When Claire left her full-time role to start a small design business in Lyon, she worried about health coverage and invoices. She found that with the right structure she could keep creative freedom while gaining real protections.
In France, millions of independent people use the micro-entreprise route to get simplified taxes, reduced social charges, and access to universal healthcare. After 12 months, paid sick and parental leave become available, and proper invoicing keeps client relationships strong even before a SIRET arrives.
There are clear options: stay a solo entrepreneur, form a company, or use portage salarial to combine employee-like protections with outsourced admin for a small fee. We explain how to track turnover, respect VAT thresholds, and manage security contributions so your cash flow stays steady over time.
Our goal is practical: help you evaluate residency rules, choose the right path for your work, and protect your income and clients while you grow.
Table of Contents
Key Takeaways
- Micro-entreprise offers simple taxes and access to social security from day one.
- Portage salarial gives company-like protections with less admin for a small fee.
- Keep compliant invoices and watch VAT and turnover limits to avoid surprises.
- Plan for security contributions, paid leave, and steady cash flow.
- We guide you step-by-step to balance independence with long-term stability.
Before You Start: Can You Be Self‑Employed in France Today?
Start with eligibility: who may register a business now and what paperwork matters. EU nationals can set up as micro-entrepreneurs immediately without a special residence title. Non-EU nationals must hold a residence card that specifically authorizes independent activity.
If you hold an employee, temporary worker, or student visa, you generally cannot begin independent activity. Plan a change of status or wait until your studies end to avoid refusal and lost time.
Key residence paths and practical steps
| Status | Can register? | What is required | Typical time |
|---|---|---|---|
| EU national | Yes | Online micro-entreprise registration, French address | Immediate |
| Non‑EU with entrepreneur card | Yes | Business plan, projections, domiciliation | Weeks to months |
| Employee / student visa | No | Change of status required | Months (varies) |
Register a French business address (adresse de domiciliation) early: banks, clients and URSSAF will ask for it. Document your activity clearly—profession libérale, artisan, or commerçant—to align with chambers and declarations.
- Social coverage includes state health insurance; after 12 months you gain eligibility for paid sick and parental leave based on income.
- Prepare a credible plan for the carte de séjour entrepreneur/profession libérale: market need, client sourcing, and financial projections.
- For practical guidance on starting as a freelancer in France, see our detailed guide: working in France as a freelancer.
Choosing the right business status for stability
A clear business status makes growth predictable and secures your personal assets. This choice affects taxes, accounting, and how you bill clients. It also sets your exposure to business risk.
Micro‑entreprise: simple rules and clear limits
Start here for speed and low admin. The micro- regime suits a sole trader with predictable turnover. Services are capped at €72,600 per year; sale of goods at €176,200. Exceed those limits and you move to a different tax regime.
EURL and SASU: limited liability companies
Choose EURL or SASU when you need protection for personal assets or plan investment. There are no turnover limits, but setup requires statutes, legal notices and a capital deposit. Budget roughly €300–€500 for a basic SASU setup plus professional fees.
Portage salarial: employee‑grade security with less admin
Consider portage salarial if you want to focus on clients while keeping employee rights. An umbrella company invoices for you, pays social charges and a salary, and generally charges 7–10% of invoicing. This can include unemployment and standard retirement contributions.
Regulated professions and specific rules
Some professions—architects, lawyers, medical and paramedical roles, accountants and surveyors—cannot use standard micro- status. Check URSSAF lists and professional orders before you register.
- Match status to risk: micro- for simplicity; company forms for asset protection; portage for security.
- Watch the limit: track turnover and plan transitions before thresholds trigger regime changes.
- Keep accounting proportional: micro- needs basic records; companies usually need an accountant.
For a focused comparison of portage salarial versus micro- options, see our detailed guide: portage salarial vs micro-entreprise.
How to register and launch your business the right way
Begin your registration with URSSAF to set a clear administrative foundation for your activity. Register online: pick your category (commerçant, artisan, or profession libérale), declare the main activity, add a French business address, and choose monthly or quarterly declarations.
Practical URSSAF steps
Create your file in minutes. Select the declaration rhythm that matches your cash flow and time management for the year. Link URSSAF to the tax portal so social security registrations flow to health and pension systems.
SIREN/SIRET and invoicing
INSEE sends your SIREN/SIRET in roughly one month. Until then, invoice with the wording “SIRET en cours d’attribution”. Keep a simple example file to track APE/NAF codes and switch dates on documents.
Non‑EU founders: visa preparation
For an entrepreneur residence card, compile a solid business plan showing market, clients, and 3–5 year profitability. Include proofs of resources and a client pipeline tailored to your prefecture.
« A clear registration protects your income and helps companies accept your first contracts. »
- Open a dedicated account early to simplify reconciliations.
- Prepare a devis, invoice template, and basic contract before you start work.
- Set calendar reminders for declaration deadlines to avoid estimated charges.
For practical steps on starting business life in France, see our guide for freelancer france.
Smart money setup: bank account, accounting, and admin hygiene
Start with a separate account and simple tools to protect your cash flow. If your turnover exceeds €10,000 in a year, French law requires a distinct account for business receipts and expenses. It can be a personal current account specifically dedicated to the activity; it does not have to be a paid professional plan.
Choosing a bank and lightweight tools
Compare options practically. La Banque Postale and AXA offer traditional branches and service, while Qonto and N26 provide flexible online plans. Check monthly fees, card and transfer limits, and the total amount of transactions you expect in the first year.
For daily records, use simple tools. MyAE.fr helps micro‑entrepreneurs with bookkeeping and Toggl captures billable time. These tools keep invoices and timers aligned for accurate billing.
Basic routine that protects you
- Open a separate account before you hit €10,000 to simplify audits and client trust.
- Weekly reconcile income and expenses; monthly review your cash runway.
- Quarterly set aside taxes and social contributions to avoid surprises.
- Save PDFs of invoices and receipts, tagged by client and month.
| Need | Practical choice | Cost note | When to use |
|---|---|---|---|
| Simple free option | Personal current account dedicated to activity | Often free | Yearly turnover under €10,000 or early stage |
| Mainstream bank | La Banque Postale / AXA | Branch fees may apply | Want in‑person support and local presence |
| Online business fintech | Qonto / N26 | Monthly plans, scalable | Higher transaction volume; remote management |
| Accounting & time tools | MyAE.fr / Toggl | Low subscription fees | Accurate billing, simplified accounting |
Example: if your business grows, keep fees proportional to turnover and avoid services you don’t use in the first year. If complexity rises, consider a company structure and professional accounting advice.
« Keep business and personal spending separate; it strengthens your image and eases checks. »
For a practical checklist on managing finances as a freelancer in France, consult our guide on financial management for freelancers.
Invoicing, VAT, and payment terms that keep cash flowing
A reliable invoice process keeps payments timely and reduces disputes with clients. Clear invoices protect your business and make taxes and accounting simpler.
Mandatory invoice elements and practical checklist
Include: invoice date, service date, description, unit prices, discounts, totals, client name and address, your company name and SIREN/SIRET.
If you are a tradesperson, add the mandatory 10‑year insurance details. Issue estimates (devis) and reference them on the invoice to avoid disputes.
VAT thresholds and TVA wording
Micro- businesses below thresholds must add: “TVA non applicable, article 293 B du CGI”. Typical limits: services ≈ €34,400; sale of goods ≈ €85,800. Above these, register for VAT and charge TVA on invoices.
Payment terms, late fees, and company clients
- Default legal term: 30 days from delivery.
- State late fees and collection costs to encourage prompt payment.
- Request purchase orders from a company and align invoice references to speed approvals.
- Reconcile payments to your account weekly and follow up before due dates.
| Need | What to show | Why it matters |
|---|---|---|
| Micro- exemption | TVA non applicable, article 293 B du CGI | Avoids VAT misclassification |
| Company client | Purchase order number on invoice | Speeds approval and payment |
| Long projects | Milestone or partial invoices with dates | Protects cash flow |
For a practical template and more invoicing examples, see our invoicing guide.
Taxes and social security contributions: pay the right amount at the right time
Managing social charges and tax choices early keeps your cash flow steady. Declare turnover on time via URSSAF—monthly or quarterly—to calculate social security contributions and avoid surprises.
Declaring revenue, paying social charges, and versement libératoire choices
Micro‑entrepreneurs pay a single social contribution rate around 22% of turnover plus about 0.20% for professional training. Budget each month for these amounts to keep social security contributions current.
Versement libératoire lets you pay income tax as you invoice. It smooths cash flow but may cause overpayment if your total taxable income is low. Check thresholds before you opt in.
Income tax timing, business tax (CFE), and avoiding surprises at year‑end
Income tax is declared annually through the tax portal unless you use versement libératoire. Keep simple accounting records so you can estimate the amount to set aside each month.
CFE is a local business tax set by your municipality and based on premises and turnover. Review your assessment early and contest any errors to avoid an unexpected bill at year-end.
Health insurance, sick/parental leave, and unemployment differences
After 12 months of activity, state health insurance covers paid sick and parental leave based on your declared averages. Consider a private mutuelle to reduce co‑pays and extend cover.
Note the gap on unemployment: micro status does not grant standard employee unemployment, while portage salarial connects you to employee unemployment and retirement systems.
- Declare revenue on time via URSSAF and budget for social charges.
- Consider versement libératoire only after checking thresholds and projections.
- Keep simple monthly accounting to earmark funds for tax and business tax (CFE).
- Save records for several years to support any review of income tax or social security contributions.
« Plan monthly provisions for taxes and contributions to avoid end-of-year cash stress. »
Conclusion
A clear operational routine—status, bank, invoices—turns early uncertainty into steady progress.
Choose the company form that fits your risk and growth: micro- for speed, a company for protection, or portage salarial to reduce admin. For many sole trader people, this decision defines how you balance freedom and security.
Open a dedicated bank account and keep a clean account of income and expenses. Clear invoicing, firm payment terms, and watching VAT limits on sale of goods and services make taxes and cash flow predictable.
With disciplined routines and the right structure, starting business in France becomes sustainable: you focus on high-value work and clients while social security and tax obligations stay under control.
FAQ
Who can freelance in France today?
EU/EEA and Swiss nationals can start activity freely. Non‑EU residents need a residence permit authorizing independent work or a specific entrepreneur/work visa. Holders of a long‑stay talent or profession libérale permit may also operate, provided their carte de séjour lists self‑employment. Always check your permit’s conditions before invoicing.
Can my current visa or employment status prevent me from freelancing?
Yes. Student visas, some temporary stays, or work contracts often restrict outside professional activity. If your status does not explicitly allow independent work, you must seek authorization or change permit type to avoid fines, refusals of social rights, or immigration issues.
What are the main differences between micro‑entreprise, EURL and SASU?
The micro‑entreprise offers simplified bookkeeping and flat social rates but has turnover limits and limited deductible expenses. EURL (single‑member SARL) and SASU provide limited liability, more tax flexibility and deductible costs, and suit higher turnover or when you need a clearer separation between personal and business assets.
When is portage salarial a good option?
Portage salarial fits professionals who want employee‑style protections (payroll, social security, unemployment eligibility) while keeping freelance autonomy. The portage company handles admin and invoices; you focus on clients. It’s ideal for testing markets or when you need quicker access to social benefits.
Are there professions that can’t use the micro‑entreprise regime?
Yes. Regulated professions (certain medical, legal, and architectural roles, for example) often require professional qualifications, registrations with an order, or specific corporate forms. In such cases you may need a different legal status and professional insurance to practice legally.
How do I register with URSSAF and begin declaring activity?
Register online via autoentrepreneur.urssaf.fr or guichet‑entreprises.fr: declare your activity, provide a business address and ID, then choose monthly or quarterly declarations for social contributions. Keep proof of registration and follow deadlines to avoid penalties.
What if I start working before receiving my SIREN/SIRET?
You can invoice with “SIRET en cours d’attribution” while waiting for the official number, but keep registration proof and record the date of activity start. Once you receive your SIREN/SIRET, update invoices and client files if requested.
How can a non‑EU founder obtain a work visa to launch a business in France?
Plan a viable business case, show sufficient funds, and provide a professional project with market research. Depending on nationality and investment, apply for a Talent Passport (business creator) or another entrepreneur visa at the French consulate. Documents typically include a detailed business plan, bank statements, and proof of accommodation.
Is a separate bank account required for my business?
For micro‑entrepreneurs with annual receipts above €10,000 for two consecutive years, a dedicated account for professional activity is mandatory. For other statuses (EURL, SASU) banks and accountants strongly recommend a separate business account to simplify accounting and protect personal assets.
Which tools help with accounting and time tracking?
Use invoicing and accounting software such as QuickBooks, Wave, or FreeAgent, and time trackers like Toggl or Harvest. Choose tools that export reports for URSSAF and tax filings, keep digital copies of receipts, and help demonstrate professional activity during audits.
What must appear on a French invoice?
Mandatory elements include your name and business status, SIREN/SIRET, client details, invoice number and date, description of goods or services with quantity and unit price, VAT rate if applicable, payment terms, and your bank details (IBAN/BIC). Missing items can delay payment or trigger disputes.
When do I have to charge VAT (TVA) and what are the thresholds?
VAT applies when your turnover exceeds specific thresholds: for services and professions, the limit differs from goods sales. Under threshold, you may benefit from franchise en base de TVA and add wording like “TVA non applicable, article 293 B du CGI” on invoices. Check current thresholds annually as they change.
How should I set payment terms and handle late payments?
State clear payment terms on invoices (e.g., 30 days net), include penalties for late payment and a fixed recovery indemnity as allowed by law. For companies as clients, request purchase orders or payment schedules for large projects and consider advance deposits to secure cash flow.
How do I declare revenue and pay social charges in France?
Declare your turnover to URSSAF monthly or quarterly. Social charges are calculated on declared revenue and vary by activity. Micro‑entrepreneurs can opt for versement libératoire to pay income tax as a percentage of turnover at the same time as social contributions, simplifying payments.
When is versement libératoire advantageous?
The versement libératoire can benefit taxpayers with modest income who want predictable, regular payments that settle income tax alongside social contributions. It depends on your personal tax rate; calculate both scenarios (standard income tax vs. libératoire) or consult an advisor.
What taxes should I expect beyond income tax?
Besides income tax, anticipate social contributions, and local business taxes such as the Cotisation Foncière des Entreprises (CFE). CFE liabilities depend on your business location and turnover; new micro‑entrepreneurs may benefit from an initial exemption period in some municipalities.
How do health insurance, sick leave and unemployment work for independent workers?
Health coverage is through the French social security system (CPAM) with contributions based on earnings. Sick leave benefits and parental leave differ from salaried employees and often require minimum contribution periods. Traditional freelancers typically lack guaranteed unemployment benefits unless covered by specific schemes or prior salaried employment; portage salarial can bridge this gap.
