Auto-entrepreneur limited to 2 years?

By Valérie Aston on 27 May 2013 · Viewed 5220 times · Questions

Despite the recommendations of the General Inspectorate of Social Affairs (IGAS) and the Inspectorate of Finance (IGF), Sylvia Pinel, minister for Crafts, still plans to limit the auto-entrepreneur to 2 years for its main activity, with secondary activities limited to 15,000 euros. After the 2 year limit auto-entrepreneurs will either have to create a entreprise individuelle, SARL, EURL or cease trading.

Artisans’ representatives were not pleased with her recommendations - they've been pushing for the auto-entrepreneur system to be limited to one year for artisans.

Auto-entrepreneur secondary activity limited to 15,000 euros

Auto-entrepreneur secondary activities, i.e. activities that represent less than 50% of earned income, would not be affected by the 2 year limit. They would however be limited to a maximum turnover of 15,000 euros. Should an auto-entrepreneur exceed the turnover limit of 15,000 euros they would have to take a training course.

At this point it's not clear what would happen when a secondary activity turnover exceeds the 15,000 euros limit. For example, would the auto-entrepreneur be compelled to switch to entreprise individuelle, SARL, EURL, get a period of grace, or perhaps be allowed continue trading (with restrictions) as an auto-entrepreneur. We'll have to wait for the details to come out in the next few months.

Sylvia Pinel also mentioned that she wanted to improve consumers’ safety through tougher registration controls, i.e. checking that required qualifications are held and that insurance obligations are met.

She will present a bill to the Conseil des Ministres before the end of July and then in September to the Parliament to be made law. It's worth remembering that things can still change and that the limits mentioned above are not law yet.

Valerie Lemiere: Start Business in France

About the author: Valérie Aston

I've been helping people who want to start or already have a small business set up in France since 2009. After graduating from a Master of Business Administration (MBA) degree, I worked as a senior marketing consultant in the UK and France for various International companies. I worked as a conseillère en création d'entreprises (senior business advisor) for BGE here in France and run this independent business on a daily basis.