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Company Formation France



Open a Micro Enterprise in France

Updated on Thursday 27th May 2021

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Open-a-Micro-Enterprise-in-France.jpgA micro enterprise in France is a type of company that is available for persons who want to start their own small business. This option for opening a business in France has been available for investors starting with 2009 and it is a suitable vehicle for those who are not very familiarized with the procedures for company formation in France, as this structure benefits from simpler registration requirements. 
At the same time, the micro enterprise in France benefits from very simple accounting and bookkeeping rules, making it a suitable way to enter the business market for those who want to operate their own company, but who do not have experience in management, accounting, legal or corporate tax fields. Persons who want to establish their own micro enterprise are invited to request information on the characteristics of this structure from our team of consultants in company registration in France

Is the micro enterprise in France a corporate structure?

From a legal and tax point of view, the micro enterprise in France is not considered a corporate structure, with its own legal personality. This means that there isn’t any legal distinction between the company’s founder and the company, which has a consequence the fact that the investor will become personally responsible for the company’s debts, where applicable. 
If you want to open a company in France as a micro enterprise, you must know that this structure benefits from a special tax regime, which is not applicable to corporate structures. The purpose of a micro enterprise in France is generally to provide a legal way through which persons who have a low to moderate yearly income can increase their income by running a small business, in which they sell their own services or goods to other clients.  

What are the tax considerations for a micro enterprise in France?

However, successful businesses can guarantee the fact that the person who has started the business will not need to work under an employment contract for another company, besides his or her own micro enterprise in France. From a tax point of view, the micro enterprise offers a tax exemption on the payment of the value added tax (VAT), as long as the company’s yearly income is limited to a certain threshold. 
The threshold is different for those selling goods and products and for those who provide services to local clients. If you are interested in the tax system applicable to this company type, as well as the obligations the owner has in regards to submitting returns with the local tax authorities, our team of specialists in company formation in France can help. Our team has also prepared a short presentation on the main tax aspects that you should know: 
  • if you develop a services activity through your micro enterprise in France, the maximum yearly turnover has to be EUR 72,500;
  • those who develop commercial activities (meaning, the sale of goods and products) or operate in the accommodation industry can have an yearly turnover of EUR 176,200;
  • please mind that a business owner can develop both services and commercial activities, but the turnover has to be of maximum EUR 176,200, while the services component of the business has to represent maximum EUR 72,500 from the entire revenue;
  • the company must be registered with the local institutions, as well as for tax purposes, and will be issued with a Business Registration Number, comprised of 14 digits (the first 9 refer to the company’s registration code in the national business register, and the latter 5, the identification of the business based on its geographical location);
  • the micro enterprise in France is very popular, as in 2016, there were more than 1.1 million such structures registered at a national level. 

Who can register as micro enterprise in France?

Although most of the business activities are eligible for operating through a micro enterprise in France, certain operations can’t be done through this structure. Thus, if you want to open a company in France as a micro enterprise, you should be aware that certain activities or professionals can’t operate through this entity. 
This applies to those who want to start an agricultural business, real estate rental activities, certain artistic activities or to professionals who work as accountants or insurers, for example. Persons involved in the justice system are also not allowed to perform their activities through a micro enterprise in France. If you need more details regarding this subject, we invite you to contact our team of consultants in company registration in France, who can advise on all the legal procedures you should follow during the incorporation of this structure. 

Meet us in Paris

Call us now at +33 9 73 22 01 51 to set up an appointment with our lawyers in Paris, France. Alternatively you can incorporate your company without traveling to France.

As a BridgeWest client, you will beneficiate from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in France.