How do you set up as self-employed or freelance in France – and what are the pros and cons of the micro-enterprise system as the French call it? We asked French-born, UK-based Eric Donjon of The European Concierge, who has helped many expats to start a new life in France. Here he highlights the key points of registering as an auto entrepreneur, self-employed.
Understanding the terminology – Auto-entrepreneur, micro-enterprise, Entrepreneur Individuelle
Let’s assume that you’re moving to France with a visa that allows you to work/set up a business. There are several things to consider, not least that you will need to submit your visa-compliant business plan (in French) for approval. Once that is organised, approved and you have successfully applied for your visa, then you’ll need to register to work.
Auto-entrepreneur (AE), Entreprise Individuelle (EI) and micro-entreprise (ME): when you’re setting up as self-employed in France, you’ll come across all these terms. The confusion is due to fact that the Auto-entrepreneur used to be another facet of the self-employment system but was merged with ME in 2016. So effectively, these represent the same type of business structure, just from a different perspective. The most important to know is that all are self-employed status.
The ‘Enterprise Individuelle’ is the legal form for a sole trader. The’ Micro Entreprise’ is the tax and social structure of a sole trader.
Though the purpose of the ME system is to simplify admin, this is France, and there’s plenty of life and paperwork left in that admin task list even if it has been “simplified.”
So, let’s start by highlighting below some of the key points of this business structure and the key questions my clients ask me:
Advantages
- Good to test your idea, minimum risk
- No accountant needed, so less cost
- Simplified fiscal system for tax and social contributions, no surprises
- No VAT to charge (up to certain earnings limits)
- Access to healthcare in France from first day of set up (formalities will still need to be followed)
Disadvantages
- Limited earnings levels
- No reduction for costs
- You can’t claim expenses/costs
What are the Earnings levels for auto entrepreneurs
You are restricted to a certain level of earnings as a micro-entreprise, and if you exceed the set amount, you’ll have to scale up to the next business status level.
These limits can be adjusted each year. If you know you will earn more than the limit in year 1, you should look at a different structure like ‘Entreprise Individuelle au reel.’ Most people assume there’s only one way to go – there isn’t, but it takes expertise to know the right route.
The earnings limits for an ME differs according to what sort of activity they are engaged in – which includes the classifications BIC or BNC. BIC refers to industrial and commercial profits, BNC refers to non-commercial profits.
- €188,700for the sale of goods, sales for consumption on the premises and the supply of accommodation (excluding furnished rentals other than furnished tourist accommodation or bed and breakfasts) (1st category);
- €77,700for the provision of services falling under the category of industrial and commercial profits (BIC) or non-commercial profits (BNC) (2nd category).
- €15,000for unclassified furnished tourist rentals
Important note – there is an exemption from paying TVA (the French equivalent of VAT) on services and sales made by the micro-enterprise – as long as you don’t exceed the limits set as follows (as at 2026):
€36,800 service activities
€91,900 for sales of goods, accommodation.
How much will you pay on your business earnings?
Like any business in France, you will contribute into the social system via the URSSAF, the collection arm for these contributions. The social contributions are collected either monthly or quarterly based on your earnings. You simply enter in how much you’re earned to the URSSAF online declaration system, it will immediately notify you how much you should pay, you confirm, and the amount is deducted at a date notified. There are set dates for inputting and if you miss one, you may be fined.
The percentages are reviewed each year, but the following is a good overview of what you can use as a guide to how much social contribution is to be paid (2026):
12.3%: sales and trading activities, gites, bed & breakfast. Commercial services linked to Chambre de Commerce
21.2%: Manual activities (hairdressers, electricians, commercial services & consultancy services…)
*26.1%: Professionals attached to CIPAV under BNC system.
How do I set up my activity?
Since January 2023 all creations, modifications and closing of micro-entreprise activities are handled from one website, this is called the INPI. It is not always the easiest of portals to work with: Portail e-procedures (inpi.fr)
The creation of your activity is relatively simple once you know which category you fall under, but that in itself can also be challenging as there are many choices of categories. And choosing the right category is very important as this defines what tax/contributions you will pay. You will also, of course, need to prove your ID and address in France. Modifications of businesses via this INPI system are complex as digital IDs are needed.
Once you have created your activity, your file will be sent to several different organisations (INSEE, CPAM, Tax office….). You will receive your SIRET number (business registration number) which must go on all your legal documents and invoices which must include information such as tax status, be numbered and include your EI status.
This is of course a summary of setting up as self-employed in France and the system generally works well.
But if it all sounds a bit much, too time consuming when you’re trying to get a business up and running, or you need help with submitting your business plan for your visa – then help is at hand every step of the way from applying for the visa, creating your business plan, setting up your business, declaring social charges, communicating with various government bodies help with tax and legal requirements etc.
If you’d like more information and help setting up your business in France get in touch with Eric at : theeuropeanconcierge.com
