How to set up your personal services business? Instructions for use

Personal services refer to all service activities designed to ensure the well-being of people in their own homes. Most often, these services are provided for families, the elderly, dependent or disabled people. There are three distinct segments of personal services:

• Family services (home childcare, tutoring, childcare support, computer and internet assistance, hardware and software installation, administrative assistance, etc.).
• Everyday services (home maintenance, housework, gardening, DIY, appliance maintenance, home meal delivery, etc.).
• Services for dependent people (nursing, medical care, hygiene care, mobility and transportation assistance, etc.).

They are experiencing strong growth, corresponding to a large and diversified social demand. More and more French people are deciding to enter this sector as freelancers. Would you like to find out more?

Discover our 2020 instructions!

Do I need official approval?

Some personal services require specific approval. These include :

• Childcare for children under 3. Prior approval is required whether you are a service provider or an authorized agent.
• Assistance for the elderly and disabled. Approval is compulsory if the organization acts as an agent or service provider.

If the activity is carried out as a service provider, it is essential to obtain authorization from the departmental council.

Other activities, on the other hand, require only a declaration to the relevant authorities (home care, home maintenance, housework, home meal preparation, sign language interpreter, etc.). To find out more, visit the official French public administration website.

How do you choose your legal status?

There are several legal forms available for working in this sector:

• EIRL (Entreprise individuelle à responsabilité limitée). As the name suggests, the entrepreneur is only liable for the amount of capital he or she has contributed to the company. His or her personal assets are protected in the event of bad business, and cannot be used to recover any debts.
• EURL (Entreprise universelle à responsabilité limitée). It offers the same advantages as the EIRL, but its manager is considered a self-employed worker. It benefits from a specific social protection scheme, less effective than that of salaried employees.
• The SASU (Société par actions simplifiée unipersonnelle) is particularly flexible. Its day-to-day operation is set out in the articles of association. The Chairman of the SASU is covered by the general social security system.
• The micro-entrepreneur status status is particularly easy to set up, manage and wind up. Your social security contributions are calculated on the basis of your gross sales. This is capped at €176,200 for sales and purchases, and €72,500 for services.

If you want to set up a company and bring in one or more partners, we recommend :

• La SARL SARL (limited liability company): Run by a day-to-day manager and an annual general meeting attended by all partners, the company requires at least 2 partners and a minimum share capital of €1. Partners' liability is limited to the amount of their capital contributions to the company. Administrative formalities are simplified, and you can choose your tax regime.
• La SAS SAS: A minimum share capital of €1 is required, and at least two partners are needed to set up a company. An SAS is managed by a Chairman, who may be a natural or legal person. It therefore has a solid Internet organization and simplified governance.

What are the tax and social benefits of personal services?

Individuals using personal services benefit from an income tax credit equal to 50% of the expenses incurred, up to a limit of €12,000 per year.

However, there is a specific annual ceiling for : 

• Home gardening (up to €5,000)
• Computer and Internet assistance (€3,000 maximum)
• DIY activities (up to €500)

If your tax credit exceeds the amount of your income tax, the tax authorities are obliged to refund the difference.

The tax credit is calculated on the basis of the expenses you declare in your annual tax return.

For private employers, the social security system also allows a €2 deduction from employers' contributions to health, maternity, disability and death insurance for each hour worked.

Employers aged over 70 benefit from an exemption from employer's contributions on the remuneration of home helps, up to a limit of 65 times the monthly SMIC hourly wage.