New Legal Status for Sole Proprietors in France
On January 22, 2025, the French Ministry of Economy and Finance announced the creation of a new legal status for sole proprietors, the “entrepreneur individuel” (EI). This status will replace the existing “auto-entrepreneur” (AE) status and will be available to all sole proprietors, regardless of their activity or turnover.
Key Features of the New Status
The new EI status will offer several advantages over the current AE status, including:
- Simplified registration: Sole proprietors will be able to register their business online in just a few steps.
- Reduced administrative burden: EIs will be exempt from filing certain tax and social security returns.
- Increased flexibility: EIs will have more flexibility in choosing their tax regime and social security coverage.
- Improved protection: EIs will benefit from the same liability protection as other types of businesses.
Eligibility Requirements
To be eligible for EI status, sole proprietors must meet the following requirements:
- Be a natural person who is resident in France.
- Have a professional activity that is not prohibited by law.
- Have an annual turnover of less than €170,000 (excluding VAT).
Transition from AE to EI
Current AEs will have until December 31, 2025, to transition to the new EI status. During this transition period, AEs will continue to benefit from the same tax and social security advantages as before.
Benefits of the New Status
The new EI status is expected to provide several benefits to sole proprietors, including:
- Reduced costs: The simplified registration process and reduced administrative burden will save sole proprietors time and money.
- Increased efficiency: The new status will make it easier for sole proprietors to manage their business and comply with their legal obligations.
- Improved reputation: The EI status will provide sole proprietors with a more professional image and enhance their credibility.
Conclusion
The creation of the new “entrepreneur individuel” status is a significant step forward for sole proprietors in France. This new status will provide a number of advantages, including simplified registration, reduced administrative burden, increased flexibility, and improved protection. It is expected to make it easier for sole proprietors to start and operate their businesses, and to improve their overall business environment.
Le nouveau statut d’entrepreneur individuel
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economie.gouv.fr a new article on 2025-01-22 08:31 titled “Le nouveau statut d’entrepreneur individuel”. Please write a detailed article on this news item, including any relevant information. Answers should be in English.
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