Micro-entrepreneur: what to know
Verified 19 December 2023 - Directorate for Legal and Administrative Information (Prime Minister)
The status of micro-entrepreneur (or self-entrepreneur) allows you to practice in your own name. Individual business It is a tax and social benefit system with a simplified tax and social system. The creation of a micro-company is quick and present fewer constraints than a business.
When you want to exercise a activity aloneindividual business So, the taking is a very good option. Individual business As a micro-entrepreneur, you create a company called micro-company because your turnover does not exceed a certain amount.
The company is simpler to create and manage than a business. For example, you don't need to write bylaws or set up a share capital.
Individual business Unlike business, the following does not create a legal personality. It's attached to your person, so it's not cannot have multiple individual companies individual business (1 individual = 1).
You can engage in a commercial, craft or liberal activity.
When you carry out an activity as a micro-entrepreneur, your personal and professional assets are automatically separated.
Your occupational heritage is composed of all that is useful to your professional activity. For example, it is your business premises, your business bank account.
Your personal assetsFor its part, it is composed of everything that does not fit into your professional heritage: for example, your booklets, your secondary residence.
This separation protects your personal wealth from your possible professional debts. However, if you do not comply with your tax or social obligations, the tax administration or social security bodies can obtain the reimbursement of their claims on your two assets.
FYI
To learn more about asset separation, you can consult the relevant sheet.
To benefit from the micro-company tax system, you must not exceed a certain turnover threshold. This threshold varies according to the activity carried out.
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Sale of goods, objects, supplies and foodstuffs to take away or consume on the spot
You generate industrial and commercial profits (BICs) taxed at income tax (IR). Your turnover shall not exceed €188,700.
When you exceed that threshold, you are subject to an effective tax regime.
You also have the opting in to benefit from an effective tax system, even if you meet the turnover threshold. For more information on actual tax regimes, see the corresponding card.
The micro-company regime simplified your tax obligations. To learn more about this plan, you can consult the relevant sheet.
Provision of accommodation
You generate industrial and commercial profits (BICs) taxed at income tax. Your turnover shall not exceed €188,700.
When you exceed that threshold, you are subject to an effective tax regime. You also have the opting in to benefit from an effective tax system, even if you meet the turnover threshold. For more information on this plan, please see the corresponding card.
The micro-company regime simplified your tax obligations. To learn more about this plan, you can consult the relevant sheet.
Provision of services
You generate industrial profits (BIC: titleContent) and commercial or non-commercial profits (NBC: titleContent) which are imposed on income tax. Your turnover shall not exceed €77,700.
When you exceed that threshold, you are subject to an effective tax regime. You also have the opting in to benefit from an effective tax system, even if you meet the turnover threshold. For more information on this plan, please see the corresponding card.
The micro-company regime simplified your tax obligations. To learn more about this plan, you can consult the relevant sheet.
You are subject to the social security system of self-employed persons. The amount and calculation of your social contributions varies according to your business and turnover.
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Sale of goods, objects, supplies and foodstuffs to take away or consume on the spot
The amount of your social security contributions is equal to 12.3% of your turnover. When your revenue is equal to €0Well, then you don't pay payroll taxes. You can, however opting to pay minimum contributions in order to benefit from social protection even in the absence of turnover.
Furnished housing supply or service provision (BIC)
The amount of your social security contributions is equal to 21.2% of your turnover. When your revenue is equal to €0Well, then you don't pay payroll taxes. You can, however opting to pay minimum contributions in order to benefit from social protection even in the absence of turnover.
Supply of furnished private accommodation
The amount of your social security contributions is equal to 6% of your turnover. When your revenue is equal to €0Well, then you don't pay payroll taxes. You can, however opting to pay minimum contributions in order to benefit from social protection even in the absence of turnover.
Regulated liberal profession
The amount of your social security contributions is equal to 21.2% of your turnover. When your revenue is equal to €0Well, then you don't pay payroll taxes. You can, however opting to pay minimum contributions in order to benefit from social protection even in the absence of turnover.
Unregulated Liberal Profession
The amount of your social security contributions is equal to 21.1% of your turnover. When your revenue is equal to €0Well, then you don't pay payroll taxes. You can, however opting to pay minimum contributions in order to benefit from social protection even in the absence of turnover.
To learn more about your social security contributions, you can consult the factsheet on the social security scheme for micro-entrepreneurs.
Individual business You can forward your family, to a salaried worker or to a third party (e.g. a business). The transmission may be carried out by way of free (donation) or in title expensive (assignment or business supply).
On the other hand, several problems arise:
- What do you have to transmit (models, know-how, technologies, website, brand, customer file, supplier file...)?
- How to set the transfer price? If you're a micro-entrepreneur and you don't keep books and you only have to show your sales, it's going to be difficult to assess the profitability of your business. The sale price will be discussed and negotiated with the buyer.
- Will your customers and suppliers follow the company if not you at the controls?
Micro-entrepreneur | Individual business | SASU | EURL | |
|---|---|---|---|---|
Number of partners | No partner | No partner | 1 | 1 |
Leader | Entrepreneur | Entrepreneur | ||
Share capital | No social capital | No social capital | ||
Taxation system | Income taxes (IR). Possible option for SI | Taxes on businesses (IS). Possible option for IR | Income taxes (IR). Possible option for SI | |
Social security of the director | ||||
Corporate securities | No securities | No securities | Actions | Shares |
Transmission of company | Free | Free | Free | Free |
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Micro-company tax system
Separation of assets
Social arrangements for micro-companies