Are you starting your own business? Do you have multiple activities? It's essential to define your core business: your APE!
The APE or Activité Principale Exercée is used to define the main activity carried out by a company. It is represented by a code made up of 5 digits and a letter.
These codes are compiled by INSEE, which maintains an up-to-date record of all professional activities carried out in France. INSEE then produces a report designed to give the most accurate picture possible of economic activity.
That's why it's imperative that every company has an APE code that is truly representative of its activity.
Yet the importance of this code tends to be underestimated. To remedy this, we focus today on the APE code.
You may come across the term NAF code in your administrative procedures. No need to worry!
The latter refers only to the Nomenclature d'Activités Françaises, whose sole purpose is to take stock of economic activity in France, and which can therefore be used to assign an APE code.
As a result, the APE code is often referred to as the NAF code.
The only notable difference lies in the issuer of such a code. However, the latter remains exactly the same
It's important to remember that it's not the entrepreneur himself who determines the APE code corresponding to his activity.
The latter is granted by INSEE when the company is registered, following submission of a complete file.
INSEE, however, relies primarily on the corporate purpose defined when drafting your company's articles of association to determine which APE code best represents the activity of the company in question.
It is therefore essential to determine the latter carefully when drafting the articles of association.
For this reason, we strongly advise you to define a very broad corporate purpose, so as to anticipate as far as possible any possible changes in your business in the future.
However, if your company is moving in a new direction, and your APE code is no longer appropriate, you can ask for it to be changed.
In certain situations, such as "a new activity", "the rectification of an anomaly" or "a potential double registration", a change of APE code may be authorized. This request for a new APE code must be made to your CFE or Centre de Formalités des Entreprises.
On the contrary, if there is an error concerning the APE code determined by INSEE for your main activity, a request must be sent to the INSEE regional center corresponding to the location of your head office.
This modification request can be made for only one of your sites if you wish.
Finally, if a double registration is found, this anomaly must be reported to your INSEE regional reference center, as the law only allows a single "inter-administration management" number.
For some regulated professions, or other liberal professions, an incorrect APE code can cause real inconvenience, up to and including the total impossibility of doing business.
It is therefore essential to ensure that your APE code corresponds to the type of activity you carry out.
In conclusion, it's vital to take the time to draw up your articles of association carefully, as these will determine your APE code, and therefore often your ability to operate or at least develop your business.
You may also wish to enlist the help of a professional to ensure that your APE code is as representative as possible of your activity.
Written by our expert Quentin Moyon
May 7, 2018
