How do I determine the nature of a business?
Verified 02 October 2019 - Directorate for Legal and Administrative Information (Prime Minister)
When setting up a company, the project owner must determine precisely the nature of his activity, as it is decisive in terms of formalities, taxation, management of the company and the social status of the manager. The business of a company can be commercial, industrial, artisanal, agricultural or liberal.
Nature of the activity | Features | Reporting formalities |
---|---|---|
Crafts |
| |
Commercial |
| |
Industrial | Production or processing activity through the use of industrial tools, extraction, mining industries, handling, shopping and storage | |
Agricultural |
| |
Liberal | Regulated or unregulated liberal activities :: intellectual, technical or care services requiring professional qualifications and respect for professional ethics |
A provision of services may be of a nature:
- commercial (real estate agent, restaurateur, entertainer for example);
- handicraft (hairdresser, taxi in particular);
- or liberal (doctor, consultant, trainer for example).
For mixed activity (e.g. both commercial and liberal), the project leader must determine the principal and ancillary activity, carried out as an extension of the first.
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Main commercial activity / secondary liberal or craft activity
In principle, the CFE to be addressed is the main activity. However, this practice does not apply in cases where the declared secondary activity requires registration in a register (register of trades for craft professions or of trade for commercial activities).
For example, a merchant depends on the CCI as the CFE for his main activity. If he wishes to add a liberal activity to his company (for example, a magnetizer), his secondary activity being liberal, it is not referenced on any specific register. Thus, the CCI (CFE of the main activity) will be in charge of the secondary activity.
Liberal main activity/ commercial or craft secondary activity
In principle, the CFE to be addressed is the main activity. However, this practice does not apply in cases where the declared secondary activity requires registration in a register (register of trades for craft professions or of trade for commercial activities).
If the activity of the company is liberal and the secondary activity is commercial or artisanal, it will cause a registration to the RCS or the directory of trades.
Thus, in this case, the relevant CFE will be the ICC or the Chamber of Trades (CMA) according to the activity, even if these bodies are not CFE competent for the main activity.
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Speak with an advisor on Place des Entreprises- Trade Code: Articles L110-1 to L110-4Definition of commercial acts
- Act No. 96-603 of 5 July 1996 on the development and promotion of trade and craftsDefinition of crafts
- What are the craft activities?Permanent meeting of chambers of trades (APCM)