Auto Entrepreneur is Good News for the Self-Employed
Originally posted on & updated on 11th October, 2024
There are some good reasons for the self-employed and for those wishing to start a business in France to celebrate with the great news that as from the 1st of January 2009, France will be introducing major changes to the self-employment system. The new system called ‘auto-entrepreneur’ will make it easier, quicker and cheaper for individuals to start up a small business in France.
Under the auto-entrepreneur system there will be limits on turnover of €80,000 for commerce businesses and €32,000 euros for service based businesses, social charges however will be a lot more affordable. Businesses engaged in commercial activities should expect to pay 13% of their annual turnover in social charges and taxes while service based businesses will pay 23% of their annual turnover in social charges and taxes.
The main highlights of the auto-entrepreneur system are that newly registered individuals will be exempt from paying the ‘taxe professionnelle’ for the first 3 years and there will be no social charges or taxes payable until the new business starts to generate sales.
Registering into the auto-entrepreneur system is much simpler as there are no courses to attend and no registration fees, you just need to visit your local ‘Chambre de Commerce’ or ‘Chambre de Métiers’ and fill out a form. You may aslo want to learn about what a SIRET (or SIREN) number is, and how to get one?
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