Guide to Creating a Micro-Enterprise in France for Non-Residents

The principle is that the non-residents can create a micro-enterprise in France.

The steps to be taken vary according to the situation of the foreign business creator, depending in particular on his country of origin and his place of residence.

Become auto-entrepreneur while being an expatriate is also possible.

Companies with a turnover not exceeding certain limits can benefit from a simplified tax regime: the micro-enterprise or auto-entrepreneur regime.

They are exempted from filing professional declarations and their taxable profit is determined after deduction of a flat-rate allowance on the gross turnover shown on the overall income statement (no. 2042 C PRO).
Individual entrepreneurs placed under the micro-enterprise tax system can also opt for a system allowing them to pay, on option, income tax and all social security contributions and contributions each month or each quarter by final payments, equal to a percentage of the turnover of business or revenue made in the previous month or quarter. Thus, the payments in discharge of income tax are at the rate of:

• 1% for housing sales and supply activities;
• 1.7% for other taxable activities in the BIC category;
• 2.2% for taxable income in the BNC category.

The auto-entrepreneur can opt for the flat-rate payment in discharge of income tax when the following conditions are met:

• Be on a diet micro-BIC ou micro-BNC by respecting the conditions provided for in articles 50-0 and 102 ter of the CGI (in particular turnover of €77,700 for the provision of services for the years 2023, etc.);
• The amount of tax household income for the penultimate year for a share of the family quotient is less than or equal to the upper limit of the second bracket of the income tax scale for the previous year in respect of which the option is exercised (this limit is increased by 50% or 25% respectively for each additional half-unit or quarter-unit). For a non-residentthe reference tax income is determined solely on the basis of income from French sources of the tax household of the non-resident;

• Be subject to the micro-social scheme (payment in discharge of contributions and social security contributions provided for in article L 133-6-8 of the Social Security Code). Since January 1, 2016, the micro-social regime applies automatically to operators subject to the micro-BIC and micro-BNC regimes.
This device is not conditioned by tax residence, l’auto-entrepreneur can therefore benefit non-residents who meet these eligibility conditions.