Setting up your production company: definition
You’ve often heard of “production company,” “production agency,” or “audiovisual company.” All of these terms are used to describe organizations that design and produce audiovisual, musical, or artistic works.
Generally, the most widespread and well-known production companies are those related to the audiovisual world.
☝️ Good to know:
If you want to set up your own production company , you should know that the steps are the same as for creating a traditional business.
How to become a producer?
If you want to become a producer in the audiovisual industry , you should know that this profession is open to many entrepreneurs. No specific diploma is necessary to get started in audiovisual production, whether in the production of films, video clips and other institutional productions or the recording of festive events. Only your fine creative qualities and your rigorous management skills will be useful to you.
However, if you’re looking to acquire or further develop these skills, some schools and universities offer diploma programs. These programs range from a BTS to a Master’s degree specializing in audiovisual production. The advantage of such a specialization will allow you to develop your knowledge in both administrative and financial management as well as in the field of audiovisual production.
What skills are required to set up your own production company?
Typically, a producer is someone passionate about the world of cinema or audiovisual. As such, you must be familiar with all the ins and outs of this profession.
However, a producer is also considered an entrepreneur. Indeed, a producer must simultaneously manage various processes (launching their project, finding financing, cultivating professional relationships, etc.).
To ensure the sustainability of your professional project, follow our tips for setting up your business .
When you decide to start your own production company , you have several options. You can decide to start a business or opt for the creation of a corporation.
Setting up your production company under the micro-enterprise regime
The micro-entrepreneur or self-employed status is often preferred if you want to easily and quickly set up your business. Indeed, the steps for creating a self-employed business are relatively simple. All you need to do is declare the start of your activity via the INPI website to access the one-stop shop (new platform since January 1, 2023).
⚠️ Attention:
You can benefit from the self-employed scheme as long as your annual turnover excluding tax does not exceed the threshold of €77,700 . This threshold applies to all service provision activities, including audiovisual production.
By opting for this legal system, you benefit from numerous advantages:
A simplified tax regime : you benefit from a tax deduction on your turnover to compensate for the non-deduction of expenses related to your self-employed activity. For a service provision activity, the tax deduction amount is 34%. This means that you are only taxed on 66% of your turnover. Furthermore, under the micro-enterprise regime, you are automatically subject to the VAT exemption regime, as long as your annual turnover excluding tax is less than €37,500.
An attractive social security system : the amount of your social security contributions is determined based on your turnover.
Simplified accounting : no balance sheet or income statement is required. You simply record all your expenses and income chronologically in a ledger.
Create a production company
Audiovisual production involves investing significant amounts of money to finance projects. In this case, you can choose between a simplified joint-stock company (SAS) and an limited liability company (SARL).
Opt for the creation of an SAS
The simplified joint-stock company (SAS) is a structure that offers great flexibility to partners. Indeed, these individuals are free to set the rules they wish in the company’s articles of association.
If you choose the SAS, you will benefit from a protective social security system . Indeed, managers are covered by the general social security system as employees. Therefore, you benefit from the same protection as an employee, with one exception: you do not pay unemployment insurance.
Finally, the advantage of this company lies in the ease of entry of new partners. Indeed, the shares of the SAS are freely transferable.
Opt for the creation of an SARL
The limited liability company (SARL) is a more rigid structure from a legal perspective. The partners do not have any freedom in drafting the SARL’s articles of association, as many provisions are imposed by law.