France Launches New Entrepreneurial Status: “Entrepreneur Individuel”
Date: February 6, 2025
Source: economie.gouv.fr
Summary:
The French government has introduced a new legal status for entrepreneurs, the “Entrepreneur Individuel” (EI), which simplifies and streamlines the process of starting and operating a business in France.
Key Features of the Entrepreneur Individuel:
- Simplified Business Creation: Entrepreneurs can now register their businesses online or through a simple declaration to the Tax Administration (Urssaf).
- Automatic Tax Regime: EIs automatically benefit from a simplified tax system, which includes a flat income tax rate and simplified VAT obligations.
- Separation of Personal and Business Assets: The EI status provides automatic separation of personal and business finances, offering financial protection to entrepreneurs.
Benefits of the Entrepreneur Individuel:
- Reduced Administrative Burden: The simplified business creation process and tax regime significantly reduce the time and effort required to start and operate a business.
- Financial Security: Separation of personal and business assets protects entrepreneurs from personal financial liability in case of business failure.
- Flexibility: The EI status is flexible and allows entrepreneurs to transition to other business structures (e.g., SARL, SAS) in the future if desired.
Target Audience:
The EI status is primarily intended for:
- Micro-entrepreneurs with low turnover (less than €176,200 per year).
- Freelancers, consultants, and sole traders.
- Individuals seeking an easy and cost-effective way to start a business.
Implementation:
The Entrepreneur Individuel status became effective on January 1, 2025. Entrepreneurs can register as EIs through the following channels:
- Online at www.impots.gouv.fr/portail/particulier/creation-entreprise
- By submitting a registration declaration (Cerfa P0 CMB) to the Urssaf
Additional Resources:
For more information on the Entrepreneur Individuel status, please refer to the following resources:
- Official website of the French Tax Administration: www.impots.gouv.fr/portail/particulier/creation-entreprise
- Website of the French Association of Micro-Entrepreneurs: www.auto-entrepreneur.fr
- Detailed summary document from the French Ministry of Economy: www.economie.gouv.fr/statut-entrepreneur-individuel
Le nouveau statut d’entrepreneur individuel
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