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Micro-entrepreneur: How to set up as a small business in France

The Local France
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Micro-entrepreneur: How to set up as a small business in France
Photo: 1Tomm/Depositphotos

In an attempt to boost new businesses and start-ups, France has a special status known as 'micro-entrepreneur'. Here's how it works, from someone who has experience in going through the process.

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The micro-entrepreneur status (formerly known an auto-entrepreneur) is intended for people starting out a business in a small way or operating a freelancer. It gives you a simplified structure for taxes and employment rules, and if your business later takes off and you go over the earning threshold you can simply re-register the business.

But like everything in France, setting yourself up under this regime involves a fair amount of paperwork and patience.

We asked micro-entrepreneur Claire Trévien,  a freelance content marketer based in Quimper in Brittany, for her tips on the process:

Check that you are eligible

There are different rules depending on what your business is, and which Chamber you fall under (commercial/industrial, artisanal, or liberal profession).

Finance companies, hire companies and estate agents are some of the jobs excluded from micro-entrepreneur status.

Your yearly earning should not exceed €180,000 for those re-selling goods or materials (micro-BIC) and €77,000 for those offering services (micro-BNC).

READ ALSO How does France's auto entrepreneur system work?

 

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Why would I want to be an micro entrepreneur?

It's still definitely better to be salaried in France, but if you're self-employed and starting out, being an micro-entrepreneur is the best option as it's simplified to the max.

There are fixed reductions for income taxes and it is also quick to set up and easy to close down or modify your business.

READ ALSO The drawbacks of France's auto entrepreneur system

Complete the declaration for micro-entrepreneur status

You can sign up to be a micro entrepreneur online with a declaration.

This can also be done in person at the Centre de Formalités des Entreprises (CFE) or by posting the Micro-entrepreneur Déclaration de Début d’Activité form to the CFE.

Make sure you can have a scanned copy of an approved piece of ID (carte de séjour residency card or passport) when completing the self-declaration via the internet.

Once the declaration has been processed, you will then receive your unique business registration number (SIREN and SIRET).

This number is important as it proves you are a legally registered French business, listed on the national business directory.

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Claire Trévien is a freelance content marketer based in Quimper, France. Photo : Claire Trévien

Consider enlisting the services of a hand holder

I took a shortcut to signing up and enlisted the services of a hand-holder, a person who does the bureaucratic legwork for you to help you set up things.

I figured it’d save me a lot of time and hassle and it did, as she not only registered me but also set me up to receive my carte vitale for my healthcare.

You might also consider going with a portage company, where you pay a higher percentage of your earnings but also get a lot of support and resources, and the benefits of being treated like a salaried employee whilst developing your business.

Of course you do have to pay for this service.

Set up a separate bank account

I already had a French bank account but if you are a micro entrepreneur you need a separate one for your business (though it can still be a personal one).

Opening a new bank account was a bit of a struggle at first as they wanted me to have papers that I didn’t have - a French tax return for example.

That’s a pretty recurring theme, a lot of bureaucracy. It can be a lot less painful if you have a personal connection.

You’ll also have to decide whether you declare your earnings every month or every three months.

READ ALSO Is my work 'genuine and effective' enough for me to stay in France?

Network to help your business grow

Don’t underestimate the power of a network for everything. It’s particularly the case here in Brittany, perhaps less so in bigger towns.

The biggest challenge for me is that I’m an introverted digital person who hates talking on the phone and isn’t a great fan of networking. 

Unfortunately, the way to do business in my part of Brittany is completely dependent on phones and networking, so I’ve had to adapt!

The human connection is everything - so go out, meet people, support other freelancers!

It’s also really worth being a part of Facebook groups dedicated to being an auto entrepreneur (several exist for English speakers) as they give you advice.

Claire's work includes project managing new websites, creating social media strategies and helping businesses grow. Recently, she also opened up a coworking space called L’Atelier Corail.

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Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.

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Anonymous 2021/01/26 18:04
*side hustle
Anonymous 2021/01/26 18:04
Hi, do you need to register for entrepreneur status if your business is a side huddle? For example, a salaried employee with an Etsy shop? Thank you!

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