What is the nature of activity?
Every initiator of a business creation project must define the nature of its future activity. The nature of the activity has consequences with regard to taxation and formalities. The nature of the activity can be:
It can sometimes happen that the nature of the activity is mixed, that is, both commercial and liberal. In that case, the project manager must determine what the main activity is and the ancillary activity carried out in continuation of the main activity.
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Choose your type of activity
A commercial activity consists of buying goods to resell them in the state. It can be wholesale or retail. Sales of services can also be a business activity: real estate, hotel and catering, etc.
Industrial activity is a production or processing activity using industrial tools, handling, storage and storage and extraction.
The craft activity consists of using know-how to carry out a production, processing or service activity. For example, perform a craft activity, hairdressers, masons, painters, etc.
The list of craft activities is laid down by decree. They are categorized: food trade, construction, manufacturing, crafts.
Considered as agriculture all activities in the field of breeding or vegetable production as well as all activities that interfere with the extension of agricultural utilization, such as the activities of tourist reception, production of electricity or heat.
Liberal activities include all intellectual, caring or technical services that require professional qualifications and respect for professional ethics.
>> Read also – Liberal profession: definition and examples
Special case of services
The nature of a service’s activity can be commercial, liberal or even artisanal. E.g :
- Travel agencies, real estate agents, insurance agents, hotel owners, etc. is engaged in the provision of services of a commercial nature.
- Taxis, hairdressers, chimney sweeps, etc. deals with services of a craft nature.
- Doctors, osteopaths, translators, etc. run a liberal service business.
>> Read also – VRP: status and remuneration of seller, representative and clerk
The effect of the nature of the activity
The nature of the activity has tax significance. Income from the pursuit of a commercial, craft, liberal, agricultural or industrial activity is not taxed under the same tax system:
- Income related to the pursuit of an agricultural activity is subject to the tax system on agricultural profits.
- Income related to the pursuit of a liberal activity falls under the tax system for non-commercial profits.
- Income related to the pursuit of a commercial, industrial or craft activity is subject to the tax system for industrial and commercial profits.
Similarly, the business formality center where business creation formalities are to be performed is not the same depending on the nature of the activity.
- With regard to commercial and industrial activities, the Chamber of Commerce and Industry is competent.
- With regard to craft activities, the Chamber of Commerce and Crafts is competent.
- In terms of liberal activities, it is Urssaf that is competent.
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