How can I set up a micro-business while living abroad?

Many French people choose the auto-entrepreneur scheme , renamed "micro-entrepreneur" since the 2015 reforms.

In practical terms, a micro-entrepreneur runs a micro-business, and both statuses are now governed by the same rules.

In reality, this is not a legal status, but a specific regime.

This is known as the "simplified micro-social regime", and gives entrepreneurs a number of advantages at the time of creation, during management and when the company is wound up.

According to INSEE, micro-businesses are doing very well, with a growth rate in excess of 10%, making them the leading type of business created in France in 2018! The reasons for this success lie above all in the streamlining of the formalities involved in setting up a business.

It couldn't be easier: from France or abroad, with just a few documents, find out how to set up your micro-business online.

What are the formalities involved?

Do you live abroad and want to set up a micro-business? That's no problem at all, since 100% of the procedures are online!

To do so, visit the official government platforms the auto-entrepreneurs portal or guichet entreprise. 

When you register, you will be asked to make several choices:

• What is your company's registered address?
• What are your personal details?
• What is the purpose of your business?
• Which health insurance organization do you want to join?
• Would you like to opt for payment in full of income tax?
• Would you like to separate your professional and private assets by creating an EIRL or EURL?

Once the questionnaire has been completed, a simple proof of identity is required.

All your formalities will be handled by the CFE (Centre de Formalités des Entreprises) responsible for your business sector.

INSEE will provide you with a business identification number (commonly known as the SIRET number) and an APE code for your business within approximately 6 weeks.

Once you have all these documents and information, you can immediately start operating your micro-enterprise.

Micro-businesses alone accounted for 40% of business registration applications in France in the first quarter of 2018!

What are the specific rules?

Specific rules apply depending on your sector of activity

If you're a retailer, you'll need to register with the RCS.

Artisans are required to register with the Trade Register (RM). If you are a commercial agent, you must register with the special register of commercial agents.

Recent proposals in the PACTE law make the pre-installation training course optional. It used to be compulsory for craftsmen.

Certain sectors require mandatory professional insurance to cover your business assets and those of your customers.

What are the prohibitions?

To continue to benefit from the micro-entrepreneur scheme, you must not exceed a certain sales threshold.

If this is not the case, your business will immediately be reclassified as a sole proprietorship, and you will de facto lose the advantages inherent in this regime.

For 2018, they are set at the following amounts:

• 170,000 for commercial, on-trade or accommodation businesses
• 70,000 for services.

In addition, certain professions cannot be carried out under the micro-entrepreneur scheme, such as activities carried out in a subordinate capacity, for which only salaried employment should be considered.

Activities subject to real estate VAT are not eligible.

Setting up a micro-entrepreneur business in France is therefore possible wherever you are, whether in France or abroad.

It's also possible to add a foreign office or a branch to your business, thanks to the dematerialization of administrative procedures that encourages business creation.