TLDR: The micro-entrepreneur scheme in France is reserved for individuals, with strict turnover limits (€170,000 for sales, €70,000 for services) and sectoral exclusions (financial, real estate activities, etc.). Exceeding the thresholds results in an automatic switch to the standard tax regime.
Eligibility conditions for the micro-entrepreneur scheme
The micro-entrepreneur scheme is only accessible to individuals carrying out commercial, craft, or professional activities. Legal entities are excluded, except for EURLs (single-member limited liability companies) where the sole member is an individual managing the business. This exception has been in effect since December 11, 2016.
Activities excluded from the micro-entrepreneur scheme
Certain activities are incompatible with the micro-entrepreneur scheme, including financial, banking, insurance, management, and real estate rental activities. These exclusions are strict and allow no exceptions.
Turnover limits
The micro-entrepreneur scheme imposes maximum annual turnover thresholds: €170,000 for sales activities and €70,000 for service activities. Exceeding these thresholds results in an automatic switch to the standard tax regime from January 1 of the following year.
Consequences of exceeding the thresholds
If the turnover thresholds are exceeded, the micro-entrepreneur automatically switches to the standard tax regime. This involves full accounting and payment of income tax according to the progressive scale.
Optional flat-rate payment of income tax
Micro-entrepreneurs can opt for the flat-rate payment of income tax, subject to conditions. The taxable income of the penultimate year must be less than or equal to the upper limit of the second bracket of the income tax scale of the previous year.
Compatible and incompatible activities
In addition to general exclusions, certain specific activities are incompatible with the micro-entrepreneur scheme, such as real estate asset management or certain regulated professional activities. EURLs opting for corporate tax are also excluded.