How do I become an auto-entrepreneur?

There are many reasons why professionals decide to become auto-entrepreneurs: to start a business, to supplement their income or to set up on their own. Despite the simplicity of becoming an auto-entrepreneur, there are some legal subtleties you need to be aware of in order to successfully complete your project.

From definition to choice of registered office, the SeDomicilier team takes you through 9 key stages of auto-entrepreneurship!

What is an auto-entrepreneur?

DEFINITION

Theauto-entrepreneur scheme applies to individuals creating or owning a sole proprietorship in order to carry out their activity (commercial, liberal or craft). Although they differ in several respects,auto-entrepreneurs are basically the same as sole proprietors, benefiting from a streamlined status and a simplified version of thesole proprietorship system.

What's the difference between auto-entrepreneur and micro-entrepreneur?

A simplified version of the micro-entrepreneur scheme,auto-entrepreneur is very similar, except for the payment of social security contributions. Under theauto-entrepreneur scheme, social security contributions are calculated on the basis of sales, whereas a minimum threshold is set for the micro-entrepreneur scheme. This means thatauto-entrepreneurs are exempt from social security contributions if their sales are zero.

How to declare your business?

The declaration of activity is made using the Cerfa P0 Auto-Entrepreneur form available online, the completed version of which must be sent to the Centre de Formalité des Entreprises (CFE). However, you can also contact your nearest CFE to fill in the form on site. The declaration is made to the Chamber of Commerce and Industry (CCI) if the activity is commercial, to the Chamber of Trades and Crafts (CMA) if it is craft-related, or to URSSAF if it is self-employed.

What conditions must be met?

To qualify for theauto-entrepreneur scheme, annual sales for the previous year must not exceed a certain ceiling.

The applicable thresholds for 2017 are as follows

• 82,800 if the activity involves the purchase and resale of goods, hotels, restaurants or furnished rentals.
• 33,200 for commercial, craft or self-employed services

IMPORTANT

Sales are to be considered exclusive of tax,

the auto-entrepreneur does not charge VAT

What's more, an employee wishing to become an auto-entrepreneur must respect the non-competition clause in relation to his or her employer.

Social security contributions: which system applies to auto-entrepreneurs?

As far as social charges are concerned, the flat-rate withholding tax is currently in force. This is calculated on the basis of sales for the previous quarter or month, to which is applied a rate of social security contributions that varies according to the activity. 

The 2017 rates are as follows

• 13.1% for sales of goods, hotel and restaurant services
• 22.7% for other commercial, craft and liberal services covered by the RSI scheme
• 22.5% for self-employed workers covered by the CIPAV scheme

What is the tax regime for auto-entrepreneurs?

While auto-entrepreneurs are automatically subject to the micro-enterprise tax system, they can also opt to pay income tax at source. With the prélèvement libératoire de l'impôt sur le revenu, income tax and social security contributions are paid in a single payment.

The tax rates specific to the micro-tax system, based on sales, are as follows

• 1% for sales of goods and merchandise
• 1.7% for commercial and craft services
• 2.2% for non-commercial profits under the social security scheme for the self-employed and for self-employed activities under the CIPAV scheme

What social protection do I need?

With the same social security coverage as self-employed workers, auto-entrepreneurs are subject to the Régime Social des Indépendants. This entitles them to health and maternity insurance, family allowances, disability and death benefits, basic and supplementary pensions, and CSG-CRDS.

What assistance is available to auto-entrepreneurs / micro-entrepreneurs?

There are a number of interesting forms of assistance available for setting up a self-business or micro-business, and these are often decisive, especially when the project is being launched. One of the best options is to take advantage of the various grants and subsidies generally available from the government or other public bodies. These include financial support, tax relief and assistance with administrative formalities.

Panel of available business start-up grants

• NACRE: Thanks to the NACRE (Nouvel Accompagnement pour la Création et la Reprise d'Entreprise) scheme, for example, it is possible to borrow funds at reduced or zero interest rates.
• ACRE : The ACRE scheme (Aide aux Créateurs et Repreneurs d'Entreprise) enables you to benefit from a reduction in charges .
• Leasing: auto-entrepreneurs can also opt for leasing from banks, or an honor loan from specialized organizations. The advantage of the latter is that it is generally interest-free and requires no special guarantees.
• Business start-up support: In terms of training and support, a number of organizations, includingAgence France Entrepreneur (AFE), the Chambres des Métiers et de l'Artisanat (CMA) and the Chambres de Commerces et d'Industrie (CCI), help self-entrepreneurs build their business plans.

You can also find details of all these aids in our 2017 Guide to business start-up aids!

Commercial domiciliation

Domiciliation: a strategic choice!

Commercial domiciliation is a strategic choice that enables you to obtain a head office address in business centers located at prestigious addresses. This choice of domiciliation keeps private and professional life separate. Thanks to online domiciliation, auto-entrepreneurs can easily obtain an address that meets their expectations in terms of both price and prestige. What's more, setting up a domiciliation is simplified, enabling auto-entrepreneurs to cut through the red tape.