Setting up a Business in France – The Micro-entrepreneur

Who can apply?

Any person may, subject to conditions, become a micro-entrepreneur, either as the proprietor (only activity) or as a secondary activity where the person is employed elsewhere. The activity must be carried out as a sole proprietor and be registered with the French Social Security system.  A business already established as an “Entrepreneur Individual” can, under certain conditions, change to the micro-entrepreneur scheme.

Note: the micro-entrepreneur scheme cannot be chosen when the activity is exercised as part of a subordinate relationship where the person must be employed.

Activities between individuals: Your rights and procedures to follow (in French)

Conditions?

For the sole proprietorship to fall under the micro-enterprise tax regime; the turnover must not exceed for a full calendar year in 2018:

  • € 170,000 for the sale of goods, objects, supplies, take away food or food eaten on the premises, or for accommodation services, except for the rental of private furnished properties where the threshold is 70 000 €;
  • € 70,000 for artisans (BIC) or professional operations (BNC).

The company does not need to register for TVA (for invoicing or TVA recovery)for up to 91,000 Euros for a sales activity and 35,200 Euros for a service delivery activity. The micro-entrepreneur cannot deduct any charges (telephone, travel ...) nor write down any equipment.

Note: some activities are excluded from the micro-entrepreneur scheme. In particular, activities related to TVA on real estate (transactions of property sellers, developers, real estate agents, transactions in the shares of real estate companies), rental of empty properties for professional use.

Obligations?

The micro-entrepreneur must:

However, they are exempt from registration fees.

  • Have the necessary qualifications or benefit from professional experience for activities including: the building trades, automotive industry, food, hairdressing etc.
  • Attend the “le stage préalable à l’installation (SPI)” in a Chambre de Metiers, if the business is carrying out an artisanal trade.
  • take out professional insurance for certain activities, in particular for the building,
  • Open a bank account dedicated to the professional activity.

Specifics of the Scheme:

Contributions and social contributions are declared and calculated by sole proprietor by applying a flat rate to the turnover achieved.

A beneficiary of l’Accre (Aide aux chômeurs créateurs ou repreneurs d’entreprise) has a specific rate for calculating contributions and social contributions.

The sole proprietor can opt, subject to conditions, to pay income tax, i.e. to pay the taxes at the same time as the contributions.

The fees for the Chambre de Commerce and the Chambre de Metiers will be due in 2018 by traders, with the exception private furnished rentals and the artisans registered in 2017.

How does it work?

To create your business

If you are an entrepreneur individual and you want to change to the micro-entrepreneur scheme.

  • If you are not changing your activity, complete the online form.
  • If you want to change your activity  you will need to visit your “Centre de formalities des Entreprises”.

How to declare and pay?

  • Upon receipt of your SIRET number, you must register so you can declare and pay online.
  • Every month or quarter, you must report the amount of sales made. The online system calculates your social contributions and charges automatically.
  • If you benefit from “Pôle emploi” or “minimas social” allowances, you should opt for the monthly payment in order to be able to send the supporting documents to the organizations concerned.

To help you with the process there is a guide (in French), mode d’emploi pour déclarer et payer en ligne  details all the steps of registration, declaration and payment.

For more information, there is a questions and answers section (in French)

FAQs

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