Start freelancing in France

It might not be one of the first countries you’ll find when deciding to set up your freelance business, yet, in France, you can set up a small business or even be self-employed, under the micro-entreprise regime with a fairly simple procedure and live some of that Vie en Rose romance, if you wish.

Where to get started

If you're just starting out as a freelancer in France, the first thing you'll need to do is register as an auto-entrepreneur with the Centre de Formalités des Entreprises (CFE):

• It’s important to rely on the right Centre de Formalités des Entreprises (CFE). Most freelancers will probably register with URSSAF, which is the CFE for intellectual services like translators or web designers, marketers or business consultants in general. To find the right CFE for your type of business, click here.

• You will need to send this form to the appropriate CFE or to the official auto-entrepreneurs Online Portal, here. A photocopy/scan of your ID will also be required when you register.

All this can be done online and typically takes about 15 days to process. After registering, you’ll have to wait for your documents to be processed before receiving your SIREN, a unique, nine-digit identification number for your business. Once registered, you'll also be given a SIRET (consisting of a SIREN number plus another five-digit number. The SIREN number identifies the location of your business), which you'll need to use when filing your tax returns.

You also get an APE (Activite Principale de l’Entreprise) or NAF code that identifies the main activity of your business. Each business in France uses these codes, which consist of four digits and a letter. Don’t know your APE? Here’s a complete and updated list in French and English.

Where to declare, what, and how much

If you decide to set up your freelance business in France as a self-employed professional, you can choose to pay your taxes under the standard system or under the régime micro-entreprises.

Which works better for you will depend on your income and the type of business you run.

Micro-enterprise tax regime

The eligibility rules for this regime vary depending on the nature of your business, so we recommend you get advice from your local tax office before guessing. Yet, you’ll most likely be providing a non-regulated service and fall under the Micro-BIC (Trade/service-based business) category. The maximum turnover allowed for this type of business is €72,500 and the taxable base in this case is 50%.

Some micro-entrepreneurs also need to pay business property tax (CFE) on their turnover. More about this in the French government’s guide.

If you decide to be taxable under the micro-enterprise regime, you won’t be able to claim any deductions against your tax bill, as you already benefit from the credits above.

Standard tax regime

If you decide to register for taxation under the standard regime, you might be able to deduct some of your expenses from your profits and these won’t count towards your taxable income.

If you conduct business as an individual, you’ll only need to make one online tax declaration for both taxes and social security. You’ll either need to fill out form 2031 or 2035 (if using the standard tax regime) or form 2042C (if using the micro-enterprise regime).

If your business is liable for corporate tax, you’ll need to file an online tax return within April 30th of the following year. Payments are quarterly in most cases but new companies (or those who paid less than €3,000 the previous year) can qualify for annual payments.

VAT

VAT is charged on the sale of certain goods and services, at a rate of 20%, though reduced rates of 10%, 5.5%, and 2.1% are available for some products.

The good news is that small businesses in France are not required to pay VAT (TVA in French) if they make less than €34,600 (for service-based companies), and €86,900 (for commercial businesses).

Social security

As a self-employed worker in France, you’ll need to make your social security contributions. While you can choose to make your payments on a monthly or quarterly basis, the amount you need to pay will vary depending on the structure of your company.

If you choose the standard accounting system, once a year, you’ll need to submit an online return titled Déclaration sociale des indépendants (DSI). Luckily most social security contributions are tax-deductible.

Fines

Failure to file your income tax return on time can result in a penalty fine of up to 10% but luckily there is a 45-day period before the date of collection.

You'll be charged interest at 0.4% per month if you submit your corporate tax return late, plus a penalty of 10%. The penalty for late payments starts at 5% of the tax owed. Those found guilty of tax fraud can face fines of up to 80%.

What to write on quotes/invoices?

A devis is a quote and a facture is an invoice.

More information

For more information on taxes for freelancers in France, be sure to check out the Centre de Formalités des Entreprises website (www.cfe.urssaf.fr). The CFE website provides detailed information on registration, tax filing, and business structure options. Additionally, the website provides information on self-assessment, VAT, and business structures. This is an essential resource that every freelancer should have on hand.

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