je suis autoentrepreneur illustration

Je suis auto-entrepreneur

Préface d’Hervé Novelli – Créateur du régime de l’auto-entrepreneur – Vuibert

The auto-entrepreneur scheme in France​

The auto-entrepreneur scheme in France

In France, there are two main types of legal structures for businesses:

  • sole proprietorship (entreprise individuelle);
  • companies.

 

The sole proprietorship, known as entreprise individuelle is a structure that includes self-employed individuals under two tax regimes:

  • traditional real regime ;
  • the micro-enterprise (formerly auto-entrepreneur) regime. 
 

The latter terms are interchangeable for this business type.

If you have French recognition as a disabled worker, you can also benefit from business creation aids with AGEFIPH.

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Understanding the sole proprietorship

Understanding the sole proprietorship​ : Sepia-toned illustration depicting a bustling entrepreneurial scene with various business elements like a cash register, paperwork, and tools symbolizing the auto-entrepreneur scheme in France for 2024. Highlights include thresholds for service and trading activities, emphasizing the VAT exemption limits, tailored for a comprehensive understanding of the sole proprietorship regulations.

Overview of the Auto-Entrepreneur Scheme

Introduced in January 2009, the **auto-entrepreneur** scheme simplifies the registration and management procedures for small businesses. It applies to those under the Micro-BIC or Micro-BNC tax regimes. 

Revenue and VAT Thresholds for 2024

The 2024 thresholds are:

  • €77,700 for service activities;
  • €188,700 for trading activities.
 

The VAT exemption applies up to:

  • €36,800 for services;
  • €91,900 for trading activities.
 

VAT Registration Requirements

If these thresholds are exceeded, VAT must be charged and remitted to the state starting from the initial thresholds of €36,800 and €91,900. 

This takes effect from the first day of the month in which the relevant threshold is exceeded.

If you exceed or approach the revenue thresholds, you will need to consider switching to the real regime.

Rules for New and Growing Businesses

There is no revenue limit in the first year. However, if your revenue exceeds these thresholds in the year following creation (N+1), you must apply the pro-rata rule. If your revenue exceeds the maximum threshold for two consecutive years, you will automatically switch to the real regime as of January 1 of the following year. If your revenue remains above the initial threshold but below the tolerance threshold for two consecutive years, you will need to charge and collect VAT from January 1 of the following year.

Special Considerations for Mixed Activities

For businesses offering both types of activities (services and goods), the total annual income should not exceed €188,700, with service-specific revenue not exceeding €77,700.

These thresholds are considered excluding taxes.

Self-declaration process

Registering as a micro-enterprise involves an online **self-declaration** process via the Guichet Unique website. A scanned copy of an approved identity document (residence permit or passport) must be uploaded at the end of the process.

Businesses of a commercial nature must also register with the **Registre du Commerce et des Sociétés** (RCS).

Certain activities are excluded from the micro-enterprise regime, including real estate trading and specific artistic or scientific professions. A full list is available from local Chambers of Commerce or Trades.

The image features a whimsical, sepia-toned scene where a woman sits at a vintage desk filled with paperwork and a classic computer. She is engaged in the online registration process for a micro-enterprise on an old-fashioned website. Key elements include a passport, a residence permit, and documents labeled “Registre du Commerce et des Sociétés,” emphasizing the business registration context. The setting is richly detailed with hints of artistic and scientific tools, adding depth to the business-oriented theme.
The image depicts a whimsical, sepia-toned office setting. At the center, a character typical of a mid-20th century bureaucrat is handling paperwork with a giant stamp, symbolizing the business registration process. The backdrop features an array of vintage office equipment, including typewriters and filing cabinets, evoking the era of manual business administration. Documents with the words "SIREN" and "SIRET" are prominently displayed, emphasizing the focus on French business registration numbers. The overall aesthetic is nostalgic, blending historical elements with a light-hearted cartoon style.

Business registration - SIREN and SIRET

After self-declaration, an automated receipt is sent by the site, followed by an official receipt from the **Centre de Formalités des Entreprises** (CFE). Once processed, the **business registration number** (SIREN and SIRET) is provided, officially registering the business.

Tax and Social Contributions – “Micro-Fiscal” and “Micro-Social” Options

Simplified Micro-Social System

Auto-entrepreneurs pay social contributions under the ** simplified micro-social** system, based on a percentage of your monthly or quarterly turnover and depending on your business activity. In mainland France and the French overseas territories (excluding Mayotte), the percentages are as follows:

  • 6% for classified furnished tourist accommodation;
  • 12.30% for buying and reselling activities, selling food to be consumed on-site, and accommodation services (BIC);
  • 21.20% for craft and commercial services (BIC), including furnished apartment rentals;
  • 23.10% for non-regulated liberal services (BNC);
  • 23.20% for regulated liberal professions and non-regulated liberal professions affiliated with the Cipav (BNC).

Rates in Mayotte

In Mayotte, these rates are:

  • 8.60% for the sale of goods (BIC);
  • 14.70% for commercial or craft services (BIC);
  • 14.70% for other services and liberal professions (BNC);
  • 4% for classified furnished tourist accommodation;
  • 14.80% for regulated liberal professions affiliated with the Cipav;
  • 4% for classified furnished tourist accommodation affiliated with the Cipav.
 

Micro-Fiscal System for Income Tax

Auto-entrepreneurs can also opt for the simplified micro-fiscal system for income tax, known as the lump-sum payment. Payments are monthly or quarterly based on revenue:

  • 1% for those reselling goods or materials;
  • 1.7% for « commercial » or « industrial » services;
  • 2.2% for liberal professions.

Eligibility and Income Limits

Eligibility is subject to your household’s reference tax income for year N-2. For 2024, the reference tax income in 2022 must not exceed €27,478 per family quotient share. An annual income tax return must be filed, but no other income tax will be due.

Tax Calculation for Non-Eligible Entrepreneurs

When not eligible for the lump-sum payment, an annual income tax return must be filed with the taxable profit determined by the tax authorities. This profit is calculated based on the gross declared revenue minus a flat-rate deduction for professional expenses:

  • 71% for those reselling goods or materials;
  • 50% for other activities under the BIC regime;
  • 34% for liberal professions (BNC).
This sepia-toned illustration captures an auto-entrepreneur meticulously managing tax and social contributions. The scene is set at an antique desk strewn with financial documents highlighting 'Micro-Fiscal' and 'Micro-Social' rates. The entrepreneur, clad in a vintage outfit, calculates figures using an old-fashioned calculator, with a background map of France and its overseas territories subtly emphasizing the geographic variations in tax rates. This image combines historical charm with the complexities of modern entrepreneurship.

Value Added Tax (VAT)

Here is the illustration for the section on "Value Added Tax (VAT)" for auto-entrepreneurs. The image captures an entrepreneur at a vintage desk surrounded by invoices, highlighting the VAT exemption with the specific mention "TVA non applicable article 293 B du CGI". Elements like a meter gauge subtly indicate the critical VAT thresholds of €36,500 and €94,300. This whimsical, sepia-toned scene reflects the historical and bureaucratic aspects of VAT management in a charmingly vintage style.

Navigating VAT Exemptions for Auto-Entrepreneurs

Auto-entrepreneurs do not charge or recover **VAT** below the thresholds of €36,500 and €94,300. The statement “TVA non applicable article 293 B du CGI” must appear on all invoices. 

Since 2020, exceeding these thresholds necessitates the invoicing of VAT from the initial thresholds.

Managing VAT

It is crucial to monitor your revenue thresholds. Exceeding the tolerance thresholds without realizing it may result in retroactive VAT liability, leading to significant financial burdens as VAT must be charged from the first day of exceeding the threshold.

Here is the illustration for the section "Managing VAT". It visually captures the concept of an auto-entrepreneur anxiously monitoring revenue thresholds, with a large, vintage gauge indicating the critical limits. The setting is an old office, filled with financial documents and charts, enhancing the tension of potentially exceeding VAT thresholds. This whimsical, sepia-toned scene effectively conveys the importance of vigilant financial management for auto-entrepreneurs.
Here is the illustration for the section "Professional Tax and Bookkeeping". It visually represents an auto-entrepreneur engaged in meticulous financial management. The scene features the entrepreneur at a vintage desk filled with invoices, receipts, and a ledger, highlighting the importance of keeping detailed records for business transactions. This whimsical, sepia-toned image brings a sense of diligence and the necessity of proper bookkeeping in a charmingly old-fashioned office setting.

Professional Tax and Bookkeeping

Exempt from **professional tax** in the first year, auto-entrepreneurs must keep a record of all received revenues. Auto-entrepreneurs reselling goods or materials or providing furnished accommodation must also record all professional expenses. Copies of invoices, receipts and formal quotes must be kept. Where revenue exceeds the tolerance thresholds during the year, regulated accounting software is necessary for VAT-invoiced revenue.

Social Contributions in France

The French social protection system, established in 1945, is based on national solidarity. Contributions finance social rights proportional to business revenue. 

Contributions cover:

  • health expenses;
  • family benefits;
  • retirement pensions;
  • specific contributions like CSG and CRDS.
 

Paying social contributions ensures comprehensive protection including healthcare, pensions and other social benefits. Regular payment of these contributions is crucial to fully benefit from the rights they offer.

Here is the illustration for the section "What are Social Contributions for in France?" The image depicts an auto-entrepreneur in a serene French café setting, calculating social contributions, surrounded by symbols representing the French social protection system like health, family benefits, and pensions. The atmosphere conveys a sense of community and national solidarity, enhancing the understanding of the importance of social contributions in France.

Social Contributions in the United States, the United Kingdom and France

Here is the illustration representing social contributions in the United States, the United Kingdom, and France. The image is divided into three distinct sections, each depicting a unique setting corresponding to each country, with visual elements that highlight their approaches to social contributions. This whimsical, sepia-toned portrayal captures the cultural and systemic differences effectively.

United States, the social security system

In the United States, the social security system is funded by contributions called FICA (Federal Insurance Contributions Act), which includes Social Security and Medicare. Workers pay 6.2% of their salary for Social Security and 1.45% for Medicare, with an equal contribution from the employer. Self-employed individuals pay both shares, which is 12.4% for Social Security and 2.9% for Medicare.

United Kingdom, social security contributions

In the United Kingdom, social security contributions are called National Insurance Contributions (NIC). Employees pay a class of NIC based on their income, with a rate of 12% for income between £242 and £967 per week, and 2% for income above this threshold. Self-employed individuals pay Class 2 and Class 4 contributions based on their annual profits.

France, the French security social

In France, social contributions are divided among health insurance, retirement, family benefits and other specific contributions. The rates vary according to the auto-entrepreneur’s activity, ranging from 12.30% to 23.20% of turnover in mainland France.

For liberal professions created since 2018 and not under Cipav, domiciled in mainland France, the adjustment of rates is progressive over two years.

  • As of January 1, 2025, the “Other service provision” rate will be 24.6%;
  • As of January 1, 2026, the “Other service provision” rate will be 26.1%.

If you are domiciled in the French overseas territories (such as Réunion, Guadeloupe, Martinique, or Guyana), the full social contribution rates for all service provisions (BNC) will be 16.4% as of January 1, 2025, and 17.4% as of January 1, 2026.

Support in English for Business Creation

If you are not comfortable with French and wish to start a business, Les Plumes Fantastiques offers individual training sessions in English. These sessions are conducted by Kathryn Smyth, originally from Northern Ireland, who will perfectly guide you through discovering the French system and how it works.

We also offer individual appointments of one or two hours to support you step-by-step in your entrepreneurial project. The rate is 70 euros per hour.

Do not hesitate to contact us for more information or to schedule your personalized training session.

Please note that due to her other professional commitments, Kathryn is committed to scheduling appointments within 15 business days. She will do her best to respond to your requests promptly, but a shorter timeframe is not always guaranteed. If your request is very urgent, the appointment can be conducted in French with Frédérique or in English, although English is not her native language. 

Kathryn, on the other hand, is a native English speaker. We appreciate your understanding.

Support in English for Business Creation," featuring Kathryn Smyth conducting a virtual business training session. The setting is cozy and professional, with Kathryn at her desk engaging with a client over a computer, surrounded by books and elements that symbolize the French business system. This image captures the personalized support offered by Les Plumes Fantastiques.

Book your individual training session