July 5, 2017 by Crescentine
Do you want to quit that 9 to 5 job and follow your dream of becoming a business owner? Are you also ready to take the entrepreneurial plunge but not quite ready to put all your eggs in one basket? Expressions aside, if you said yes to one or both questions then registering as a microentrepreneur in France is for you!
It’s a low-risk way of starting your business, getting the ball rolling and testing the waters before you make any major investments. You can register your micro-enterprise online in the comforts of your home in France! Ahh quelle bonheur!
Microentrepreneur is the new term for autoentrepreneurs in France. Most people who engage in small-scale independent work whether service providers, manufacturers or product vendors normally start as micro-entrepreneurs. Read more about it HERE.
What are the advantages of being a micro-entrepreneur?
- Low financial risks – earn nothing, pay nothing in taxes
- No required initial investment or capital
- Reduced taxes and fees (Total of 25% of your gross revenue instead of 40%+)
- You do not need to charge TVA (VAT) to your clients and customers
- No official accountant needed. Simply keep track of your invoices and receipts.
- Online registration and declaration of turnover whether monthly or trimester.
- Quick registration time of two weeks
- You can be employed and be a micro-entrepreneur at the same time
What are the disadvantages of being a micro-entrepreneur?
- There is a gross revenue ceiling imposed. EUR 82,800 for product vendors and EUR 33,200 for all other types of professions. It’s not much but it’s a start!
- If you are solely a micro-entrepreneur, you will be under the RSI (Régime Social des Indépendants) instead of the CPAM (Caisse primaire d’assurance maladie)
- If you are solely a micro-entrepreneur, reduced benefits such as no allocation chomage (unemployment aid) or arrêt de travail (long duration sick leave) from Pôle Emploi and less money allocated for retraite (retirement plan)
- If you are solely a micro-entrepreneur, you must get and pay for your own mutuelle (health insurance) as you have no employer to provide it for you. It is also recommended that you get a plan for prévoyance (accident insurance) and possibly, another plan to complement your retraite.
Now that you know what you’re getting into. How does one become a micro-entrepreneur in France?
Note that in order to be eligible to be a micro-entrepreneur, you must have a long stay visa (which states that you are eligible to work in France) validated by the OFII. The number on the validation stamp will be required for the registration process.
Well, it’s easy! Follow my step-by-step instructions:
- Visit this website by clicking HERE.
- Prepare your scanned ID by following this example.
- Go to this website, accomplish the form and send!
- A confirmation e-mail will be sent to you and the Centre de Formalites Des Entreprises will review your application.
- If your application is approved, they will register your business following the information given to them on the registration form.
- After two weeks, you will receive all the official documents relevant to your business and it will be a LOT of paper from the following organizations:
- RSI for your carte vitale
- Agirc et Arrco
- Insee for your business registration certificate, SIREN and SIRET (business numbers)
- Net-Entreprises.fr for your tax declarations
Et voilà! You are officially a proud business owner. Using your SIRET number, you can now register on Net-Entreprises.fr by clicking on S’inscrire to register and then clicking on Déclarez et payez to pay your taxes and fees following the declaration schedule you chose.
*Some things to note:
- Even if you don’t earn a single cent, you must declare this on the website following the schedule you chose (monthly or trimester). Otherwise you will be penalized!
- After two years of declaring zero revenue, your microentrepreneur status will be revoked.
- If you go above the profit ceiling, you will be required to register as an Entreprise Individuelle (Sole Proprietorship) in which you will have to pay the full tax % and submit to all requirements of that status.
Bon courage! :*