What is the micro-enterprise regime like?

Although there are several company regimes, entrepreneurs often opt for micro-enterprise. This is partly due to the various advantages perceived in comparison to other schemes, in particular unrivaled administrative flexibility which attracts more than two thirds of business creators in France each year.

What are the advantages of micro-enterprises?

If previously, entrepreneurs were hesitant about the micro-enterprise regime, this no longer seems exactly the case today. This type of regime allows entrepreneurs to create their activities with simplified formalities. Indeed, the creation of a micro-enterprise only requires a simple dematerialized declaration on the Single Window for Companies.

The micro-enterprise is not a legal status in itself, but an ultra-simplified regime attached to the Individual Enterprise (EI). The State reduces tax and accounting formalities to the strict minimum for this regime. The entrepreneur thus avoids the production of an annual balance sheet and does not file any income statement with the registry.

The micro-enterprise benefits from a VAT-based exemption, which exempts the entrepreneur from having to invoice it or recover it under certain ceilings. In addition to social security contributions, the creator pays income tax, often via a final payment to pay these two charges simultaneously.

Urssaf calculates your social security contributions solely on the basis of the turnover you actually collect. This method guarantees that in the absence of income, the entrepreneur does not pay any social security contributions. If you don’t generate any income, you don’t pay any contributions.

Since its creation, the micro-enterprise regime has conquered many professional sectors, from digital consulting to crafts. Since the entrepreneur and the micro-enterprise share the same legal personality, the law exempts the creator from producing a complex tax return. The entrepreneur must, however, keep a chronological revenue book and, if he sells goods, a purchase register.

What are the rules to follow to submit to this tax regime?

Like other business models, the micro-enterprise imposes specific conditions, such as annual turnover ceilings to be respected. The entrepreneur must follow these thresholds to maintain his eligibility for this simplified tax regime. If these ceilings are crossed over two consecutive years, the entrepreneur will have to switch to the real tax regime.

For the years 2023 to 2025 (current three-year period), the thresholds are as follows:

• €188,700 for activities selling goods, objects, supplies, foodstuffs to take away or to consume on site, as well as for accommodation services (hotels, guest rooms, classified rural lodges).
• €77,700 for the provision of services relating to industrial and commercial profits (BIC) or non-commercial profits (BNC), as well as for the liberal professions.

Important note on VAT: Be careful not to confuse the scheme threshold (€77,700) and the VAT exemption threshold (€39,100 for services). Between these two figures, you remain self-employed but you must invoice VAT.

The micro-enterprise regime has various advantages, which pushes hundreds of thousands of future entrepreneurs each year to choose this model. But before making your choice, you need to see if your future business complies with all the rules.

In particular, remember to check profitability: as you cannot deduct your real expenses (rent, gasoline, equipment), this plan is ideal if your expenses are low, but can prove costly if you have a lot of investments, especially in the provision of services where the threshold of €77,700 can be reached quickly if successful.

Summary of key figures (Annual ceilings)

These figures are based on the latest scales in force and are re-evaluated every three years.