What is an Auto Entrepreneur?

Question: Hi Alex, I have a small gardening business in the UK and have always wondered if I can set this type of business up in France, we were thinking about buying a holiday home at first but after our first viewing trip with Cle France we saw that is we spend a little bit more we can get a lot more in France and move over full time. But... we would have to work and therefore was thinking about running the same sort of business in France.

A friend told me to start small and mentioned becoming 'auto entrepreneur' but I thought he was talking about being a car mechanic! LOL so can you tell me What is an auto entrepreneur?

Thanks, Dominic.

Answer: Hi Dominic, being an 'auto entrepreneur' is actually the most popular business set-up in France and is actually a 'tax status' or 'regime' rather than a legal stand point. You are actually an 'Enterprise Individuelle' or self employed / sole trader who chooses to be taxed as an 'auto entrepreneur'. Tax is based and worked out on your turnover, which cannot exceed 32,900 euros (in 2016 but this goes up a little each year) HOWEVER you cannot claim expenses against tax or charge VAT or recover it on purchases paid.

So your gross turnover is taxed.

However it is a very simple system to operate when first arriving in France as you don’t have to produce accounts, Yippe! just proof of income and you have to pay as you go on a monthly basis. not many Ex-Pats setting up business set up Ltd companies as they are much more complicated when paying tax and social charges for both those within the business. But either way it’s essential to get some advice before setting up your business, particularly if your French is not that good yet.

Cle France have lots of local contacts so just ask for more details when you are ready.