Greentech is on the rise. It embodies the fundamental changes that our society will have to adopt in order to include its evolution in sustainable development. Many auto-entrepreneurs are surfing the wave of green business. This sector is experiencing tremendous growth in various areas of our national and global economy. At all levels, citizens, public authorities, and private companies, awareness are growing. We offer you an overview of this status which blows like a wind of freedom in the sails of the company.
Auto-entrepreneur status: the benefit of simplified formalities
When you want to get into a green business, self-employed status is an efficient solution. The auto-enterprise is an individual company (IE) that benefits from ultra-simplified administrative formalities. The process of creation and management of the activity are facilitated for this status and allow the auto-entrepreneur to focus on the essentials: his development and his success.
Who can become a self-employed person?
Any adult can embark on the adventure of micro-enterprise, provided that it is neither under guardianship nor under curatorship. She must also not have been sentenced to a ban on running a business or practicing as a self-employed entrepreneur. It is necessary to have a postal address in France. Finally, the worker must be of French nationality or be a national of the European Union.
However, this status is not compatible with certain activities. When a person depends on a social scheme such as the MSA, he cannot benefit from this micro-enterprise status. The same is true for certain artistic activities or those relating to real estate VAT. Regulated liberal professions (not affiliated with Cipav) and majority managers of a company are automatically excluded from this entrepreneurship solution. Ditto for self-employed non-salaried workers already attached to URSSAF.
Terms related to turnover
Whether it is a craftsman, a merchant, an individual exercising a liberal profession or a complementary activity, the auto-entrepreneur can freely exercise as a micro-enterprise. However, its annual figure must not exceed certain limits:
- €72,600 for a service provision activity;
- €176,200 for the sale of goods or accommodation services.
A VAT exemption applies in certain configurations. For a service provision activity, the turnover must not exceed €36,500 per year. For the sale of goods, the turnover must remain below the threshold of €94,300 per calendar year.
Simplified taxes and social charges
Income tax is simplified thanks to the discharge payment of income tax The income tax is thus paid at the same time as the social contributions, each month or at the end of each quarter. Specific IR and social charges rates apply depending on your sector of activity. As far as charges are concerned, here are the current rates:
- Activities related to the purchase and resale, the sale of food to be consumed on site and accommodation services: 12.8%
- Rental of classified furnished accommodation: 6%
- Provision of services and unregulated liberal professions: 22%
- Regulated liberal professions: 22.2%
The most reassuring is undoubtedly the fact that if you generate 0 € of turnover over a period, you do not pay any contribution. It is a security if you want to take a break in your activity or if your salaried activity requires you to mobilize more than usual. The other statutes require a deduction of social charges even in the event of turnover at 0 €.
Combine employee and auto-entrepreneur statuses
It is quite possible to be self-employed and employed at the same time. Getting into a green business or just a business can present some uncertainties as to the generation of turnover. At first, it is reassuring to benefit from the status of employee in any company in order to guarantee a fixed salary.
When you are an employee and want to create your micro-enterprise, you should know that it is necessary to inform your hierarchy if there are specificities in your contract such as an exclusivity clause.
When the auto-entrepreneur activity is exercised in secondary school, it can complement other statuses than that of employee. Thus, a student or a retiree can very well decide to set up their micro-enterprise. A salaried assimilated manager is also entitled to start self-employment. Of course, a civil servant can also decide to try the adventure provided that his status allows it.
If your activity goes beyond the limits of a micro-enterprise, you can opt for the status of a simplified joint-stock company .
Guaranteed social protection
Auto-entrepreneurs have access to social security cover which includes several elements. In terms of health, they receive daily allowances in the event of illness or maternity leave. They are still entitled to family allowances. These latter benefits are identical to those enjoyed by employees in the public and private sectors. In the event of professional income below a certain threshold, the CAF can pay the activity bonus to supplement the resources of the entrepreneur.
As for retirement, auto-entrepreneurs contribute to the basic retirement plan. Social cover extends to disability and death insurance. Auto-entrepreneurs benefit from the same treatment as self-employed workers with regard to the coverage of beneficiaries.
The organizations to which the auto-entrepreneurs are attached are the following:
- For retirement: Retirement insurance
- For health insurance: the CPAM
- For the recovery of social security contributions: URSSAF
The activities associated with the exercise of a regulated liberal profession come under the Cav.
However, there is a flaw in the social protection of the auto-entrepreneur. The latter does not contribute to benefit from any unemployment benefits in the event of cessation of activity. It can therefore be quite interesting to keep a salaried job in a private or public company until your micro-enterprise finds its profitability.
Some obligations related to the micro-enterprise
Any auto-entrepreneur activity must be declared on the URSSAF website. You have 90 days between the start of your activity and your first declaration of turnover. When you make a declaration from the mobile application or the site dedicated to the management of micro-enterprises, you have 90 days to modify any information relating to the declaration of your CA.
Certain categories of activities require additional elements. Thus, if you work as a trader in the Greentech sector, you will need to register with the Trade and Companies Register (RCS). Other activities require specific qualifications.
It is mandatory to take out professional liability insurance and to join a mediation system. Finally, if you achieve a turnover of more than €10,000 over two consecutive years, it is mandatory to open a professional or personal account dedicated to your self-employed activity.
The status of auto-entrepreneur has undeniable advantages for starting an activity in Greentech. It confers great administrative flexibility on the entrepreneur, who can concentrate on the development of his project and test its compatibility with the sector he covets. The micro-enterprise is still an ideal solution for initiating professional retraining without taking substantial risks, provided that the financial investment is limited. Subsequently, depending on the development of his green business, the entrepreneur may consider switching to a different status such as SAS or SARL.