The Civilian business of Means (CMS) is reserved for the liberal professions, regulated or unregulated.

The objectives of the SCM are as follows:

• Jointly manage the material means to exercise the profession (e.g. electricity costs, office supplies, rents, etc.)
• Reduce costs by sharing expenses

There is neither profit sharing nor a common clientele, but only contribution to common costs.

Creating an SCM is no impact on the legal situation of its members. They remain self-employed and retain complete independence in their professional activity.

Who can be associated with an SCM?

Members of a SCM are required to be members of a liberal profession.

These may be natural persons individually practicing and/or of legal persons : business of liberal practice (SEL), professional civil business (PCS), etc.

They must be minimum 2.

Partners share expenses and operating costs. They are responsible jointly (i.e. their share in the company's capital) and indefinitely (i.e. on their personal assets) of the debts of the company.

What is the amount of share capital?

There is no minimum social capital required.

How do I register SCM?

The SCM must be registered in the Commercial and business Register (RCS) and in the National Register of Companies (RNE).

Registration must be carried out on the website of the company formalities office.

Company Formalities Window

Once registered, the SCM has the opportunity to enter into contracts, hire staff or make real estate investments.

SCM cannot sign a business lease, because the tenant must carry out a professional activity. It is therefore the partners who sign the professional lease on their behalf.

Taxation of businesses of persons

SCMs shall be subject to the taxation of businesses of persons.

This means that outcomes are determined by business, but it is the partners who are taxed on the results achieved. The profit is therefore taxed either on income tax (IR) or on business tax (IS) according to the tax to which the partner is subject.

SCMs may not opt for business tax (IS) when they provide their members with the necessary means to carry out the activity. On the other hand, when they make these resources available to non-associated third parties, for remuneration, they carry out a commercial activity: in this case, they may opt for IS.

Determination of taxable profit

The business must first to determine taxable profit or loss.

The regime that applies depends on the situation of the members of the SCM:

• Where the members of the SCM are taxable in the non-commercial profit (NTB) category, the controlled declaration procedure non-commercial profits (NBC) or micro-BNC speed where the amount of revenue excluding tax for 2022 is less than €77,700. For 2023, the annual threshold has been raised to €77,700. This scheme applies to most members of SCMs operating on an individual basis.
• Where the members of the SCM are liable to tax on businesses (IS) or to industrial and commercial profits (BIC), it is the simplified procedure taxation of BICs which applies. This is the case when the partner is a Liberal Practice business (SEL) or a Professional Civil business (PCS). The business may, however, opt for the normal real speed of the BICs.

The SCM must file a declaration of results no later than 2^e working day following 1^er May.

An additional period of 15 calendar days is granted by the tax authorities where the declaration is made electronically in EDI-TDF mode. Where the declaration is not submitted electronically, an increase of 0.2%of the amount of duties payable shall be applied.

In most cases, the SCM is in one of the following situations:

• It is composed exclusively of members whose income is taxable in the category of non-commercial profits (NTBs).
• Some of its members either have taxable income in the category of industrial and commercial profits (BIC) or fall within the scope of the SI, and it has not renounced the simplified tax regime (SIR).

Where the SCM has opted for the normal real scheme of the BICs, it shall use a specific form.

It's the associates which are taxed on the outcome of the SCM for the share of profits corresponding to their rights in the business. They shall be subject either to business tax (IS)), or income tax (IR).

Such income may be taxable in the category of BICHowever, in most cases, the activity of the partner is taxable in the NCB category: it then falls under either the controlled declaration procedure either from micro-BNC speed.

The SCM shall provide its members with adapted premises, equipment or staff necessary for the exercise of the activity. This activity is taxable at the VAT at the normal rate of 20%.

However, these supplies may be exempt of VAT where 3 following conditions the following shall be combined:

• Services (such as management, maintenance of premises or IT work) are provided exclusively to the partners of the SCM.
• The services provided by the SCM to its partners must contribute directly and exclusively to the implementation of exempt transactions (for example, members of the medical and paramedical professions)
• The amounts claimed from the members shall not exceed the common operating expenses

In order to benefit from this exemption, certain information must be provided on special print n° 2036-SD acting as a result declaration.

These include the identification of the partners, the participation of each partner in the capital, and the amount of expenses allocated to the partners.

Civil businesses of Means Tax Return (SCM)

The territorial economic contribution (CET) is made up of the company property levy (CFE) and the company value added levy (CVAE).

CFE

The SCM is considered to be engaged in a gainful activity as a service provider. It is accordingly imposed on the companies' property levy (CFE) in its own name, regardless of the income tax regime.

The CFE is based on the rental value of the SCM premises for use non-private, i.e. serving all members, and for which it has been responsible for control, management and maintenance. These include the secretariat room, entrance, waiting room, technical rooms, meeting rooms or documentation rooms.

Every associate of the SCM is also taxable to the CFE in his own name on the rental value of the premises of which it has the exclusive use.

CVAE

When the revenues of the SCM exceed €152,500, it shall be subject to the value added contribution of the companies (CVAE).

The members of the SCMs are also taxable to the CVAE in their own name.