The P0 form is the document you need to set up and declare your business as a microentrepreneur, under the status of a sole proprietorship or limited liability company. There are 2 versions: the P0 PL for the liberal professions, and the P0 CMB Cerfa 15253 for craft and/or commercial activities.
Who should fill out the P0 CMB form?
The P0 CMB form is intended for the creators of sole proprietorships opting for the microenterprise tax regime, and carrying on a commercial or craft activity.
Micro-entrepreneurs carry out craft activities when their work consists of manufacturing, transforming or repairing products, by the unit and not in series, by means of manual intervention. They must be registered with the Trade Register.
Microentrepreneurs are in business when they buy and sell goods and merchandise, or sell certain commercial services. This is the case, for example, with fast-food restaurants. In such cases, they must be registered with the Registre du Commerce et des Sociétés.
The distinction between commercial, craft and liberal activities is very important for microentrepreneurs, as it has an impact on :
- The CFE (center de formalités des entreprises) on which they depend and with which they must register;
- The tax category of their income: industrial and commercial profits (BIC) for shopkeepers and craftsmen, non-commercial profits (BNC) for the self-employed;
- The maximum sales ceiling for remaining under the microenterprise scheme.
Should I opt for a sole proprietorship with limited liability?
The P0 form for setting up a craft or commercial micro-business offers two options: sole proprietorship, and sole proprietorship with limited liability.
Unlike the classic sole proprietorship, the EIRL (sole proprietorship with limited liability) protects the entrepreneur's personal assets in the event of business debts.
This means that, in the event of bankruptcy, only the assets previously declared will be seized, without affecting personal assets.
This declaration must be sent to the appropriate business formalities center, i.e. the Chambre de métiers et de l'artisanat (Chamber of Trades and Crafts) for craftsmen, and the Chambre de commerce et d'industrie (Chamber of Commerce and Industry) for commercial activities. This formality is free of charge when carried out at the same time as registering the company, but there is a charge if the declaration is filed at a later date, which means you need to think carefully about this option when you set up your business.
Microentrepreneurs opting for the EIRL are not required to file annual financial statements, but simply to file an annual statement updating their declaration of asset allocation.
As administrative obligations and constraints are limited, it can be very attractive for a microentrepreneur to opt for the limited liability sole proprietorship (entreprise individuelle à responsabilité limitée).
How do I fill in the P0 CMB form to set up a microenterprise?
The P0 CMB form (for "Commerce, Métier et Batellerie") contains a number of boxes, which we'd like to take a closer look at. A great deal of information will determine your company's legal status and tax regime, which is why it's so important to fill in this document very carefully.
Frame 1 and 2
In box 1, you must specify whether you have already been self-employed. If so, remember to enter your SIRET number so that the relevant CFE can update your information.
Box 2 invites you to choose between two legal statuses: sole proprietorship, or sole proprietorship with limited liability, all under the microenterprise tax regime. If you opt for an EIRL to protect your personal assets, you will also need to complete the PEIRL CM form, intended for microentrepreneurs who are craftsmen or shopkeepers under an EIRL.
Frames 3 to 6
Section 3 is for personal information, i.e. your identity and contact details. If your spouse plans to work for your company on a regular basis, you will need to specify in box 4 whether you wish him or her to be a collaborator or an employee.
In box 5, you must declare which property is exempt from seizure in the event of bankruptcy. By default, your principal residence is exempt from seizure, but you can choose to waive this right.
If you have other establishments in another member country of the European Union or the European Economic Area, you must indicate this in box 6.
Frames 7 to 14
In box 7A, you must specify whether your company's address will be that of your home, a domiciliary company or another establishment. If you are an itinerant merchant, you must indicate this, along with the commune of the main market, in box 7B.
The address of your company must be entered in box 8, the date of commencement of business in box 9, and the trade name of your company in box 10. Box 11 is reserved for business buyers.
In box 12, you will indicate the number of employees, and in boxes 13 and 14, the identity and contact details of other people connected with your business, i.e. your spouse or civil union partner, the undivided owner or the person with power to bind the company. If you are setting up your business alone, you do not need to complete boxes 13 and 14.
Executives 15 to 20
In box 15, you enter your social security number, or that of your spouse if you are a collaborator or employee, and you choose the frequency of your contribution payments. This can be monthly or quarterly.
Box 16 allows you, if you wish, to opt for payment in full discharge of income tax, which is a form of withholding tax, with a fixed percentage deducted from your income each time you file your tax return.
You can add comments in box 17, enter a correspondence address in box 18, and request, in box 19, that the information recorded in the Sirene register not be made public.
Finally, you must date and sign the P0 CMB form in box 20.