Micro-entreprise or Auto-entrepreneur status

Who can't become Micro-entreprise

Despite the great flexibility, the status Micro-entreprise, however, remains incompatible with certain types of activities:

• Activities related to the MSA (Social Security Agricultural) welfare system.
• Regulated liberal professions not covered by the Cipav pension fund;
• Activities subject to real estate tax.
• Activities of artists falling under the umbrella of the Maison des artistes or Agessa association.
• Activities of the majority manager of the company (gérant majoritaire ou en collège de gérance).
• Merging with an already registered activity with status Micro-entrepreneur.

TO regulated professions include Professions Liberals, such as:

• Notaries,
• doctors,
• lawyers,
• insurance agents, etc.

How to get Micro-entreprise status

You can do this yourself. For this you need fill out the form on the website https://www.autoentrepreneur.urssaf.fr/portail/accueil.html and attach the necessary documents to it: residence permit or passport.

Read more in the article...

Tax benefits for Micro-entreprise

Until January 1, 2018 Auto-entrepreneur automatically used the franchise for TVA (VAT). With the doubling of the turnover threshold, everything has changed: under certain conditions, a self-employed person is obliged to submit VAT.

You can qualify for a franchise if your turnover does not exceed the following thresholds:

• €34,400 for consultations, commercial and craft services - full exemption, €36,500 - excess threshold.
• €85,800 for the sale of goods/sale of food/rent of housing - full exemption. 94,300 € is the threshold for exceeding.

Let's look at how this works using an example for an entrepreneur who provides consulting:

• Its turnover is €30,000: it is exempt from VAT.
• His turnover is €35,000 how it works: he is exempt from VAT, but if he exceeds the basic threshold for the second year in a row, in which case he will have to issue a VAT invoice from 1 January.
• His turnover is 40,000€: from the month in which he exceeds the increased threshold (36,500€), he must issue a TVA. Next year it will also charge TVA on the first euro charged.

The annual turnover ceiling in 2022 should not exceed:

• 72,600€ for consultations, commercial and craft services,
• 176,200€ for the sale of goods/sale of food/rent of housing.

Taxes For Micro-entreprise

System taxation auto-entrepreneur the simplest of all possible in France, but it also causes confusion.

All Auto-entrepreneur turnover is taxable social tax. It amounts to:

• Purchase and sale – 13%;
• service sector – 22.5%.

Attention! When calculating social tax for purchases and sales, you cannot write off expenses for the purchase of goods from turnover (tax base).

To write off expenses, you should register either EI (Entreprise Individuel) or a legal company SARL, EURL, SAS, SASU.

In addition to paying social tax, you must declare and pay progressive income tax.

But here the Auto-entrepreneur can choose to write off his professional expenses at a flat rate or apply a simplified system.

Is it possible to hire employees if you have status Micro-entreprise

With this status, you can hire employees, but this will not be profitable for you, since in the Micro-Entreprise status you will not be able to write off the wages of your employees for tax purposes. In this case, it is better for you to switch to a real form of taxation as an individual entrepreneur or create a company with the status of a legal entity.

Unemployment benefit For Auto-entrepreneur

From November 1, 2019 Micro-entreprise, like other entrepreneurs, are entitled to receive unemployment benefits if they stop working, this is called independent worker benefits (ATI). Details on link.

Is the Auto-entrepreneur status suitable for obtaining a residence permit?

If you do not have French citizenship, then to obtain Micro-entreprise status you must have at least EU citizenship or a residence permit with permission to work and conduct business.

Income protection for Auto-entrepreneur

If you have a status Aito-entrepreneur, then you should take care of your future pension and financial protection in case of illness or accident.

To do this, you can sign up for a consultation with me, during which: 

• I will tell you in detail what rights and guarantees you have from Sécurité Social, 
• together we will determine your needs and financial goals,
• I will select solutions tailored to your situation.

Help for individual entrepreneurs