How to Become an Auto-Entrepreneur in France

Many people dream of living and working in France, and while I was right there with you when I first got here, I know that I had a tendency to put the logistical side of everything on the back burner. Thinking about taxes and the like just didn’t fit into my Midnight in Paris vision of what I wanted my life to be like here. 

I was soon brought back down to reality when I finally got settled into my new post-master’s-degree life. I had already been in France for some time at that point, but I worked as an au pair (the family I worked for paid taxes on me), and after I was a full-time student (I traded English lessons for my apartment and took other odd jobs to make a little cash on the side). I knew I wanted to pursue freelance writing as a career, but I was unsure how to do so legally (plus how to get the benefits that I knew came from paying taxes here). 

I was soon introduced to the concept of the auto-entrepreneur. There is no literal translation for the term, but it should be understood as a one-person business. If you’ve also seen the term micro-entrepreneur floating around, it’s because in 2016 the French government officially changed the term from “auto” to micro-entrepreneur. However, although it’s been officially changed for five years now, most people continue to call it the latter and even the website you’ll use to open your business and pay your social charges features the word auto-entrepreneur. That’s France for you!

Similar to the 1040 freelancer tax status in the United States, opening your own one-person business is a great way to freelance legally in France. If you have a valid residence permit that permits you to work in France (sorry Visitor visa holders!), you’re eligible. When I got started myself, I found the process confusing and so I created this guide to help anyone else who may be in the same position.

Registering as an Auto-entrepreneur

I want to clarify one more time that the terms auto-entreprise and micro-entreprise are one and the same, and both signify a one-person business in France. Once you open your business, you become an auto, or micro, entrepreneur. There are a few different ways to open your business:

  • In-person, at the Centre de Formalités des Entreprises (CFE) closest to your residence (a quick Google search will help you determine which one).
  • By mail, but filling out the form on this website (click on accéder au formulaire) and sending it to the correct CFE.
  • Online, by visiting this website.

I recommend you do the online option unless you’re eager to practice your French or use your printer and pay for postage. Once you visit the website, follow these instructions:

  1. The first question is asking if you are already an “independent worker,” which is yet another term for auto-entrepreneur. You are allowed to have up to two small businesses, but if you’re reading this how-to article I’m assuming you don’t have one already! Check the box that says “non.” Then, click the button that says “déclarer mon auto-entreprise.” 
  2. You’ll be asked to create an account, which you’ll need to pay your social charges, and to have access to any sort of information related to your new small business. Fill in your personal information and then click on “créer mon compte.” You’ll have to confirm your email address and then sign in to your new account before you can move on to the next step.
  3. Once you’ve signed in, you’ll see a message at the top of the page asking you to complete the process to create your small business (Pour effectuer votre formalité…). Click on it.
  4. You can now finally get down to business. Fill in the necessary information, including what you plan on doing, when you want to start, and some other questions. The nice thing about the process (which didn’t exist when I opened my small business) is the small question marks next to each step that you can click on if you’re confused. 
  5. Below is a screenshot for reference, of what I would put if I were to sign up for a small business for freelance writing:
  6. Click on “Suivant.” Here, you’ll be required to fill in your personal information like your address, date of birth, and the like. You’ll also need to put your nationality, and here you’ll be prompted to put in your residency permit number.
  7. Click on “Suivant.” This next section has to do with your marital status and your monthly social charges. If you already have a social security number you can put it here, otherwise, click on the box that says “Ce numéro ne m’a jamais été attribué.” You’ll be able to choose the frequency of your social charge payments. I personally prefer monthly payments, but you can also opt to pay each trimester. There is also the option to pay your yearly taxes at the same time as your monthly social charges. Again, this is all preference! If you’d like to separate yourself legally from your business (similar to an LLC in the US), check “oui” next to the option to become an EIRL. 
  8. Click on “Suivant.” You’ll want to check “non” for the first question as you’re creating the business for yourself. Check “oui” for the second question, you’ll need the SIRENE for your future business dealings!
  9. Click on “Suivant.” You’ll be brought to a summary of all of the information that you’ve filled in so far. Review it and edit if necessary. 
  10. Click on “Suivant.” Here you’ll be required to upload a copy of your ID and your valid residency permit. This next part is a bit tedious, but you’ll have to scan and print out your documents and sign with the words, “J’atteste sur l’honneur que cette pièce d’identité est conforme à l’original,” Plus, “Fait à … le …” with your location as well as the date. Then, re-scan this document and upload it onto the site. Make sure you click on “Joindre le fichier” after you’ve selected the document from your computer. You should then see it below like this:
  11. Click on “Suivant.” You’ll be taken to a confirmation page with the option of downloading your application and I recommend that you do so for your own records! If you followed the steps above, you should receive a confirmation letter from INSEE, the institute responsible for managing all small businesses in France. In the letter is your SIRET, which is the ID number assigned to your business. You’ll be required to put that number on any invoices you send to your future clients!

Paying Your Social Charges as an Auto-entrepreneur

Now that you’ve set up your new small business in France the next step is to start working! I wanted to include a note on paying your charges. Whether you opt for monthly payments or each trimester, you need to stay on top of them to avoid paying late fees. You can use the same website that you used to create your business to tell the French government how much money you made and to pay the social charges based on how much you earned. 

  1. Sign in to your account. You’ll be brought to the homepage:
  2. Under “Déclarer et payer” click on “mes échéances en cours.” You’ll see a red “1” if you haven’t filled yours out yet (like me, as of writing this article!). Click on the month that you need to pay. Here you’ll fill out your earnings. There are different categories depending on what your small business does. If you offer a service, such as writing, put your income in the first box. If you make things, like pastries, for example, put how much you took in as a salary in the second box, and in the third box how much money you made from actually selling the pastries. 
  3. Click on “Suivant.” You’ll see here how much you owe the government. As a small business owner in France, you’re required to pay about 23% of your income to social charges. This is the price of advantages like low-cost health care and other such benefits. Click on “Valider” to confirm that you agree with the amount.
  4. Here you can enter your bank information if you haven’t already. I usually click on “Payer via ce mandat” right away so that it’s taken care of. You won’t see it deducted from your account until the beginning of the next month.

Congratulations, you’re officially a small business owner in France!

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Auto-Entrepreneur: A Tax Classification, Not a Visa Status

On more than one occasion I’ve gotten emails from people who use “auto-entrepreneur” and “profession libérale” interchangeably.  They aren’t interchangeable, and more importantly for readers of this blog, auto-entrepreneur is not a visa status.  It’s a tax classification, and not necessarily a desirable one at that.

How Did It Start?

In 2009 President Sarkozy created “auto-entrepreneur” as a simple way for French people (and foreign nationals) to start small businesses.  With a ceiling of 32,900 €/year of topline revenue, it was seen as a liberalizing measure, without committing to full Anglo-Saxon soul destruction.  You would pay your social charges “as you go” which meant if you had no sales, there were no charges, and if you went two years without earning anything, you would simply automatically lose the classification with no penalty. This allowed holders of the status to try starting a small business “risk-free” in tax terms, and potentially add on an additional stream of revenue without onerous accounting burdens.

The regime is actually now called “micro-entrepreneur” and you are said to be running a “micro-entreprise” if you use this tax classification.  In American terms this is a sole proprietorship, meaning you have unlimited legal liability should problems result.

Confusion

There’s a lot of bad advice on the internet and so on more than one occasion people have registered for auto-entrepreneur while on Visitor visas, thinking that they had found a legal way to work in France, not realizing that the regime that allows you to register and get a SIRET (what Americans know as an EIN employer identification number) isn’t connected with OFII so they aren’t equipped to validate whether you’re eligible to register.  You just have to supply some basic info and then you can get a number.  But this has led to tears on more than one occasion when someone showed up to renew their visitor visa with auto-entrepreneur earnings on their bank statements and a SIRET they shouldn’t have had.  Visa renewal denied, eligibility to live in France ended, and the process of living in France had to begin all over again, back in their home countries.

Furthermore, President Macron raised the limit that micro-enterprises could earn to 70,000 €, but most people don’t know that the minute you go over 33,100 € you are subject to VAT (as I outlined here), no matter what your tax classification is.  Goodbye simple accounting, hello nightmare exchanges with URSSAF and the Department of Finance.

So…

So, if you want to have a business in France, make sure you have the correct visa for it, or that your CDI allows for it.  For some foreigners here on a salarié work visa, their contract specifically prohibits their starting a business under the micro-entrepreneur classification.  If you’re here as a Visitor, you are ineligible to apply for this classification.  I know that there’s nothing on the internet that seems to say this, but it’s just a simple fact: if you don’t have a visa allowing you to work, going to a website and clicking a few buttons isn’t a magical fix.  This relates back to something I’ve said before: no one from French immigration ever tells you that as a visitor you have to file taxes in France even though you aren’t paying taxes in France.  Remember, in immigration in general and in France in particular, if it seems too good to be true, it is.  Always double and triple-check before you make a major decision regarding these issues.

If you want to start a small business in France, profession libérale remains the simplest route, with many options to change if your business becomes really successful, and zero requirement to register as a micro-entrepreneur at any stage whatsoever.

Photo by slon_dot_pics from Pexels

TAIP is 100% reader-supported through tipping. If you want to leave us a tip of any amount it would be highly appreciated. These tips help support our efforts to keep TAIP an ad-free environment. Just as at a cafe, the tips are split evenly among the team.