How to Register a Sole Proprietorship (Entreprise Individuelle) in France

In France, setting up as an entreprise individuelle (EI) is a popular path for freelancers, consultants, and side hustlers. It offers an incredibly streamlined and accessible way to launch your own business.

The process is fast and mostly digital with many people registering online. While the administrative burden is minimal, you still need to choose the right tax and social contribution regime and remain mindful of turnover limits.

The main challenges are understanding the simplified system’s thresholds and contribution rates. The benefits are equally clear: no capital requirements, minimal accounting, quick setup, and access to French social protection.

Disclaimer: This article is for informational purposes only and is not a substitute for legal advice. Please always check official sources or seek professional guidance before taking action.

What is a sole proprietorship in France?

The entreprise individuelle status is a streamlined legal and tax framework for sole proprietors in France. It allows people to start a business with minimal investment and risk while also simplifying registration, reporting, and social contributions.

How does an entreprise individuelle work in France?

Entreprise individuelle vs other business structures in France

Step-by-step guide: How to register as a entreprise individuelle in France

Step 1: Check eligibility

You must be at least 18, reside in France (or be an EU resident), and not be legally restricted from starting a business. Non-EU individuals must hold a permit allowing self-employment.

Step 2: Choose your business activity

Your business activity type (commercial, artisanal, or liberal) determines which administrative body oversees your business. The main administrative bodies are the Chambre de Commerce et d'Industrie (CCI), Chambre de Métiers et de l'Artisanat (CMA), and the Unions de Recouvrement des Cotisations de Sécurité Sociale et d'Allocations Familiales (URSSAF).

Step 3: Gather required documents

Prepare:

• Valid ID or passport

• Proof of French address (e.g., utility bill)

• For non-EU nationals: valid residence permit authorizing self-employment

Step 4: Register online

Complete your application via the One-stop shop for Business Formalities. The registration is free, but some fees may apply depending on your business activity. After you submit your application, initial processing is completed within 24 hours, and your application will then be reviewed over the next 3-5 working days.

Step 5: Select tax and social contribution regime

You may opt for simplified taxation through the micro-enterprise regime, or you may choose régime réel.

To be eligible for the micro-enterprise regime, your annual turnover must be lower than €188,700 for sales of goods and provision of accommodation. For services and liberal professions, your annual turnover must be lower than €77,700. Income tax and social contributions are calculated as a fixed percentage of your gross turnover. The rates vary depending on your business activity.

If you exceed micro-enterprise turnover thresholds, you are required to register for the régime réel. The thresholds for trade and housing provision is €840,000, and the threshold for services under BIC is €254,000. Income tax and social contributions are calculated based on net profit.

Step 6: Post-registration obligations

Once registered, you can legally invoice and open a business bank account. You must declare your turnover monthly or quarterly and pay contributions accordingly. Be sure to monitor your turnover to stay under applicable thresholds.

Financial and tax obligations for entreprise individuelles in France

Turnover thresholds & VAT exemption: For 2025, the annual limits are €188,700 for commercial activities and €77,700 for services. Under these thresholds, you're exempt from VAT. If exceeded, VAT applies from the first day of the following month.

Social contributions: You are required to pay social contributions to fund health insurance, pension, family benefits, and social charges. Your rate depends on your business type and tax regime.

Income Tax: As an entreprise individuelle, your income is integrated into your personal tax return. Alternatively, you may choose the "versement libératoire", an income tax that is paid on a “pay-as-you-earn” basis alongside social contributions.

Recordkeeping: Under the micro-enterprise regime, you are required to maintain simple records of receipts, invoices, and expenses. If your annual turnover exceeds €10,000, you are required to maintain a separate business bank account to process business income and expenses.

Under the régime réel, you are required to maintain comprehensive accounting records that includes an annual balance sheet and profit/loss statement, annual inventory, record of financial movements affecting the business, and deductible expenses. Due to the complexity of accounting requirements under this regime, it’s common to hire a professional accountant.

Launch your contracting career and stay compliant with Deel

Registering as an entreprise individuelle gives you independence, but it also means handling taxes, invoices, and records on your own. Deel’s all-in-one platform helps you manage obligations without the stress. With Deel, you can:

• Automate invoicing and expense tracking with essential bookkeeping tools
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• Spend your earnings in USD with the Deel Card
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• Enjoy contractor perks from 150+ partners

Stay independent, without the admin overload. Sign up to Deel for free today.