Starting a business in France doesn’t have to mean building a company structure from scratch. For many expats, freelancers, consultants, remote workers and retirees testing an idea, the micro-entreprise regime is the simplest way to operate legally in France.
It’s flexible and administrative-light. And when used correctly, it can be extremely efficient. But it’s also widely misunderstood.
This article explains how the micro-enterprise regime in France actually works, including updated turnover thresholds, tax rules and how to register properly.
Table of contents
What is a micro-enterprise in France?
A micro-entreprise is not a separate legal structure. It is a tax and social regime available to an entrepreneur individuel (EI), an individual operating in their own name.
In simple terms: You are personally the business. There is no separate company entity.
The terms:
- Micro-entreprise = the regime
- Micro-entrepreneur / auto-entrepreneur = the person using the regime
Since 2016, “auto-entrepreneur” and “micro-entrepreneur” refer to the same system. You can no longer create an EIRL (Entrepreneur Individuel à Responsabilité Limitée). Since the 2022 reform, only the new unified EI status exists.
Who is micro-enterprise suitable for?
The regime works well for:
- Freelancers and consultants
- Remote workers billing abroad
- Creative professionals
- Small service providers
- Tutors, coaches, designers
- Certain commercial or craft activities
- Some short-term rental operators (with new 2026 limits)
It is less suitable if:
- You expect high turnover quickly
- You need heavy deductible expenses
- You want investor funding
- You need strong liability separation
Micro-enterprise turnover thresholds (updated 2026)
Micro-enterprise eligibility depends on annual turnover ceilings set by law.
For 2026, the thresholds are:
- Commercial Activities (Buying/Selling Goods + Accommodation Services): 203,100 €
- Service Provision & Liberal Professions: 83,600 €
These ceilings are set by law and can change, always verify current figures before registering.
Important 2026 Change: Furnished Tourist Rentals
This is a major update.
- Non-classified furnished tourist rentals (Airbnb style): 15,000 € ceiling
- Classified furnished rentals / chambres d’hôtes: 83,600 €
If you plan short-term rentals, this distinction is critical.
What happens if you exceed the threshold?
If you exceed the micro-enterprise ceiling for two consecutive years, you automatically move to the régime réel from 1 January of the following year.
This is not immediate expulsion, it is triggered after two years over the limit.
> You might be interested in this article: Setting up a business as an auto-entrepreneur in France
How to start a micro-enterprise in France
Since 1 January 2023, all business formalities must go through the Guichet Unique (INPI). The old Business Formalities Centres (CFE) no longer process new registrations. You must register online via the official INPI portal.
Information required
You will provide:
- Identity details
- Description of activity
- Start date
- Tax option choice
- Proof of address (under 3 months old)
- ID document
- Declaration of non-conviction
Once approved, you receive:
- Your SIRET number
- Your APE code
- Social security affiliation confirmation
For commercial agents, registration with the RSAC currently costs 23.86 €. For most commercial, liberal and craft activities, formal registration is generally free.
How micro-enterprise tax works
Micro-enterprise operates under two linked systems:
Micro-discal (income tax)
Your taxable income is:
Turnover – flat-rate abatement
The abatement depends on activity type and has a minimum of 305 €.
You are taxed on the remaining amount via standard income tax rates. You may also opt for versement libératoire (final payment option), subject to income eligibility.
Micro-social (social contributions)
Social contributions are calculated as a percentage of declared turnover.
No turnover = contributions calculated at zero.
However, declaring zero affects validation of certain social rights (retirement, coverage periods). There are no fixed minimum social charges under the micro regime.
First turnover declaration rules
A minimum of 90 days must pass between your activity start date and your first turnover declaration.
You can choose:
- Monthly reporting
- Quarterly reporting
Declarations are made online via URSSAF.
Even if your turnover is zero, declaration is mandatory.
Bank account requirements
You must open a dedicated business bank account if your turnover exceeds 10,000 € for two consecutive years.
Below that threshold, a separate account is not legally required, though often advisable.
> You might be interested in this article: Understanding URSSAF when working in France
What support is exists for micro-entrepreneurs?
Several programs may apply depending on your situation:
- ARE (Aide au retour à l’emploi): Allows partial retention of unemployment benefits while running your business.
- ARCE (Aide à la reprise ou à la création d’entreprise): Provides part of remaining unemployment benefits as a capital payment.
- NACRE (Nouvel accompagnement pour la création et la reprise d’entreprise): Offers structured business support and guidance.
- ACRE (Aide aux créateurs et repreneurs d’entreprise): Reduced social contributions. Eligibility varies based on status and profile.
Practical advice for Expats
Starting a micro-enterprise in France is administratively simple. Running one strategically is different.
Before registering, ask yourself:
- Will my turnover stay below thresholds?
- Are my expenses low enough to suit flat-rate deductions?
- Do I need stronger liability protection?
- Will my visa/residency status allow this activity?
Micro-enterprise is excellent for testing an idea. It is not always optimal long-term.
FAQs: Creating a micro-enterprise in France
Is micro-enterprise a separate legal company?
No. It is a tax and social regime available to an entrepreneur individuel (EI).
Can foreigners start a micro-enterprise in France?
Yes, provided your visa or residency status authorises professional activity.
What happens if I earn zero?
You must still declare turnover. Social contributions calculated on zero are zero, but this may affect certain rights.
Can I switch from micro-enterprise to SASU?
You cannot convert directly. You must close the micro-enterprise and create a new company.
How do I close a micro-enterprise in France?
You file a cessation declaration online via the INPI guichet unique.
Final notes
The micro-enterprise regime in France is one of the most accessible entrepreneurial systems in Europe. But accessibility does not mean simplicity of consequences.
Thresholds matter. ACRE deadlines matter. Reporting discipline matters.
Used correctly, it gives you flexibility, lower overhead and controlled risk. Used casually, it can create tax and compliance friction later.
Updated February 2026
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