If the market has significant business potential, developing a business plan is a common step. This document makes it possible to predict the financial stability of the car rental company and lay the foundations for a sustainable business model.
It includes, among other things:
the need for initial financing, such as the purchase of rental cars
general costs such as car maintenance, insurance premiums, etc.;
Revenues such as rental fees for different types of vehicles.
Drafting such a document can be very helpful in convincing your potential funders (especially banks) of the viability of your organization.
Opening a car rental agency: what is its legal status? Whether you want to open a luxury car rental agency or one that offers more affordable cars, it is essential to choose the right legal regime to carry out your activity.
While micro-enterprises may seem incompatible with car rentals, other legal forms such as SAS and SARL, as well as their single-member versions, seem more appropriate.
Micro-business and car rental: incompatible? Adopting the self-employed regime for car rental is generally not suitable for opening a car rental agency. In fact, to create an agency, it is necessary to acquire vehicles to form a fleet. This requires a considerable investment.
However, the scheme for self-employed persons, established by the Law of 4 August 2008 on the modernisation of the economy, does not allow the VAT paid on purchases to be recovered, nor to deduct expenses from turnover, nor to amortize investments.
The business model proposed by the microenterprise would not be profitable for this activity. Therefore, this regime is inappropriate for this type of activity.