommercial activity returning under this tax framework, the taxes are paid on the basis of 66% of the annual sales (independently of the amount of the actual profits).

For an marketing activity returning under this tax framework, the taxes are paid on the basis

29% of the annual sales (independently of the amount of the actual profits) for the companies realizing of the operations of purchase-sale,
50% of the turnover for the other activities.

See too

Undertaken
SME

Sources

Circular DSS/SDFSS/5B/n°04/205 of May 4th, 2004 relating to the application of the article

35 of the law n°2003-721 of August 1st, 2003 for the economic initiative , the director of the social security, Dominique LIBAULT

Bibliographical references

figure-keys of the TPE , Direction of the trade, the craft industry, the services and the liberal professions, Paris, February 2005

the new definition of SME , European commission, Companies and industry Publications, 2006,
To create or take again a trade , Jean-Pierre Thiollet, with a foreword of Sophie de Menthon, collection Lira To act, Vuibert Editions, Paris, 2007 (2nd ED.) ISBN 2 7117 9173 4

All must disappear - or the alarm clock from independent, André Vonner (discussions with Jean-Pierre Thiollet), Editions Jean-Cyrille Godefroy, Paris, 1986

External bonds

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