Graphic design in the evenings, private lessons at weekends or a first online shop: many projects start solo, with little turnover and the wish to get going quickly. The micro-entrepreneur status answers that need. Setting up is quick, contributions follow the turnover actually collected and bookkeeping stays light.
You still need to know the rules. Here is what a micro-entreprise actually is, the conditions to qualify, how contributions and income tax are calculated, VAT, the strengths and limits of the regime, and the habits to adopt day to day. All the figures quoted are those published by service-public.gouv.fr for 2026.
Key points at a glance:
- The micro-entreprise status refers to a sole proprietorship (entreprise individuelle) under a simplified tax and social regime. Auto-entrepreneur and micro-entrepreneur refer to the same status.
- The regime applies as long as turnover does not exceed €203,100 for the sale of goods, or €83,600 for services and liberal professions, over the two previous years.
- Social contributions are a percentage of turnover: 12.3% for sales, 21.2% for commercial and craft services, 25.6% for a non-regulated liberal profession.
- Income tax is calculated after a flat allowance of 71%, 50% or 34%, or through the versement libératoire. The VAT franchise applies up to €85,000 of sales or €37,500 of services.
What is the micro-entrepreneur status?
By definition, a micro-entreprise is a sole proprietorship whose turnover does not exceed a certain amount. What does that mean in practice? An activity carried out alone, with no articles of association to draft and no share capital to put up, and with setup and management simpler than for a company.
Unlike a company, a sole proprietorship has no separate legal personality: it is attached to the person who runs it. One person can therefore hold only one sole proprietorship. The activity can be commercial, craft or liberal, and several activities can be carried out within the same micro-entreprise.
Micro-entreprise or auto-entreprise: what is the difference?
None in substance. Auto-entrepreneur and micro-entreprise are two names for the same regime: the first stuck in everyday language, the second is the official term. As for the legal form, the micro-entreprise remains a sole proprietorship that benefits from the micro tax regime and the micro social regime.
Personal and business assets
The legal status of the micro-entreprise automatically separates two sets of assets. Business assets cover what is used for the activity, such as premises or the business account. Personal assets cover the rest, for example savings or a second home. This separation protects personal assets from business debts. There is one limit: if tax or social obligations are not met, the tax office and social security bodies can recover what they are owed from both sets of assets.
The conditions of the micro-entreprise regime
The conditions mainly concern turnover. For 2026 income to fall under the micro-entreprise regime, turnover over the two previous years must not have exceeded €203,100 for the sale of goods and accommodation, or €83,600 for services and liberal professions. If the threshold is exceeded two years in a row, the business moves to a real tax regime (régime réel).
A single year above the threshold is therefore not enough to leave the regime. You can also choose a real regime voluntarily, even below the thresholds, for example when actual costs are high. The table below brings together the 2026 figures published by service-public.gouv.fr.
| Activity | Turnover threshold | Social contributions | Tax allowance | Versement libératoire |
|---|---|---|---|---|
| Sale of goods | €203,100 | 12.3% | 71% | 1% |
| Commercial or craft services (BIC) | €83,600 | 21.2% | 50% | 1.7% |
| Non-regulated liberal profession (BNC) | €83,600 | 25.6% | 34% | 2.2% |
| Regulated liberal profession under the Cipav (BNC) | €83,600 | 23.2% | 34% | 2.2% |
Key takeaway: the micro regime applies below €203,100 of sales or €83,600 of services. It takes two consecutive years above the threshold to leave it.
Social contributions: a rate on turnover
Micro-entreprise contributions do not depend on profit but on the turnover collected. Every month or every quarter, depending on the choice made at setup, the micro-entrepreneur declares turnover to Urssaf and pays a fixed percentage: 12.3% for sales, 21.2% for commercial or craft services, 25.6% for a non-regulated liberal profession and 23.2% for a liberal profession under the Cipav. The declaration is made online, on the Urssaf portal for auto-entrepreneurs, and payment follows straight away.
An example makes the calculation concrete. A consultant providing commercial services collects €30,000 in the year: they pay 21.2% of that sum, or €6,360 in contributions. With no turnover, nothing is due. This feature of the status is reassuring at the start, but it has a flip side: without turnover, social rights do not build up either. You can opt for minimum contributions to keep social protection even in months without income.
Income tax: allowance or versement libératoire
For a micro-entrepreneur, the default tax treatment relies on a flat allowance. The tax office deducts from turnover a percentage meant to cover costs: 71% for sales, 50% for commercial services and 34% for liberal professions, with a minimum of €305. The remaining amount is added to the household’s other income and taxed at the progressive income tax rates, with instalments collected at source.
The regime offers an option: the versement libératoire. Income tax is then paid together with contributions, at a fixed rate of 1% for sales, 1.7% for other commercial activities and 2.2% for liberal professions. For the consultant at €30,000, that comes to €510 of income tax for the year. The option is open if the household’s reference taxable income two years earlier does not exceed a ceiling: €29,579 for a single person, more for a couple or with children.
VAT: the franchise en base
Below certain thresholds, a micro-entreprise does not charge VAT. The status gives access to the VAT franchise (franchise en base de TVA) as long as the previous year’s turnover stays below €85,000 for sales, or €37,500 for services. During the year, the increased thresholds are €93,500 and €41,250: above them, VAT applies from the first day they are exceeded.
Under the franchise, invoices carry the mention “TVA non applicable, article 293 B du CGI”. The business cannot reclaim the VAT paid on its purchases either, which matters for an activity that invests heavily in equipment.
Advantages and limits of the status
The advantages of the micro-entreprise explain its popularity among the self-employed, but the regime also has its limits. Both are worth weighing before you start:
Micro-entreprise, SASU or EURL?
The micro-entreprise is not the only way to work for yourself. The SASU and the EURL are single-shareholder companies: they require articles of association, share capital, however small, and full accounts. In return, they deduct their actual costs and are not limited by the micro-entreprise thresholds. The table below reproduces the comparison published by service-public.gouv.fr.
| Criterion | Micro-entrepreneur | SASU | EURL |
|---|---|---|---|
| Shareholders | None | 1 | 1 |
| Director | The entrepreneur | President | Manager (gérant) |
| Share capital | None | Free amount | Free amount |
| Taxation | Income tax | Corporate tax, option for income tax | Income tax, option for corporate tax |
| Director’s social regime | Self-employed (travailleur non salarié) | Treated as an employee (assimilé salarié) | Self-employed if the manager is a shareholder |
In practice, the micro-entreprise works well for testing an activity or working with low costs. When turnover approaches the thresholds or costs become significant, the question of a company arises, and a chartered accountant can help run the numbers.
Running a micro-entreprise day to day
How does a micro-entreprise work once it is set up? Four habits are enough to stay on track, and they take little time when adopted from the first client.
Every month or every quarter, declare the turnover collected on the Urssaf website. Contributions and, where applicable, the versement libératoire are collected on that basis.
Record each payment received with its date, amount, client and payment method. A sales activity also keeps a purchases register.
Each invoice carries the mandatory mentions, including the Siren number and, under the franchise, the VAT mention.
An account dedicated to the activity becomes mandatory above €10,000 of turnover two years in a row, and from the start for a commercial activity.
In short: a regular declaration, an up-to-date sales ledger, complete invoices and a dedicated account are enough to run a micro-entreprise without unpleasant surprises.
Vivid for micro-entrepreneurs
Vivid opens online business accounts for micro-entrepreneurs and sole traders, with a business account for freelancers. An ID document, the tax number and a proof of activity are usually enough for the application. The application takes about 10 minutes online, and opening usually takes between 10 minutes and 1 hour. The freelancer plans start with Standard at €0/month, then Prime at €6.90, Pro at €18.90 and Pro+ at €41 per month billed annually, or €8.90, €24.90 and €50 billed monthly.
Vivid in brief: an online business account from €0/month on the Standard plan, a French IBAN, invoicing included and sub-accounts to prepare for Urssaf payments.
A business account for your micro-business
With Vivid, the payments of your activity have their own account: French IBAN, invoicing included and sub-accounts. The Standard plan is €0/month and you apply online.
Frequently asked questions
What is the micro-entreprise status?
It is a sole proprietorship under a simplified tax and social regime, as long as its turnover stays below certain thresholds. In short: setup without articles of association or capital, contributions proportional to turnover and light bookkeeping.
What is the difference between micro-entreprise and auto-entreprise?
There is none. Micro-entreprise and auto-entreprise refer to the same regime: auto-entrepreneur is the former name still in common use, micro-entrepreneur the official term. The legal form remains the sole proprietorship.
What are the micro-entreprise thresholds in 2026?
For 2026 income, turnover over the two previous years must not exceed €203,100 for the sale of goods, or €83,600 for services and liberal professions. It takes two consecutive overruns to leave the regime.
How much in contributions does a micro-entrepreneur pay?
A percentage of the turnover collected: 12.3% for sales, 21.2% for commercial or craft services, 25.6% for a non-regulated liberal profession and 23.2% for a profession under the Cipav. With no turnover, no contributions are due.
How is a micro-entrepreneur’s income tax calculated?
By default, a flat allowance of 71%, 50% or 34% depending on the activity is deducted from turnover, and the rest is taxed at the progressive income tax rates. As an option, the versement libératoire applies a fixed rate of 1%, 1.7% or 2.2% to turnover.
Does a micro-entrepreneur charge VAT?
Not while they benefit from the VAT franchise, meaning below €85,000 of sales or €37,500 of services over the previous year. Their invoices then carry the mention “TVA non applicable, article 293 B du CGI”.
Do you need a dedicated bank account as a micro-entrepreneur?
Yes in two cases: above €10,000 of turnover for two consecutive calendar years, and from the start for a commercial activity. Below that, a separate account is still recommended to track income clearly and prepare the periodic declarations.
This article is general information only and is not legal, tax or accounting advice. The thresholds and rates quoted are those published on service-public.gouv.fr for 2026 and may change. Payment services are provided by Vivid Money S.A., an electronic money institution authorised by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg, whose French branch is supervised by the Autorité de contrôle prudentiel et de résolution (ACPR).
