The auto-entrepreneur (officially the micro-entreprise) regime is the simplest way to start a business in France. It's ideal for freelancers and side projects, with light administration and social charges calculated as a percentage of turnover. But it has ceilings and limitations that mean many founders eventually move to a company structure.
What is the auto-entrepreneur regime?
The micro-entreprise is a simplified regime for individual entrepreneurs. Social contributions and, optionally, income tax are calculated as a flat percentage of the turnover you actually collect — if you invoice nothing, you pay nothing.
Turnover ceilings
The regime is only available below annual turnover ceilings, which differ for the sale of goods and for services. Exceeding them for two consecutive years moves you out of the regime.
| Feature | Detail |
|---|---|
| Turnover ceilings | Separate limits for goods (higher) and services (lower) |
| Social charges | Micro-social: a flat % of collected turnover |
| Accounting | Simplified — a turnover register, no full accounts |
| Liability | Unlimited — no separation of personal assets by default |
TVA and the franchise en base
Auto-entrepreneurs typically benefit from the franchise en base de TVA and don't charge TVA — until they exceed the VAT thresholds, at which point they must register and charge TVA even while remaining a micro-entreprise.
Obligations you still have
- Declare turnover monthly or quarterly to URSSAF and pay micro-social charges.
- Keep a register of receipts (and purchases, for goods).
- Issue compliant invoices, including the correct TVA mention.
- Have a dedicated bank account once turnover passes the threshold requiring it.
- Monitor the ceilings so you can plan a transition in good time.
When to move to a company
As turnover and costs grow, the micro-entreprise becomes less efficient because you can't deduct real expenses or reclaim TVA on purchases. Many founders switch to a SASU or EURL to gain limited liability, deduct costs and optimise their tax and social position.
Common mistakes to avoid
The pitfalls we see businesses run into most often on this topic.
- Ignoring the turnover ceilings until you're forced out of the regime unexpectedly.
- Forgetting that you must charge TVA once you exceed the VAT thresholds, even as a micro-entreprise.
- Not deducting expenses — which you can't under micro — when your real costs are high.
- Failing to declare turnover to URSSAF on time.
- Staying in the regime too long when a SASU or EURL would be more efficient.
Frequently asked questions
How Stratancy can help
Stratancy helps you decide whether the auto-entrepreneur regime fits your plans, sets you up correctly with URSSAF, and monitors your turnover against the ceilings so a transition is planned rather than forced. When it's time to move to a SASU or EURL, we manage the whole conversion — formation, accounting, TVA and payroll — so you keep trading without disruption. You get clear, founder-focused advice at every stage.