Do you live abroad and want to set up a micro-business? Provided you have an address in France, it's perfectly possible to set up your micro-business from abroad, provided you have a work permit if you live in a country that requires one, outside the Schengen area.
What are the conditions for setting up a micro-business from abroad?
Non-residents can set up a micro-business from abroad under two conditions.
A French domicile
The first condition concerns the domicile of the micro-enterprise. Under no circumstances may it be domiciled in the micro-entrepreneur's foreign country of residence, but must be domiciled in France.
While micro-entrepreneurs living in France usually domicile their micro-business at their personal address, this is not possible for expatriates. The latter can therefore use the address of a relative, without any specific administrative steps on the part of this relative if he or she only hosts one company.
It is also possible to use a French domiciliation company, which can offer other services in parallel, such as mail forwarding, telephone permanence, secretarial services or legal assistance.
For domiciliation alone, the rate depends in part on the prestige of the address used, which can play a role in the credibility of the micro-business. On average, you should expect to pay between 15 and 150 euros per month.
A work permit if required by the country of residence
Depending on the micro-entrepreneur's country of residence, a second condition may be added: a work permit.
If the micro-entrepreneur is an expatriate in a Schengen country, no work permit is required, as Schengen citizens are authorized to live and work freely in all Schengen countries. It is therefore possible to set up a micro-business without any additional formalities.
On the other hand, if the French expatriate resides in a country outside the Schengen area, he or she may need to be in possession of a visa expressly authorizing him or her to work, and therefore to set up a micro-business. For further information, please contact the local authorities.
Invoicing, VAT, taxes: what obligations does an expatriate micro-entrepreneur have?
The French tax authorities consider that an expatriate setting up a micro-business domiciled in France has economic interests in France. Consequently, he or she will be considered a French tax resident and will have to pay taxes in France, even if he or she stays abroad for more than 6 months a year.
In the absence of a tax treaty with France, micro-entrepreneurs may be taxed twice, once in France and once in their country of residence.
French rules apply to the payment of taxes and contributions. Social security contributions must be paid monthly or quarterly to Urssaf, and the cotisation foncière des entreprises (CFE) once a year for sales over 5,000 euros.
The VAT exemption threshold is identical, whether the micro-entrepreneur operates in France or abroad. Below €34,400 excl. tax in annual sales, with a higher threshold of €36,500 excl. tax, micro-entrepreneurs do not have to invoice or pay VAT.
However, micro-entrepreneurs invoicing goods or services to foreign customers must obtain an intra-Community VAT number, whether or not they are above the exemption threshold.
As far as invoicing is concerned, French rules apply whether the micro-entrepreneur lives in France or abroad.
Please note: invoices must be drawn up in French, and goods or services sold must be invoiced in euros as well as in the currency of the customer's country, taking into account the exchange rate of the European Central Bank on the day the invoice is issued. Accounts must be kept in French and in euros.
Finally, with regard to the bank account, while the law requires micro-entrepreneurs to havea current account dedicated to their business if their sales exceed 10,000 euros for 2 consecutive years, they are under no obligation to open this account in a French bank.