Since January 1st 2009, ‘auto-entrepreneur’ status applies to natural persons who set up or already possess a sole proprietorship, for the purpose of exercising a commercial or artisanal activity or one of the professions (with the exception of certain activities), as a main or complementary activity, and whose sole proprietorship fulfils the conditions of the micro-enterprise fiscal category, and who opt for VAT exemption.
This status offers less demanding regulations for starting up the business, as well as a simplified method for calculating and paying social security contributions and income tax. Auto-entrepreneurs benefit from:
- a simplified social scheme
- exemption from the requirement of registration with the business register for commercial professionals, or the trade register for artisans; however, the auto-entrepreneur who creates an artisan activity with main title, has to join the RM.
- exemption from VAT;
- the option of a simplified tax scheme (payment in discharge of income tax) and exemption from porperty tax of firms for the first three years after establishment of the business.
The professions falling under the aegis of the Inter-profession Body for Retirement Planning and Insurance (CIPAV) and those launching a business after January 1st 2009 can also benefit from auto-entrepreneur status. Since January, 2011, the auto-entrepreneur can benefit from EIRL (individual entrepreneur with limited liability) status by allocating to his professional activity a specific patrimony separated from his personal patrimony. However he preserves the fixed tax and social regime connected to the auto-entrepreneur status.