Becoming self-employed in France is a popular choice for freelancers, small business owners, and remote workers due to the country’s supportive legal framework and relatively straightforward registration process. One of the most accessible options for self-employment is the auto-entrepreneur status, which was introduced in 2009 to simplify entrepreneurship and reduce administrative burdens.
The auto-entrepreneur regime is particularly appealing because it offers simplified tax and social contribution systems, making it ideal for individuals starting out or running small-scale businesses. In this guide, we’ll walk you through the steps to register as an auto-entrepreneur in France, along with key considerations and tips for success.
1. What is the Auto-Entrepreneur Status?
The auto-entrepreneur status is a simplified form of self-employment designed for freelancers, artisans, consultants, and small-scale entrepreneurs. It allows you to operate your business without the complexities associated with traditional company structures like SARL (Limited Liability Company) or SAS (Simplified Joint Stock Company).
Key Features:
- Simplified Tax System: Taxes are calculated based on your turnover (revenue), not profits.
- Social Contributions: Social security contributions are proportional to your income and paid monthly or quarterly.
- Turnover Limits: There are annual revenue caps depending on your activity type:
- €77,700 for commercial and retail activities (as of 2023).
- €42,600 for service-based and liberal professions (as of 2023).
- No Separate Business Bank Account Required: You can use your personal bank account for business transactions, though opening a dedicated account is recommended for better financial management.
2. Who Can Register as an Auto-Entrepreneur?
The auto-entrepreneur status is open to:
- French Residents: Including EU/EEA citizens living in France.
- Non-EU/EEA Nationals: If you hold a valid residency permit allowing professional activity (e.g., carte de séjour professionnel ).
- Remote Workers and Freelancers: Ideal for digital nomads, writers, designers, consultants, and other independent professionals.
- Artisans and Small Traders: Such as handymen, bakers, or local shopkeepers.
3. Steps to Register as an Auto-Entrepreneur
Step 1: Choose Your Business Activity
Before registering, determine the nature of your business activity. Activities fall into two main categories:
- Commercial (Commerce): Selling goods or products.
- Service-Based (Services): Providing services such as consulting, coaching, or creative work.
Your chosen activity will affect the tax rates and turnover limits applicable to your business.
Step 2: Gather Required Documents
To register, you’ll need the following:
- Proof of Identity: Passport or national ID card.
- Proof of Address: A utility bill, rental agreement, or bank statement showing your French address.
- Tax Identification Number (Numéro fiscal): Obtainable from the French tax office (Impôts ).
- Social Security Number (Numéro de Sécurité Sociale): If you’re already registered in France.
- Professional Qualifications (if applicable): For regulated professions like healthcare or education.
Step 3: Complete the Registration Process
There are two ways to register as an auto-entrepreneur:
Option 1: Online Registration via the Official Portal
The easiest method is to register online through the official government website:
- Visit https://www.autoentrepreneur.urssaf.fr .
- Create an account and follow the step-by-step instructions.
- Provide details about your business activity, contact information, and banking preferences.
- Pay the registration fee (approximately €25–€50, depending on your activity).
Option 2: Paper Application
If you prefer offline registration, download the appropriate form (Formulaire P0 Micro-Entrepreneur ) from the URSSAF website and mail it to your local Chamber of Commerce (Chambre de Commerce et d’Industrie , CCI) or Chamber of Trades (Chambre des Métiers et de l’Artisanat , CMA), depending on your activity.
Step 4: Receive Your SIRET Number
Once your application is processed (usually within 1–2 weeks), you’ll receive:
- SIREN Number: A unique 9-digit identifier for your business.
- SIRET Number: A 14-digit number combining your SIREN and location code.
- APE Code: A classification code indicating your business activity.
These numbers are essential for invoicing clients, filing taxes, and accessing public services.
4. Understanding Taxes and Contributions
One of the advantages of the auto-entrepreneur status is its simplified tax and contribution system. Here’s how it works:
Income Tax
- Income tax is included in your social contributions and calculated as a percentage of your turnover:
- Commercial Activities: 1.7% of revenue.
- Service Activities: 2.2% of revenue.
- Liberal Professions: 2.2% of revenue.
Social Contributions
- Social security contributions are also based on your turnover:
- Commercial Activities: 12.8% of revenue.
- Service Activities: 22% of revenue.
- Liberal Professions: 22% of revenue.
Contributions are paid monthly or quarterly, depending on your preference during registration.
5. Obligations and Compliance
As an auto-entrepreneur, you have certain responsibilities:
- Declare Your Revenue Regularly: Submit monthly or quarterly declarations of your turnover, even if you earned nothing during that period.
- Pay Contributions on Time: Late payments may result in penalties or loss of benefits.
- Maintain Records: Keep track of invoices, expenses, and receipts for accounting purposes.
- Respect Turnover Limits: Exceeding the revenue thresholds requires switching to a different business structure.
6. Advantages of Being an Auto-Entrepreneur
- Ease of Setup: Minimal paperwork and low startup costs.
- Flexibility: Ideal for part-time or full-time ventures.
- No Double Taxation: Unlike traditional companies, you’re taxed only once on your revenue.
- Access to Benefits: Eligible for health insurance, retirement pensions, and unemployment benefits after meeting contribution requirements.
7. Limitations to Consider
While the auto-entrepreneur status is convenient, it may not suit everyone:
- Revenue Caps: High earners or those planning significant growth may need a more robust structure.
- Limited Deductions: Expenses cannot be deducted from taxable income, unlike traditional businesses.
- No Employees Allowed: Hiring staff isn’t permitted under this regime; consider switching to a micro-enterprise or SARL if needed.
8. Tips for Success as an Auto-Entrepreneur
- Plan Ahead: Set realistic goals and budget for taxes and contributions.
- Separate Finances: Open a separate bank account for your business to simplify accounting.
- Network Locally: Join expat groups, coworking spaces, or industry-specific associations to expand your client base.
- Stay Compliant: Keep up with deadlines for declarations and payments to avoid fines.
- Upgrade When Necessary: Transition to a more advanced business model if your needs evolve.
