Unregulated Liberal

The unregulated liberal professions includes all professions that are not commercial, craft, industrial or agricultural and that are not part of the regulated liberal professions. There is no official list of unregulated liberal professions, including: consultant, sports coach, sophrologist, developer, editor, trainer, etc.

When choosing a structure for carrying out an unregulated liberal activity, different elements must be taken into account:

1- Wish to practice alone or with others

• Wish to practice alone
  The possible structures are as follows:IS) with option for the micro-company regime, single-member company with limited liability (EURL), single-person simplified share business (SASU)
• Wish to associate with several
  A business must be created: it can be a simplified business by actions (SAS), a limited liability company (SARL), a public limited company (SA), or a limited partnership (SCA).

2- Liability of the contractor and/or partners

The legal form chosen has consequences for the protection of the personal assets of the entrepreneur and his liability.

• By choosing the : the contractor has a professional heritage automatically separated from his personal assets. In the event of fraud and serious breaches, the tax authorities and social security bodies may demand payment of their debts on professional assets and staff.
• By choosing an SAS, a SARL or an SA : the responsibility of the partners is limited the amount of contributions to the capital of the business. However, the personal liability of the manager may be incurred when a mismanagement has been committed or if he has acted as a personal surety.

3- company management

The operation of the {circumflex over (EI)} is simpler and faster than that of a business.

The entrepreneur who chooses topractice in IS is subject to actual tax regime (liberal profession in controlled declaration). He must keep a newspaper book detailing his income and professional expenses. It also keeps a register of fixed assets and depreciation, which mentions the date of acquisition of fixed assets (or date of creation): equipment, customers, buildings, vehicles, etc. , their nature and cost price, the details of depreciation, in the event of disposal: the date and the sale price.

On the other hand, the leader of a Commercial business (of the SARL or SAS type) must draw up annual accounts (balance sheet, income statement and annex) at the end of each accounting year. Within 6 months of the end of the financial year, the partners must approve the annual accounts and decide on the allocation of the company's income. The leader must then drop accounts at the registry of the commercial court.

4- Creation costs

The creating a ₪(EI) is faster and cheaper than that of a business: there is no drafting of statutes, no payment of share capital and no legal announcement costs at the time of incorporation.

The establishment of a liberal-minded person is free of charge.

The creating a business (SAS: titleContent, SASU: titleContent, SARL: titleContent, EURL: titleContent, SA: titleContent, etc.) requires registration fees and the publication of a legal announcement. The cost of the registration formality on the company formalities window is €33.83. In addition to that mandatory the declaration of beneficial ownership which amounts to €19.33 and the publication of a legal announcement.

A simulator is used to calculate the amount of a legal advertisement:

Calculate the amount of a legal ad

5- Social plan of the entrepreneur

Depending on the legal form chosen, the entrepreneur is affiliated to a specific scheme:

• The micro-entrepreneur benefits from the micro-social diet. This scheme allows the company to pay its social security contributions on the basis of its turnover. If the turnover is zero, no social contributions are due. The contribution rate applied to turnover depends on the nature of the activity. For example, for a liberal activity, the amount of social security contributions is 25.6% the amount of revenue or turnover received.
• The individual entrepreneur, the controlling partner of SARL, the partner of EURL and the partner of CNS: titleContent shall be social security scheme for self-employed persons. integrated into the general scheme. For the first two years of activity, as the head of company has no professional income, his provisional contributions are calculated, on a provisional basis, on a flat-rate basis corresponding to 19% the annual Social Security ceiling (PASS), or €9,131 in 2026. In practice, the head of company does not pay any contributions for a period of 3 months (90 days) from the date of start of activity.
• The President of SAS: titleContent or SASU: titleContent, the President and Director of SA: titleContent, the minority or non-partner manager of SARL: titleContent are affiliated with general social security system as an employee equivalent manager. Payroll taxes account for about 60% of his gross remuneration. They are paid monthly via the registered company declaration (DSN). If the manager does not receive remuneration, no social contributions (i.e. employer and employee contributions) are due. The manager cannot benefit from unemployment insurance under the general scheme. If he wishes, he can take out supplementary unemployment insurance.

To find out the amount of social contributions, the Urssaf provides the following simulator:

Income simulator for self-employed

6- Taxation of profits

Depending on the legal status chosen, the entrepreneur has the choice between different possible tax regimes:

• Micro-BNC regime —Applies when the CA: titleContent HT does not exceed for 2 consecutive years €83,600. A flat-rate reduction of 34% applies to the total amount of turnover excluding VAT. With this plan, the contractor has no accounting to keep, he just has onerecipe book to be filled.
• Regime of controlled reporting : it applies to liberal professions whose turnover exceeds €83,600. It also applies to all companies who wish to deduct their actual expenses (rent, material, professional expenses, etc.). The trader shall keep a journal of revenue and expenditure and a register of fixed assets and depreciation.
• Business Tax (SI) System : it can be chosen for all company shapes including the {circumflex over (X)}.

The Urssaf offers a tool to choose the most suitable legal form (or status) depending on the activity carried out:

Find the right legal status for your business

Regulated Liberal

A profession is regulated when it is necessary to hold a specific diploma to enter the profession, to pass examinations such as state examinations, and/or to register with a professional body, or a professional order (bar association, order of accountants, etc.) in order to be able to practice it.

The regulated liberal professions are organized into 3 families:

• Professions of health : doctor, dentist, midwife, pharmacist, physiotherapist, dietician, etc.
• Professions legal or judicial : notaries, lawyers, administrators and judicial agents, clerks of commercial courts and commissioners of justice, etc.
• Professions techniques and living environment : chartered accountant, auditor, surveyor, industrial property attorney, architectetc.

The creator of a regulated liberal activity must take into account various elements:

1- Wish to practice alone or with others

The creator must consider whether or not to associate:

• Wish to practice alone : the possible structures are:
  
  • ₪(EI) or EI with possible option for micro-company regime.
  
  
  • Business of single-person private practice with limited liability (SELURL) and business of single-person private practice with simplified shares (SELASU)
• Wish to associate with several : a business must be set up which has a legal personality:
  
  • Professional civil business (SCP)
  • Private practice limited liability company (SELARL) or a simplified business for the exercise of free shares (SELAS) or anonymous private practice business (SELAFA) or private practice business for limited partnerships (SELCA)

2- Liability of the contractor and/or partners

The legal form chosen has consequences for the protection of the personal assets of the entrepreneur and his liability.

• By choosing the : the contractor has a professional heritage automatically separated from his personal assets. In the event of fraud and serious breaches, the tax authorities and social security bodies may demand payment of their debts on professional assets and staff.
• By choosing a SALT: titleContent :
  
  • Responsibility limited partners who do not carry on business in the business. Their responsibility is limited the amount of contributions to the capital of the business.
  • Responsibility united and indefinite associates of SEL who are engaged in a professional activity. They are responsible for their entire heritage.
• By choosing a Professional Civil business (PCS) : the partner is responsible jointly and indefinitely debts of the business on all its assets. This means that a creditor can, in the event of default of the business, turn against one of the partners and demand payment of the entire debt. Each partner is personally responsible for all the professional acts he performs and the business is jointly and severally liable with him. Only liberal professions authorized by decree may use the form of SCP (architect, chartered accountant, veterinarianetc.).

3- company management

Administrative management of l'' (EI)) is simpler and quicker than that of a liberal exercise business (SELARL: titleContent, SELAS: titleContent, etc): no convening of associates to meetings for the approval of accounts or for any modification of the business.

The accounting of a {circumflex over (a)} is established solely by the Head of company. It doesn't have to be approved by other people. It is not necessary to file the annual accounts with the registry of the commercial court.

On the other hand, the leader of a Liberal Exercise business (SEL) is subject to various accounting obligations:

• Drafting of an internal accounting manual for the company that describes the organization of the structure.
• Accounting journal keeping: journal and general ledger
• Conducting an annual inventory
• Preparation and filing of annual accounts (balance sheet, income statement and annex) at the end of each accounting year. Within 6 months of the end of the financial year, the partners are convened to approve the annual accounts and decide on the allocation of the company's income. The leader must then drop accounts at the registry of the commercial court.

4- Creation costs

The cost of setting up the company can also be taken into account:

• The creation of a liberal business is faster and cheaper than that of a business: there is no drafting of statutes, no payment of share capital and no legal announcement costs at the time of incorporation. In addition, there is no creation fee for the "liberal" and the "liberal" who has opted for the micro-company.
• The creation of a business in a commercial format (SELARL, etc.) with a liberal object includes the registration costs: the cost of the formality of registration of a commercial business is €33.83. In addition to that mandatory the declaration of beneficial ownership which amounts to €19.33 and the publication of a legal announcement.
• The creation of a Professional Civil business (PCS) costs €60.38. To this must be added the declaration of beneficial ownership which amounts to €19.33 and the publication of a legal announcement.

A simulator is used to calculate the amount of a legal advertisement:

Calculate the amount of a legal ad

5- Social plan of the entrepreneur

Depending on the legal form chosen, the entrepreneur is affiliated to a specific scheme:

• The president of a simplified private practice business (SELAS) or a single-person simplified private practice business (SELASU), the president and director of an anonymous private practice business (SELAFA), the minority or unassociated manager of a private practice business with limited liability (SELARL) are affiliated to the general social security system as employee-related manager. Social security contributions are high. Depending on the nature of their activity (e.g. veterinarian or chartered accountant), employees are required to payan additional contribution supplementary pension scheme.

• The individual entrepreneur, the majority associate officer of SELARL, the associate officer of a single-person private practice business with limited liability (SELURL) are affiliated with the social security scheme for self-employed persons as a self-employed person (TNS): the creator is liable to pay social contributions from the first year on an estimated flat-rate income.

A simulator estimates the amount of contributions made by the professional:

Income simulator for self-employed

6- Taxation of profits

Depending on the legal form chosen, the entrepreneur has the choice between the following tax regimes:

• The micro-BNC regime applies when the HVAC: titleContent does not exceed €83,600 for 2 consecutive years.
  One flat-rate abatement from 34% shall apply to the gross annual revenue received.
• The controlled reporting regime applies to professionals whose turnover exceeds €83,600. It also applies to all companies who wish to deduct their actual expenses (rent, material, professional expenses, etc.). The trader shall keep a journal of revenue and expenditure and a register of fixed assets and depreciation.
• The business tax (IS) system can be chosen by all legal companies (businesses, individual enterprises).