Business

France — Business: Sole Proprietorship

Micro-entreprise and auto-entrepreneur are now the same regime (merged since 1 January 2016) — a simplified tax/social security system for individual entrepreneurs, not a separate legal form. 2026 annual turnover thresholds: €203,100 for goods sales/food/lodging activities, €83,600 for services (mixed activities cap at €203,100 total, max €83,600 from services). VAT exemption (franchise en base) applies below €85,000/€93,500 (goods) or €37,500/€41,250 (services) — the higher figure is a tolerance threshold; exceeding it makes VAT registration compulsory. Exceeding the turnover ceiling for two consecutive years exits the regime from 1 January of the following year.

URSSAF / Service-Public Entreprendre — Micro-entreprise (auto-entrepreneur) regime · Last verified 2026-07-20

Key Facts

  • Micro-entreprise = auto-entrepreneur (merged since 2016) — a tax/social security regime, not a distinct legal form.
  • 2026 turnover thresholds: €203,100 (goods/food/lodging), €83,600 (services); mixed activities cap at €203,100 total.
  • VAT exemption thresholds: €85,000/€93,500 (goods), €37,500/€41,250 (services) — exceeding the higher figure makes VAT registration compulsory.
  • Exceeding the turnover ceiling for two consecutive years exits the micro-entreprise regime from the following 1 January.

Common Mistakes

  • Confusing 'auto-entrepreneur' as a separate status from 'micro-entreprise' — they have been the same regime since 2016.
  • Not tracking the two-consecutive-year rule for exceeding turnover thresholds — a single high year does not automatically exit the regime.

Related Topics

company-formationaccounting
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