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 choose the self-employment system.

The ‘auto-entrepreneur’ system makes it easier, quicker, and cheaper for individuals to start and set up a small business in France. Here’s what you need to know if you are thinking about starting a business in 2026.

Turnover Limits for Small Businesses 2026-2028

Under the auto-entrepreneur system, turnover limits are €203,100 for commercial businesses and €83,600 for service-based companies for 2026-2028. 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%.

The social contribution rates (cotisations sociales) applicable in 2026 are structured as follows:

Commercial Activities (Achat/Revente)

• Social Contributions Only: 12.30% of annual turnover.
• With the Fiscal Option, the versement libératoire, a fixed income-tax percentage of turnover—adds 1%, bringing social contributions and income tax to 13.30%.

Service-Based Businesses (Prestations de Services)

The applicable rate depends on whether the activity is classified under the BIC regime for commercial and craft services or the BNC regime for liberal professions:

• Commercial and Craft Services (BIC): Social contributions are 21.20%, rising to 22.90% with the 1.7% versement libératoire charge.
• Liberal Professions and Other Services (BNC): Social contributions are 25.60% following gradual increases to strengthen supplementary pension entitlements. The 2.2% versement libératoire income tax charge raises the total to 27.80%.

Micro-Entrepreneur vs Auto-Entrepreneur: What’s the Difference?

Following recent regulatory changes, this distinction still raises questions. In 2026, although the term “auto-entrepreneur” is still widely used in everyday language, the scheme is now officially known as the “micro-entrepreneur” scheme.

This harmonisation was intended to combine the benefits of the two legal statuses and avoid confusion. So today, it is one and the same scheme.

Since the regimes were harmonised, micro-entrepreneurs have been entitled to the following:

• the micro-social scheme
• the micro-tax scheme
• the flat-rate tax option (versement libératoire), depending on the micro-entrepreneur’s income and business activity
• simplified business registration formalities
• VAT exemption, subject to certain conditions

Incentives for New Businesses

One of the main highlights of the auto-entrepreneur (or micro-entrepreneur) system is that newly registered individuals are exempt from paying the ‘CFE (Cotisation Foncière des Entreprises)’ for the first year, and that social charges or taxes are not payable until the new business starts generating sales, regardless of the turnover.

Starting in your second calendar year, you must pay CFE unless your annual turnover is below €5,000, in which case you remain permanently exempt.

But one of the most significant financial incentives is ACRE (Aide à la Création or Reprise d’Entreprise), not the CFE exemption. If you qualify (e.g., job seekers, young people under 26), ACRE cuts your social charges by 50% for your first four quarters of activity.

Resources for Auto-Entrepreneurs in France

To submit an ACRE request or access your account, please use the official Auto-entrepreneur Urssaf website. For a broader overview of the program and national guidelines, please consult the French government’s business website, Service-Public Entreprendre. Finally, visit our blog to learn more about Urssaf.

Simplified Registration Process

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

Understanding SIRET and SIREN Numbers

Finally, if you don’t already know, you may want to learn about the SIRET (or SIREN) number, or a Kbis in France, and how to get them. And don’t forget to consider professional insurance for your new business.

Bonne chance!