Last week Sylvia Pinel, the Minister for Commerce and Artisans, announced in the Press that the Government would be proposing changes to the AE regime in the next Parliamentary session.
Bowing to pressure from the Artisan lobby, she has stated that the AE regime requires modification. It is likely that the regime will be divided into two types:
- those who use it as a primary business vehicle and
- those who use it for a secondary income source.
Most of the changes will be directed at the former. There is likely to be a time limit for primary AEs; the Minister hinted at anything from 1 to 5 years and there will be a restricted turnover limit of anything from 15.000€ to 7.500€ - we must wait and see exactly what is proposed!
If an AE exceeds the time limit or the turnover limit, they will have to move to one of the other formal regimes or a SARL.
For those who have a secondary activity as an AE, there will probably be little change. So pensioners, students and the unemployed will be able to continue as an AE indefinitely, assuming their turnover is beneath the proposed cut-off figure.
Politically, questions are being asked whether it is right to choke off these “early shoots” at a time when the Eurozone is in recession and unemployment figures show a rise of 1,2% in France. The debate will only hot up as the Fédération des AutoEntrepreneurs wade in with their views on the proposals.
Watch this space!