Become a Merchant Formalities and advice

Trading profession is one of the most popular professions across the world. No matter where you live, you will always have traders. COVID-19 has encouraged people to get closer to their local business. Merchant plays an important role in the life of the community. In this article, we explain what the formalities are and provide you with some important information to become a trader!

What are the missions of a merchant?

A trader is above all a good seller. He buys products from producers, wholesalers or craftsmen and sells them to persons in his business. Merchant is present in all sectors like food, beauty or IT.

If the merchant has his own business, his missions are divided into two axes:

  • commercial sector : The salesperson is responsible for selling the business, filling the shelves, taking care of the customer. These tasks can be delegated to vendors. The seller should also have potential for suppliers or wholesalers.
  • management : This is the administrative part of the work. The trader maintains his accounts, replenishes stocks or takes care of human interactions within the business.

Becoming a trader requires great adaptability as it is a multi-tasking task.

What are the conditions to become a trader?

To become a trader, you have to fulfill certain prerequisites.

First, you must be an adult or a free minor. Cannot become an adult trader under guardianship or curatorship.

Second, you must not have convictions that prevent you from running a business or practicing for personal bankruptcy. This can result in a conviction for theft, bankruptcy or fraud.

You cannot trade with these trades:

  • Ministerial Public Officials;
  • lawyer ;
  • judiciary administrator;
  • Auditor;
  • accountant;
  • architect ;
  • legal representative.

In most cases, public sector employees cannot be businessmen. If you want to start your trading activity along with any other job, make sure your employment contract authorizes you to do so.

If you are not a French but a European citizen, you are subject to the same prerequisites. If you are from outside the European Union, you will need to apply for a residence permit in France.

Diploma is not required to be a trader, but it is strongly advised to at least follow some training. You can go for the cap from the third. CAP offers a number of training courses to become a trader depending on your area of ​​interest. You can complete this CAP with a professional level graduation. If you want to take training after your technical or general graduation, you can go for techno-commercial BTS or an operational commercial management BTS. This two-year course will give you the basics of sales techniques and business management.

What qualities and skills are required to become a trader?

A merchant advises his customers to sell the product to him. He should be attentive and helpful. In order to be able to manage his multitasking situation as much as possible, the trader must have a very good ability to adapt and be very organized.

The trader should have strong entrepreneurial and managerial skills. He must know how to present himself and represent his business in front of his colleagues. It’s even better to have a solid foundation in accounting and negotiation.

What is a trader’s salary?

A trader’s salary varies according to his seniority, trading expenses or number of signals. A trader starts with around minimum wage and earns an average of 2000 Euros per month during his career. Some traders can go up to 3000 euros.

If you work for a company, it depends on the pay grid and the bonuses your employer gives you.

How to choose the right legal status to become a merchant?

You can be a businessman and an employee. In this case, you have the position of Employee. To become a merchant and business manager, you need to choose your legal status.

You have a choice between several situations:

You may also be interested in Legal forms such as SASU, EURL or SAS.

When setting up your business, don’t forget to open a business bank account and complete these steps:

  • Write articles of association;
  • publish in the newspaper;
  • transfer your capital to a professional bank account;
  • Register with RCS (Register of Commerce and Companies).

For more detailed information, you can inquire at the CFE (Centre de Formalité des Entreprises).

Becoming a Trader: Summary

In short, to become a trader you need to know:

  • The APE code to become a Merchant is: 4719B;
  • You do not need to be a graduate but management training is recommended;
  • A trader’s salary varies between the minimum wage and around €3,000 and more;
  • You have to register with RCS;
  • Capable CFE is CCI.

questions to ask

Who can become a trader?

To become a trader, you must be an adult or a free minor. You may not be under curatorship or guardianship. If you have been banned from running a business or have been barred from practicing for personal bankruptcy, you cannot be a businessman.

What is Merchant Card used for?

A merchant card is a document that authorizes you to practice professionally outside the municipality where your business is domiciled.

What is the legal status to become a trader?

To become a trader, it is advisable to start as a self-entrepreneur. You can then set up your business as an EIRL or SAS.

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