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The company got off to a rocky start when it launched in 2008; micro entrepreneur Status (later called) car entrepreneur) have become part of French working life.
It’s hard to remember exactly how revolutionary it was at a time when almost all of the nation’s efforts were focused on promoting salaried employment.
Non-salaried people, including many doctors and plumbers, had to register with trade associations and associations. Chambre de Commercefill out multiple forms, pay a fee and the work will be authorized.
Hiring an accountant for €1,000 a year to prepare tax returns was an additional financial burden.
Read more: French self-employed workers get new law to protect their homes if business fails
What are the benefits of registering as micro entrepreneur?
The simplified procedure is micro entrepreneur The demands are much lower.
The advantages of this system are:
- You can start a business as a sole proprietorship under your own name.
- You do not need to register for VAT if you are a vendor with a turnover of less than €91,900 or if you provide services with an income of less than €36,800.
- It is a simple accounting procedure that can be done at home and is unlikely to be challenged by the authorities.
- Easily declare your health, retirement, and other obligations monthly or quarterly to Urssaf
- There are flat rate tax deductions of 34% for free occupations, 50% for service and artisans, and 71% for trade, eliminating the need to calculate “actual” expenses for deductions each year.
- Be a member of the French social security system, which has almost the same rights as salaried employees.
- Sick pay if you earn between €4,162 and €43,992 (2023 figures)
Read more: Explained: Which self-employment visa do I need to live and work in France?
What are the disadvantages of being micro entrepreneur?
However, this system also has some flaws:
- You’re still missing out on some of the perks that salaried workers have, like meal vouchers and health insurance.
- Retirement benefits are not as good as salaried employees and contributions are high
- Banks may be cautious about lending to: micro entrepreneurand typically asks to see four years of tax returns
- Supplementary health insurance contract (Mutuel) is about one-third higher than that of salaried workers.
- Expenses cannot be deducted. Not ideal if you have employees or rent facilities.
- Although simplified, remnants of the old bureaucracy remain. micro entrepreneur The latest online registration form takes approximately 90 minutes to fill out and the final question asks if you are a professional fisherman (Marine Pecheur)
- Compulsory social security contributions are at least 16% of income, plus income tax
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