In France, what English speakers often call a sole proprietorship is usually called an entreprise individuelle, or EI. It means that you run a business in your own name, without creating a separate company such as an EURL, SARL, SASU or SAS. Micro-entreprise or autoentreprise also falls under entreprise individuelle “umbrella”.
This structure is commonly used by freelancers, consultants, artisans, small traders, teachers, coaches, online sellers and many other independent professionals. It is often the simplest way to start working legally as an independent business owner in France.
Since 2022, an entrepreneur individuel automatically has a professional estate and a personal estate. In principle, professional creditors can only pursue the professional assets used for the business, although there are exceptions, especially in cases such as fraud, serious tax/social security issues, or if the entrepreneur gives up this protection for a creditor.
EI is not the same as a company #
The biggest difference from havinga company is that an EI is not a separate legal person. You and your busuiness are legally very closely connected. The business is registered, has a SIREN/SIRET number, issues invoices, declares income and pays social charges, but there are no company shares and no separate company capital.
A company, such as a SASU, EURL, SARL or SAS, is different. It has its own legal personality. The company owns its assets, signs contracts, has shareholders or associates, and usually requires more formalities: statutes, share capital, legal decisions, annual accounts, and more structured management.
In practical terms, an EI is usually simpler and cheaper to run, but a company can be more suitable when you want to bring in partners, separate ownership clearly, sell shares, raise investment, or build a more structured business.
Micro-entreprise vs régime réel #
One common confusion is this: micro-entreprise is not a separate legal form. A micro-entrepreneur is an entrepreneur individuel using a simplified tax and social regime.
So the legal structure is Entreprise individuelle
And the tax/social regime can be Micro-entreprise or Régime réel
The micro-entreprise regime is designed to be simple. You declare your turnover monthly or quarterly, and your social charges are calculated as a percentage of your turnover. Accounting obligations are lighter. The important point is that under micro-entreprise, you do not deduct your real expenses to calculate your taxable profit. Instead, the tax system applies a forfaitary allowance depending on the type of activity. This is why micro-entreprise can be very attractive when your costs are low, but less interesting when you have significant expenses.
Under the régime réel, the business is taxed on its real profit: income minus deductible business expenses. This means more accounting work, but it can be much more appropriate if you have rent, equipment, subcontractors, materials, travel costs, software, professional insurance, or other significant expenses.
To learn more about each of the regimes, please refer to the following articles: micro-entreprise or EI under regime reel.
