top of page

Freelancing in France: Should You Register a Business or Stay Independent?

  • Jan 17
  • 4 min read

Updated: Feb 12

Freelancing in France is an attractive option for professionals seeking flexibility, autonomy, and access to a thriving market. Whether you’re working in creative industries, IT, consulting, or other freelance professions, one critical question arises: Should you register a business or stay independent?


This article explores the pros and cons of each approach, key considerations, and legal and tax implications, helping you make an informed decision that aligns with your goals and work style.



Freelancing in France: The Basics

France offers freelancers several paths to operate legally:

  1. Registering as a Micro-Entrepreneur: A simplified regime designed for freelancers and small business owners.

  2. Registering as a Company: Formal structures like an SARL (Limited Liability Company) or SAS (Simplified Joint-Stock Company).

  3. Staying Independent Without Registration: Operating as a self-employed professional without registering a formal business.

Each option has distinct benefits, tax obligations, and administrative requirements.


Option 1: Registering as a Micro-Entrepreneur

The micro-entrepreneur (auto-entrepreneur) regime is one of the most popular choices for freelancers in France due to its simplicity and flexibility.


Pros:

Simplified Administration:

  • Easy registration process.

  • Minimal bookkeeping and accounting requirements.


Lower Taxes:

  • Fixed percentage taxes based on turnover.

  • Exemption from VAT (if turnover is below €85,800 for goods or €34,400 for services).


Social Security Benefits:

  • Access to healthcare, retirement benefits, and other social security protections.


Cost-Effective:

  • No significant upfront costs or share capital requirements.


Cons:

Turnover Limits:

  • Revenue capped at €85,800 for goods and €34,400 for services.


Limited Deductions:

  • Cannot deduct expenses from taxable income.


Liability:

  • Full personal liability for debts, unless specific protections are in place.


Suitable For:

  • Freelancers with modest turnover.

  • Professionals seeking a straightforward, low-cost entry into freelancing.


Option 2: Registering as a Formal Business

Registering a formal business, such as an SARL or SAS, provides more flexibility and scalability for freelancers with ambitious goals or higher revenue.


Pros:

Limited Liability:

  • Protects personal assets from business debts.


Higher Revenue Potential:

  • No turnover caps, allowing for business growth.


Tax Benefits:

  • Ability to deduct business expenses from taxable income.


Professional Credibility:

  • A formal business structure enhances trust with clients and partners.


Flexibility in Profit Distribution:

  • For SAS structures, profits can be distributed as dividends, which are taxed differently than salaries.


Cons:

Complex Administration:

  • Requires more paperwork, accounting, and compliance with corporate regulations.


Higher Costs:

  • Initial registration fees and ongoing maintenance costs (e.g., accounting, legal fees).


Corporate Taxes:

  • Subject to corporate income tax (25% in 2025) and additional social charges.


Suitable For:

  • Freelancers with higher revenue or plans to scale.

  • Those needing a professional image for clients in industries like consulting or tech.

  • Freelancers looking to hire employees or partners.


Option 3: Staying Independent Without Registration

Operating without registering as a business is a simpler option, often chosen by freelancers just starting out or testing the waters.


Pros:

No Initial Setup:

  • Avoids the time and cost of business registration.


Simplicity:

  • Fewer administrative and reporting requirements.


Cons:


Legal Risks:

  • Operating without formal registration may breach French laws, especially for consistent, ongoing work.


No Social Security Benefits:

  • No access to healthcare, retirement, or unemployment protections tied to the French system.


Limited Client Appeal:

  • Larger clients may prefer to work with registered businesses for tax and compliance reasons.


Suitable For:

  • Short-term or occasional freelancers.

  • Professionals testing the market before committing to formal registration.


Tax Implications for Freelancers in France


Micro-Entrepreneurs:

  • Income Tax: Fixed percentage based on turnover:

    • 12.8% for commercial activities.

    • 22% for professional services.

  • Social Security: Contributions range from 12.8% to 22%, depending on activity type.

  • VAT: Exempt below turnover thresholds (€85,800 for goods, €34,400 for services).


Registered Businesses:

  • Corporate Tax:

    • 25% on profits.

    • Dividends taxed separately for company owners.

  • Social Charges: Employer contributions on salaries and profits.

  • VAT: Mandatory for businesses with turnover exceeding thresholds.


Non-Registered Freelancers:

  • Income taxed as personal income, with no deductions for business expenses.

  • Lack of access to VAT exemptions or other business tax benefits.


Key Factors to Consider

Revenue Expectations

  • If your income is expected to exceed the micro-entrepreneur limits, registering a formal business structure is essential.

  • For modest income, the micro-entrepreneur regime is cost-effective and simple.


Client Requirements

  • Larger clients may require you to issue invoices with a registered business identification number (SIRET).


Liability Concerns

  • If personal liability is a concern, a limited liability structure (SARL, SAS) is advisable.


Growth Plans

  • Freelancers planning to hire employees, expand, or reinvest should consider a formal business structure.


Ease of Administration

  • The micro-entrepreneur regime is ideal for those seeking minimal administrative responsibilities.


Why Choose B2B Hub for Freelancing Support in France?

Navigating the complexities of freelancing in France requires expert guidance. B2B Hub offers tailored services to help you determine the best path for your freelancing career.


Services Offered by B2B Hub:

  1. Business Registration: Assistance with setting up a micro-entrepreneur, SARL, or SAS.

  2. Tax and Compliance Support: Guidance on tax filing, social security contributions, and VAT registration.

  3. Legal Advisory: Advice on liability protection and client contracts.

  4. Market Insights: Understanding client expectations and industry-specific requirements.


Why Partner with B2B Hub?

  • Local Expertise: Deep knowledge of French freelancing laws and tax regulations.

  • Tailored Solutions: Personalized advice to fit your professional goals and income level.

  • Comprehensive Services: From registration to ongoing compliance, we cover all aspects of freelancing.


Freelancing in France offers immense potential, but choosing the right structure is critical to your success. Whether you prefer the simplicity of staying independent, the low-cost micro-entrepreneur regime, or the scalability of a formal business, careful planning will help you make the most of your opportunities.


B2B Hub offers comprehensive support to ensure your freelancing journey in France is smooth and successful.


For inquiries, contact us at +44 770 018 3107, visit our website at b2bhub.ltd, or email us at reg@b2bhub.ltd. Let us help you thrive in the French market.

 
 
 

Yorumlar

bottom of page