Well, you might have thought that I have drowned in champagne as I was so quiet. In fact, I think I need some champagne after what I have achieved. I have read my first French book from start to finish (that excludes a few Tintin (Kuifie) and Asterix...). And the reason to celebrate is even more, as it was not any book, but a business book, and not any business book, but one with the title Guide fiscal et social du créateur d'entreprise. I'm sure even those of you who do not understand French understand enough of this title that you will agree with me that it is not an easy topic! And to acquire French is one thing, but to acquire French acronyms is another...
JL and I have decided, with some projects seriously on the horizon, that the time has arrived to create our own enterprise (in France you are not allowed to operate in your personal capacity, not even for a very small sideline job). Since I have investigated this option for some time (although some time have passed since then), we had an idea of which type of business format to choose. In SA it is so easy, you have far less choices (and a government that really have changed laws during the past decade to assist SMMEs) and the rules are not dramatically different between the various formats (in my opinion, after I have studied the French options). In France you have numerous options and it is critical that you choose correctly, as once you have made your choice, it is very difficult to change (and costly) - and one option can result in a big loss and the other one in a small amount of money in your pocket, if you are fortunate, it varies for each format!
With the statut, the proof that I've submitted the ad to be placed in a local newspaper of who will be the manager of the company, the proof that I have registered the statut with the revenue services (which already took up considerable time earlier that morning) and a cheque I've pitched up at the address we were given for the Tribunal ... to be send to the Tribunal de Commerce that was quite a walk from there ... to be told I must go to the Chamber of Commerce (also quite a walk from there - and getting in the car is pretty useless as you have some pedestrian areas, one ways, lack of parking). By then it was already 12h00 - lunch time and everything closes for 2 hours. So I had lunch on Place d'Erlon, fortunately it was a lovely sunshine day. Not sure how far the walk is, I started a bit too early and arrived at the office at 13h15. I was relieved when I saw somebody sitting behind the reception desk and I could enter. She told me somebody will assist me at 13h30 when they start again after lunch (30 min earlier than what I was hoping for, so I was happy).
To my horror I was told that I won't be allowed to work in the enterprise as we have selected JL as the manager, thinking as he is French it might be easier. So we'll have to amend the newspaper ad. And the worst...to hear that I have to complete numerous other forms and that the social charges we'll have to pay is 46% of turnover. And that is before income tax and personal tax.
I left the Chamber in a state of shock. How on earth can they expect one to pay so much tax?! The worst yet to come - there are numerous different social charges, of which some are fixed at a minimum. After doing a few calcs I told JL we need to go back to the drawing board, otherwise we'll end up in a situation where we'll have to pay the French Government for the 'privilege' of having an enterprise. I've returned to the receiver to ask for the statut and that they cancel the registration, as we don't know what we'll do and it might take time. That was two weeks ago...
After e-mails with a friend having holiday in Spain, two meetings with a CA, one meeting with an advisor on retirement, hours of researching and reading articles on the internet, searching for a good book (another mission...) and reading it, scrutinising JL's payslips to figure out the numerous taxes and comparing it with the other info I had ... I can answer one question that so many people have been asking me: How much tax does one pay in France? My response used to be that I cannot say as the system is so different from that in SA. But now I can tell you the shocking news (and maybe those of you living in SA will go and drown yourself in champagne, considering yourself extremely fortunate to live there) - what you put in your pocket after paying all the taxes and retirement and medical etc etc....is only 28% of your cost to company. It makes so much more sense now - high salary costs, but ordinary people around us, in fact, many battling financially. And I just realise more and more what a misperception so many people have about the 'rich' Europeans, having no idea how much tax they are paying, just hearing of high salaries.
I had to dust my excel modelling skills and built a model comparing four options that we are considering, trying to see which one will result in the max money in our pocket. That we can at least have a small benefit of the risks that we have to take and our hard work. Still lacking some final info, I hope to be able to finalise all by the end of the week. But what a learning curve! I have acquired new vocabulary and most importantly, a better understanding of the French system. And I promise you - starting an enterprise in France ... is nie vir sissies nie!!!!
Other things that have kept me quite busy was a full day in Paris attending a conference on the evaluation of development projects (but it was the first day after our time was changed to summer time, hence I was very sleepy after getting up much earlier than usual). I left earlier to meet some friends who were in Paris for a few nights. It was wonderful to see them and even though they are English, my brain just kept on switcing my tongue into Afrikaans!
I have also applied to study a Specialised Masters, starting in October. That was another exercise - to research all the possible courses and universities. Once again, a system so different from that in SA! And the arrogance of the professors of some grandes écoles (famous universities with supposedly very high standards) choked me. So I've opted for the 'school' with the friendliest staff and most affordable courses (it is very very expensive to study here). My file was submitted this past week, so if they accept that, the next step will be to appear in front of a panel on 12 April to be interviewed. All in French as the course will also be in French (unfortunately the ones presented in English were very expensive or did not interest me). So cross your fingers that I'll survive!
I know I owe quite a few people responses to their mails, please bear with me! I hope to recommence blogging and responding to mails by next week!
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