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

Personal services refer to all service activities aimed at the well-being of people in their homes. Most often, this involves providing services to families, the elderly, and dependent or disabled people. There are three main segments of personal services:

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

They are experiencing strong growth, corresponding to a significant and diverse social demand. More and more French people are deciding to enter this sector as freelancers. Want to know more?

Check out our 2020 user guide!

Is it essential to obtain official accreditation?

Some personal service activities require a specific approval. Specifically, these include:

• Childcare for a child under 3 years old. Prior approval is required whether you are a service provider or an agent during the service.
• Assistance to the elderly and disabled. Accreditation is mandatory if the organization acts as an agent or service provider.

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

However, other activities only require a declaration to the competent authorities (home care, house maintenance, housework, meal preparation at home, sign language interpreter, etc.). For more information, visit the official website of the French public administration.

How do you choose your legal status?

Several legal statuses are available for you to work 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 concerning 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 services (maximum €5,000)
• IT and internet assistance (maximum €3,000)
• DIY activities (maximum €500)

If your tax credit is greater than the amount of your income tax, the tax authorities are required to refund you the difference.

The tax credit is calculated based on the expenses you declare in your annual income tax return.

For individual employers, social security also allows for a reduction of €2 in employer contributions for health, maternity, disability and death insurance per hour worked.

Also, employers 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 minimum hourly wage.