Our experts will guide you in your choice of domicile.
Our experts will guide you in your choice of domicile.
Widely acclaimed for its flexibility, the micro-entrepreneur scheme is equally well-suited to the provision of services, the sale of goods and self-employment. However, it also has its limits, particularly in terms of sales and deductible expenses. So it's essential to understand how it works before you start.
In this article, we'll review the advantages and disadvantages of micro-enterprises, the steps involved in setting them up, tax and social security obligations, and best practices for optimizing the management of your business.
The micro-enterprise or auto entreprise status is a simplified system that enables self-employed people to run a business in their own name, with fewer administrative and tax formalities. It is designed to facilitate business start-ups, particularly for individual entrepreneurs wishing to test a project without major financial commitment.
The auto entrepreneur scheme covers three main categories of activity:
Micro-entrepreneurs benefit from a simplified tax and social security system, with social security contributions calculated on the basis of sales. Unlike conventional companies, they are not required to produce a balance sheet, which considerably reduces their administrative obligations.
Since 2016, the terms auto-entrepreneur and micro-entrepreneur have become synonymous. Previously, the auto-entrepreneur benefited from a specific regime, while the micro-entreprise encompassed other legal forms.
The micro scheme has undergone a number of adjustments, including higher sales thresholds and changes to the VAT exemption. Its appeal lies in its ease of management, but it's important to understand the rules to avoid tax or administrative errors.
This status is therefore an accessible gateway to launching a business, while remaining governed by sales ceilings and precise obligations.
The micro-entreprise system appeals to many entrepreneurs thanks to its simplicity and flexibility. The micro-enterprise scheme offers a number of tax, social security and administrative advantages that make it easier to run a self-employed business.
One of the major advantages of micro-entrepreneur status is the ease with which it can be set up. Registration to become an auto-entrepreneur takes just a few minutes on line, via the official platforms (URSSAF, CFE).
Unlike other legal forms, you don't need to draw up any articles of association or share capital. All you need to do is assemble the documents required to set up a micro-business and follow the steps indicated.
The micro regime imposes reduced accounting and tax obligations. Micro-entrepreneurs do not need to keep detailed accounts or produce an annual balance sheet.
It simply has to :
These limited obligations allow you to concentrate fully on your business.
Micro-entrepreneurs benefit from a simplified tax system based on proportional deduction ofincome tax. They can also opt for a " versement libératoire" (payment in full discharge of income tax), a payment method that allows them to pay their taxes as they go along, according to the sales they receive.
Under the micro-social system, social security contributions are calculated on the basis of sales, with no fixed charges. So, in the absence of income, the entrepreneur has no contributions to pay.
Contribution rates vary according to activity:
Micro-entrepreneurs enjoy social protection similar to that of self-employed workers:
Thanks to these many advantages, micro-enterprise status is an ideal solution for those wishing to test a business with minimal formalities. However, it is essential to be aware of its limitations, to avoid any unpleasant surprises.
While micro-business status is attractive for its simplicity and tax advantages, it also has a number of limitations that need to be taken into account before starting up. These constraints can have an impact on the growth and financial management of the business.
The micro scheme is subject to sales ceilings that determine eligibility for the scheme:
If these thresholds are exceeded for two consecutive years, the entrepreneur automatically switches to a real tax regime, with more onerous accounting and tax obligations.
Taxation and social security contributions are calculated on gross sales, which can be disadvantageous for businesses requiring substantial investment.
Although micro-entrepreneurs benefit from social protection, it remains less advantageous than that of salaried employees. For example:
After one year in business, all micro-entrepreneurs are liable for the cotisation foncière des entreprises(CFE), a local tax that varies according to the commune. Even if sales are low, this charge remains due, unless specifically exempted.
Certain professions are not eligible for the micro regime, in particular :
Micro-enterprise status is therefore an attractive way to get started, but you need to assess its constraints to make sure it's suited to the entrepreneur's objectives.
Setting up a micro-business is a quick and easy process that can be carried out online. However, there are a number of steps that need to be followed to ensure compliance and avoid administrative errors.
Before registering, it is essential to define your activity according to your project:
Your choice of activity will determine the APE code assigned to your business, as well as the organization to which it is attached (URSSAF, Chambre des métiers or Chambre de commerce).
You can register on theURSSAF website or with the Centre de Formalités des Entreprises (CFE) corresponding to your activity. Registration is free of charge and requires :
Once this declaration has been made, the entrepreneur receives a SIRET number within a few days, certifying his registration with the authorities.
The choice of address is a key step in setting up a micro-business. Three options are available to the entrepreneur:
Since February 2025, BNC self-employed workers have been able to domicile their business via a domiciliation company, without using their home address. This reinforces the separation of business and personal life, and the professional image.
If annual sales exceed €10,000 for two consecutive years, the micro-entrepreneur must open a dedicated bank account.
This account enables :
Once the micro-enterprise is registered, certain obligations must be met:
Thanks to these straightforward procedures, setting up a micro-business is a simple way of starting up a business, with a legal and tax framework adapted to independent entrepreneurs.
To avoid mistakes and stay in compliance, it's essential to understand how to declare and pay charges.
Under the micro-social system, social security contributions are calculated on the basis of sales. Payment is made monthly or quarterly via theURSSAF website.
Social security contribution rates vary according to the activity carried out:
If no sales are declared, no social security contributions are due, but the absence of income can have an impact on pension and social security entitlements.
Micro-entrepreneurs are taxed on their sales, with no possibility of deducting expenses. There are two tax options:
This option is only available if the household's reference tax income does not exceed a certain threshold.
This declaration is made online via URSSAF on a monthly or quarterly basis, depending on the choice made when registering.
Delays or omissions can result in financial penalties, which is why it's so important to plan ahead.
From the second year of business, micro-entrepreneurs are required to pay the cotisation foncière des entreprises (CFE), unless specifically exempted. The amount varies according to the commune and business activity.
Every micro-entrepreneur must pay a contribution to professional training, calculated on the basis of sales:
This contribution gives access to funding for training and skills development.
By complying with these obligations, the micro-entrepreneur secures his business and avoids administrative sanctions. Good management of declarations and payments optimizes taxation and ensures the viability of the entrepreneurial project.
The micro-enterprise scheme is based on sales thresholds that determine eligibility for the status and tax obligations. These thresholds must be respected to retain the benefits of the simplified regime.
Micro-entrepreneurs must be careful not to exceed certain overall sales thresholds:
If sales exceed these limits for two consecutive years, the entrepreneur automatically switches to a real tax system.
Exceeding the thresholds leads to several changes:
To prevent thresholds from being exceeded, it is advisable to :
Good management allows you to benefit from the micro regime while preparing for a possible transition to another status.
Running a micro-business is simpler than running any other legal status, but it still requires rigorous organization to ensure the long-term viability of the business. Here are a few practical tips to optimize your day-to-day management.
Keeping track of sales is essential if you are to stay within the limits of the micro scheme and avoid an involuntary switch to a more restrictive tax regime.
To achieve this, we recommend :
Although the micro scheme does not require in-depth accounting, there are a number of tools that can help you save time and optimize your business:
Rigorous management and good organization are essential to ensure the long-term future of your business. To this end, we recommend adopting good micro-business accounting practices to make it easier to keep track of finances and anticipate tax obligations."
As social security contributions andincome tax are deducted from sales, it is advisable to set aside a percentage of each income received. In general, a reserve of 25% to 30% of sales enables you to anticipate these payments without difficulty.
Customer satisfaction is a key factor in ensuring the stability of your business. It is essential to :
Efficient management means you can secure your business and take full advantage of the benefits of micro-entrepreneur status.
Micro-enterprise status represents an accessible, flexible opportunity for anyone wishing to launch a self-employed business. Thanks to its simplified formalities, advantageous tax system and social security contributions proportional to sales, it enables you to test an entrepreneurial project with few constraints.
However, this system also has its limits, including sales thresholds to be respected, theimpossibility of deducting charges, and more limited social protection than that of an employee. It is therefore essential to fully understand these aspects to avoid unpleasant surprises and optimize the management of your business.
To set up a micro-business, just follow a few key steps:
By adhering to these principles and adopting a rigorous management approach, you can take full advantage of the benefits of the micro-entrepreneur scheme and develop your business with peace of mind. Before you get started, take the time to assess your needs and adapt your organization to maximize your chances of success.
News
Reading time: 6 min
