Understanding the APE code, or ‘Activité Principale Exercée’, is essential for businesses in France, as it identifies their primary activity sector. Assigned by INSEE upon registration, the code consists of four digits and a letter, reflecting the business’s main activity based on the NAF nomenclature. It applies to various organizations, aids in social contribution determination, and facilitates economic data analysis. APE codes are automatically assigned during business registration, ensuring accurate classification.
Understanding the APE Code in France
The APE Code: Your Business’s Activity Identifier
The APE code, which stands for ‘Activité Principale Exercée’, is a crucial identifier allocated by INSEE (the National Institute of Statistics and Economic Studies) in France. This unique code is instrumental in identifying the primary sector in which a company or organization operates.
Structure of the APE Code
This identifier is assigned during the establishment of the business and is derived from the activity description provided at that time. It can change if the company’s main activity shifts. The APE code consists of a combination of four digits followed by a letter; for instance, ‘64.20Z’ is designated for holding companies.
Universal Application of the APE Code
The APE code is applicable to various types of organizations in France, including:
- Individual enterprises: such as self-employed individuals, artisans, and merchants;
- Commercial entities: including SARL, SAS, SA, etc.;
- Associations: even non-profit organizations engaging in economic activities are assigned an APE code;
- Micro-enterprises: individual structures benefiting from the micro-enterprise framework also receive an APE code.
Accessing the APE Code List
INSEE provides a comprehensive list of APE codes, enabling entrepreneurs to find the code that accurately reflects their business activity.
Distinguishing Between the NAF Code and the APE Code
NAF: The French Activity Nomenclature
Each APE code corresponds to a distinct activity and is rooted in the NAF (Nomenclature des Activités Françaises), which categorizes all economic activities in France. Each sector is assigned a specific NAF code.
Interchangeable Terms: NAF Code and APE Code
While the APE code is a specific identifier for an activity, it is essentially an application of the NAF nomenclature. Therefore, it is common to hear the APE code referred to as the ‘NAF code’.
Deciphering the APE Code
Understanding the Code’s Structure
The APE code is formatted as a combination of four digits followed by a letter. The first digit (or first two digits) indicates the activity sector:
- 0 for agricultural activities;
- 1, 2, or 3 for industrial activities;
- 41, 42, 43 for construction activities;
- 45, 46, 47 for commercial activities;
- 49 to 99 for service activities.
The remaining digits and the letter provide further details about the specific activity. In total, there are 732 different APE codes listed.
Upcoming Changes: NAF 2025
A new version of the NAF, referred to as NAF 2025, is set to be introduced. This updated nomenclature aims to align with current economic trends and standardize classifications across Europe. NAF 2025 will be integrated into the Sirene directory starting January 2026, with gradual implementation in various statistical outputs by the end of 2028.
Utilizing the APE Code
Mandatory APE Code Display
The APE code is included on employee pay slips and is essential for identifying the sector of activity and the corresponding collective agreement. Organizations may choose to display their APE code on commercial documents such as quotes and invoices, although this is not a legal requirement.
Social Contribution Determination
Social protection agencies, including pension funds and mutuals, utilize the APE code to tailor contribution rates according to the sector. Those with particular risks, like construction or manufacturing, may face different contribution rates.
Economic Data Classification
INSEE employs the APE code to collect and analyze economic data by activity sector. This classification aids in the creation of sector-specific statistics and the observation of economic trends. For instance, INSEE organizes entities based on their activities as defined by their APE codes.
Enhanced Organizational Identification
The APE code facilitates easier identification for third parties. Partners, including banks, insurance firms, and suppliers, can gain a clearer understanding of a company’s profile, associated risks, and market position.
How to Obtain an APE Code
Business Registration Process
When establishing a company in France, the business must register with the appropriate business formalities center (CFE), which varies based on the type of activity and legal structure (e.g., the Chamber of Commerce for merchants, the Chamber of Trades for artisans).
Defining the Main Activity
The APE code is not chosen arbitrarily; it is assigned based on the declared main activity. If a business operates multiple activities, it must determine the primary activity by evaluating criteria such as the highest revenue or the largest number of employees.
For companies with both industrial and commercial activities, the industrial activity is considered primary if it accounts for over a quarter of the total revenue.
Automatic APE Code Assignment
The initial registration form must include a detailed description of the business and its activities, which allows INSEE to assign the appropriate APE code according to the NAF nomenclature. Consequently, the APE code is automatically assigned during the registration process.
Final Assignment by INSEE
INSEE then confirms the APE code based on the primary activity description provided by the business. This process ensures that each company is accurately classified within its respective sector.