Is it possible to set up a business without money?
What forms of enterprise are available on a small budget?
It's possible to start a business with little or no money, but the opportunities are limited. You can choose between several legal forms:
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Sole proprietorship (EI) or micro-business ;
- Entreprise unipersonnelle à responsabilité limitée unipersonnelle (EURL) ;
- Société par actions simplifiée unipersonnelle(SASU);
- Limited liability company (SARL) ;
- Simplified joint stock company (SAS).
In theory, it's possible to set up a business with one of the above legal forms on a very low budget. In practice, however, this can prove complicated in some cases. It's also crucial to project sales assumptions when choosing the legal form best suited to your business.
A business start-up project on a limited budget: is it feasible?
Setting up a business on a limited budget is possible. However, you need to determine the precise contours of your project and take into account certain operational characteristics: amount of share capital, legal form, etc. Let SeDomicilier show you exactly how to set up a business in France on a limited budget. It's also crucial to ensure that your legal documents are regularly updated to comply with current regulations.
Defining and evaluating your idea
Find a low-budget business idea
Finding a low-budget business idea requires a good dose of creativity and thorough research. It's essential to focus on market needs and existing opportunities. Here are a few steps to guide you through the process:
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Identify unmet market needs: Observe your environment and listen to consumers' complaints or unfulfilled desires. This can be a valuable source of inspiration.
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Think of innovative solutions: Think of creative, low-cost ways to meet these needs. Sometimes, a simple improvement to an existing product or service can make all the difference.
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Estimate costs and resources needed: Make an estimate of the initial costs and resources you'll need to get your idea off the ground. Make sure these costs are compatible with your limited budget.
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Test the idea with potential customers: Before taking the plunge, gather opinions and feedback from potential customers. This will enable you to validate the viability of your idea and make any necessary adjustments.
Test your business idea
Testing your business idea is a crucial step in ensuring its viability and identifying any weaknesses. Here are a few steps to effectively test your idea:
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Conduct market research: Understand the needs and expectations of your future customers. Analyze the competition and identify opportunities and threats.
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Create a prototype or model: Develop a prototype or model of your product or service. This will enable you to test its feasibility and get concrete feedback.
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Gather feedback: Solicit opinions and comments from your potential customers. Their feedback will help you improve your idea and make it more attractive.
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Evaluate the results: Analyze the feedback and adjust your idea accordingly. This step is essential to fine-tune your project before launching it on the market.
The importance of market research before setting up a business
Market research is an essential step before setting up a business. It helps you understand customer needs and expectations, identify competitors and validate the viability of your idea. Here are some of the steps involved in carrying out a market study:
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Define objectives and research questions: Clarify what you want to find out from your market research. This can include questions about customer preferences, market trends, etc.
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Collect data and information: Use a variety of sources to gather relevant data. This can include surveys, interviews, analysis of existing data, etc.
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Analyze the data: Examine the information gathered to identify trends and insights. This analysis will help you make informed decisions.
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Evaluate the results: Use the results of your study to adjust your idea and strategy. This will enable you to launch your business on a solid footing.
1 euro minimum share capital: a good idea?
What is share capital?
Start-up capital, also known as share capital, is deposited with a bank in a special account or with a notary when a company is set up. This is an essential step in the creation of a company. Share capital is included in liabilities on the balance sheet.
Share capital is a strategic financial reserve for the launch of your company. It can be used to relieve your cash flow and cope with fluctuations in the early stages of your business. Throughout the life of your company, share capital acts as a guarantee for financiers and creditors.
1 euro share capital: what is it?
Since the Dutreuil law of 2003, it has been possible to create a company with just one euro. The aim of this law was to simplify administrative procedures to encourage the development of entrepreneurship.
However, the 1 euro share capital may have repercussions on legal costs. If annual losses exceed half the company's capital, i.e. 50 centimes, the entrepreneur must call a General Meeting.
Setting up a company with a share capital of one euro is likely to pose a credibility problem. Indeed, the share capital is the sum appearing on all official company documents: invoices, quotes, delivery notes and so on. Mentioning a single euro on your share capital can be worrisome:
- Your banker ;
- Your potential customers ;
- Your service providers, etc.
In addition, to access certain business loans, you need to offer certain guarantees to financiers. A one-euro share capital is by no means a guarantee of financial security for a company.
An obstacle to your company's development
With capital of just one euro, your potential partners are likely to question the economic feasibility of your development project. Thanks to a well-executed market study, you'll be able to determine the projected share capital you need to launch your business with complete peace of mind.
Starting your own business
If you'd like to take the plunge into entrepreneurship, but have very limited funds at your disposal, you can turn to auto-entreprise.
What is an auto-entreprise?
An auto-entrepreneur or micro-entrepreneur is a sole proprietorship benefiting from a micro-social and micro-tax regime. The micro-entrepreneur's social security contributions and income tax are calculated on the basis of his or her sales. They must declare their sales every month or quarter on the URSSAF website or application dedicated to auto-entrepreneurs.
VAT exemption thresholds
Micro-entrepreneurs are not required to charge VAT, provided they comply with certain sales ceilings:
until December 31, 2024
Sales of goods, accommodation services, etc :
Basic ceiling: €91,900
Tolerance threshold: €101,000
BIC or BNC services
Basic ceiling: €36,800
Tolerance threshold: €39,100
From January 1ᵉʳ 2025, the VAT basic exemption ceilings change:
Sales of goods, accommodation services, etc :
Basic ceiling: €85,000
Tolerance threshold: €93,500
BIC or BNC services
Basic ceiling: €37,500
Tolerance threshold: €41,250
In 2025, the ceilings will be reduced for sales of goods and accommodation, while the thresholds for the provision of services will be increased.
The limits of auto-entreprise
Although auto-entreprise offers many advantages in terms of flexible management formalities, it is subject to sales ceilings (excluding VAT):
Sales of goods, accommodation services, etc.
Sales threshold: €188,700
BIC or BNC services
Sales threshold: €77,700
Rental of unclassified furnished tourist accommodation
Sales threshold: €15,000
Depending on the type of business you want to run, you may have to opt for the micro-enterprise system, because of the sales limits imposed on auto-entrepreneurs.
BPI France schemes
The Banque Publique d'Investissement (BPI) offers several types of assistance for entrepreneurs wishing to launch their own business:
- The start-up guarantee as a complement to bank loans.
- Bank guarantee to strengthen cash flow.
- The French Tech grant.
- Regional innovation partnerships (PRI).
- The regional planning bonus (PAT).
Tax incentives
The government has mobilized tax incentives for business start-ups, through exemptions from taxes and social security contributions:
- Income tax exemption in regional aid zones (AFR).
- Exemption from corporate income tax in urban tax-free zones (ZFU ).
- Exemption from corporate income tax and social security contributions in areas classified as "Bassin d'Emplois à Redynamiser" (BER).
- Exemption from income tax, employers' social security contributions and CFE in rural revitalization zones (ZRR).
- Exemption from local taxes for business start-ups in priority urban districts (QPPV).
State aid
Depending on your status, you may be eligible for continued unemployment benefit or other subsidies to help you launch your business with limited funds.ACRE, or assistance for setting up or taking over a business, is aimed at the unemployed. ACRE recipients benefit from a 50% exemption from social security contributions over a period of three calendar quarters.
At the same time, it is possible to take advantage of the "Aide à la reprise et à la création d'entreprise "(ARCE) scheme, enabling jobseekers to receive 60% of their unemployment benefit in the form of a capital sum. Last but not least, the NACRE scheme has recently been replaced by a regional business start-up support scheme to help you set up your project and structure its finances.
Do you have know-how just waiting to be expressed independently? You can start your own business with very little initial capital. The micro-enterprise solution is particularly attractive, thanks to a simplified tax system and real flexibility in day-to-day management. To help you become independent, explore the various national and regional aid schemes available.
Drafting the articles of incorporation
Drafting the articles of incorporation is a crucial stage in the creation of a company. The articles of incorporation define the company's operating rules, as well as the rights and responsibilities of the partners. Here are a few steps to help you draft your articles of incorporation:
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Define the company's objectives and activities: Be clear about what your company is going to do, and what its short- and long-term goals are.
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Determining the company's legal form: Choose the legal structure that best suits your project (limited liability company, auto-entreprise, etc.).
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Establish rules of operation and governance: Define how the company will be managed, who will make important decisions, and how conflicts will be resolved.
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Define partners' rights and responsibilities: Specify the roles and responsibilities of each partner, as well as how profits and losses will be shared.
It is strongly recommended that you consult a chartered accountant or lawyer to ensure that your articles of association comply with current legislation and meet the specific needs of your company.
By following these steps, you'll be well prepared to launch your business on a limited budget, while maximizing your chances of success.
