The New Status of Individual Entrepreneur
On May 15, 2022, the French government launched the new status of individual entrepreneur (EI) to simplify and secure the business creation process for self-employed individuals. The EI status replaces the former auto-entrepreneur and micro-entrepreneur statuses and offers several advantages to eligible individuals.
Key Features of the New EI Status:
- Simplified Registration Process: Individuals can register as EIs online in just a few minutes, without the need for any administrative formalities.
- Flexible Income Thresholds: EIs can earn up to €176,200 per year in turnover from both commercial and non-commercial activities. This threshold is higher than the previous limits for auto-entrepreneurs and micro-entrepreneurs.
- Reduced Social Security Contributions: EIs benefit from reduced social security contributions, which are calculated as a percentage of their actual income. The contribution rate depends on the individual’s age, activity sector, and income level.
- Simplified Tax Declaration: EIs declare their income and pay their taxes online through a dedicated platform. They are not required to submit a separate tax return.
- Access to Social Protection: EIs are entitled to basic social protection, including health insurance, maternity leave, and retirement benefits.
Eligibility Criteria:
To qualify for the EI status, individuals must meet the following criteria:
- Be a natural person over the age of 18
- Not be an employee of another company
- Not have been previously bankrupt or under liquidation
- Have an eligible business activity
Excluded Activities:
Certain activities are excluded from the EI status, including:
- Liberal professions (e.g., doctors, lawyers, accountants)
- Agricultural activities
- Real estate transactions
- Insurance and financial services
- Public procurement contracts
Benefits of the EI Status:
The EI status offers several benefits to self-employed individuals, including:
- Reduced administrative burden: The simplified registration process and online tax declaration system save time and effort.
- Lower costs: The reduced social security contributions and simplified tax system can help reduce operating expenses.
- Increased flexibility: The higher income thresholds and lack of administrative formalities provide more flexibility for entrepreneurs to grow their businesses.
- Enhanced social protection: EIs have access to basic social protection, providing them with peace of mind and security.
Additional Information:
For more information about the new EI status, individuals can visit the official website of the French Ministry of Economy and Finance at: www.economie.gouv.fr/entreprises/nouveau-statut-entrepreneur-individuel
Le nouveau statut d’entrepreneur individuel
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