The goal of this article is to clarify:
- When you need a SIRET number;
- How to incorporate the company in order to get the SIRET number;
- Why in some cases it is recommended to have the registered company closed it in order to avoid any issues with French Tax authorities.
When do you need a SIRET number?
The SIRET number is a unique French business identification number and proves the official registration of a commercial activity.
Indeed, any furnished rental activity is considered a commercial activity by the tax office and thus need to have a SIRET number. It does not matter that you already own a company in another country.
On the other hand, an unfurnished rental activity does not need a SIRET number as it is not considered as a commercial activity. It will obviously have to be declared on your tax return but you need to use other forms to declare this income.
How to get a SIRET number?
In order to get a SIRET number, you need to incorporate your company. The easiest one is the “entreprise individuelle” (sole trader in the UK).
Once you have it, we’ll be able to proceed to your first tax return.
Why choosing French Tax Online to help you fill in your company incorporation?
Registering a SIRET number can be stressful for clients who are unsure where to start. It is important that it is done properly to avoid expensive mistakes.
French Tax Online has tailored a service to clients who are starting a new business, to help them walk through the startup process.
By opting this service, you relieve the burden of stress, anxiety and fear of French rules, regulations and bureaucracies from your shoulders. In fact, we handle all the formalities in French on your behalf.
Learn more on our service here.
What is the difference between a SIREN and SIRET number?
- Your SIREN number (9 digits) identifies your company;
- The SIRET number (14 digits) identifies each establishment operated by the same company.
Can someone who has several properties manage all the renting activities under the same SIRET number?
Yes, an individual can declare the income from 2 or more properties under the same SIRET number.
Is it possible for an individual who has a business in France to use his SIRET number to declare his French real estate income?
Yes, the SIREN number will be the same but the SIRET will be different. Two tax returns will be required in this particular case. Therefore, an individual absolutely need a SIRET number to be able to manage and declare his furnished rental activity, even though the turnover is low.
When and why do you have to deactivate the SIRET number?
As soon as your SIRET number is active, the French tax office is expecting a tax return every year, whether the company has an income or not, until it is officially deactivated.
Failure to inform the authorities may result in them being pursued in the future and receive penalties. The fines can go up to €1500 (150€ for each missing document).
Therefore, if you are no longer renting any property in France, we highly recommend you that you have it closed in order to exempt you from filing tax returns anymore (nevertheless, if you still rent out one or more French properties under this SIRET number, you can leave the company open to be able to submit your declaration for these activities.)
At French Tax Online, we help you through this arduous, complicated and bureaucratic process.
Relax and forget about all the stress and anxiety that this obligation entails. All you have to do is to enjoy the benefit of selling your property.
Learn more on this service here.