Auto Entrepreneur is Good News for the Self-Employed

There are good reasons for the self-employed, and for those wishing to start a business in France, to celebrate the great news that, as of January 2009, France introduced changes to the self-employment system. The system, called ‘auto-entrepreneur,’ will make it easier, quicker, and cheaper for individuals to start up a small business in France.

Turnover Limits for Small Businesses

Under the auto-entrepreneur system, turnover limits are €188,700 for commerce businesses and €77,700 for service-based companies (2023-2025). Social charges, however, will be much more affordable. Businesses engaged in commercial activities should expect to pay 13.3% of their annual turnover in social charges and taxes, while service-based businesses will pay 22.90%.

Incentives for New Businesses

The main highlights of the auto-entrepreneur system are that newly registered individuals will be exempt from paying the ‘taxe professionnelle’ for the first 3 years and that social charges or taxes will not be payable until the new business starts generating sales.

Simplified Registration Process

Registering for the auto-entrepreneur system is much simpler. There are no courses to attend and no registration fees. You need to visit your local Chambre de Commerce or Chambre de Métiers and fill out a form.

Understanding SIRET and SIREN Numbers

You may also want to learn about a SIRET (or SIREN) number, and how to get one.