Become a Self Employed Service Provider in 2021

Thanks to its simplicity, the auto-entrepreneur regime appeals to many self-employed. And this, whatever their activity. Thus they can choose to sell goods or offer services. In this article, we are only interested in self-employed service providers.

What is Service Delivery?

Unlike merchandise sales, a self-employed person providing a service does not sell physical goods to their customers. On the other hand, he will sell his knowledge. Therefore his time and his knowledge are the essence of his activity.

Depending on the nature of its services, it may fall under the BIC (industrial and commercial profit) or BNC (non-commercial profit) regime. To help you find out if your activity falls under one of these plans, here are some examples:

  • BIC : barber, VTC or taxi driver, travel agent, pastry chef, restaurateur, florist, electrician, leather worker, etc.
  • bnc : Real Estate Agent, Web Developer, Business Coach, Private Teacher, Pharmacist, Architect, Accountant, etc.

Build a Self Service Business

To form a service provider business, a self-employed individual must first declare his or her activity to the Center for Business Formalities (CFE). Depending on whether his activity is commercial, craft or eclectic, he must send his file to the correct service:

  • Chamber of Commerce and Industry (CCI) for the provision of services of a commercial nature;
  • Chamber of Trades and Crafts (CMA) for services of an artisan nature.
  • URSSAF for services of a non-professional or generous nature.

Following this announcement, the auto-entrepreneur providing services must be registered with the Business Directory (RM) or the Business and Company Directory (RCS). From that very moment, the auto-entrepreneur will get his SIRET number.

Other steps for auto-entrepreneur providing personalized services

In addition to the above procedures, self-employed persons providing personal services will also have to obtain the approval of the Departmental Council of their place of activity.

To be able to exercise, this request for authorization must be made as soon as the auto-enterprise is created.

Specific regulations for certain activities

Some services are regulated. Here are some examples:

  • Diploma required: eg hairdressing or aesthetics
  • Holder of an office: Judicial officer, notary or auctioneer having the qualifications of a public officer or ministerial officer.
  • Compliance with ethical obligations set by orders: This pertains to all regulated liberal professions such as lawyers or nurses.
  • Professional Insurance: Building professionals must take ten years of insurance to cover each site.

These requirements vary depending on the business. Therefore it is necessary to check all the necessary conditions before starting your service provision activity as a self-employed person.

Turnover of Self Employed Person Providing Services

self employed roof

Because of its simplicity, the status of auto-entrepreneur attracts many Frenchmen. But not everyone can choose this status. And for good reason, the government has set a turnover limit beyond which it is not possible to be self-employed in providing services. For 2021, this ceiling is set at €72,600 in annual turnover.

Apart from this ceiling, another ceiling has been prescribed to allow auto-entrepreneurs to benefit from VAT exemption. Thus, self-employed workers whose annual turnover does not exceed €36,500 do not have to invoice VAT.

social charges

The distinction between a self-employed person providing a service or a self-employed person selling goods takes on its full meaning while paying the social fee.

Depending on whether your services are covered by BNC (non-business profit) or BIC (industrial and commercial profit), the amount of charges to be paid varies.

As for social contribution, they are still 22%.

On the other hand, the amount of income tax varies:

  • If you have opted for Withholding Tax: IR is 1.7% for BIC and 2.2% for BNC.
  • If you have opted for micro governance: The standard discount rate is 50% for BIC and 34% for BNC.

Duties and Responsibilities of the Service Provider

Duty of advice and information

The self-employed person providing services has the knowledge that the customer lacks. As such, the self-employed must advise their clients on a given solution. Upstream, this requires that all requirements be defined in order to best meet them.

It is also better that the auto-entrepreneur be transparent throughout the mission. That is, he tells what he is doing and why.

performance obligation

Like any professional, the auto-entrepreneur must fulfill the mission assigned to him. And this, within the indicated time frame. For greater transparency about the mission and its outline, it may be wise to draw up a contract for the provision of services.

Is a service contract mandatory?

A service provision contract is not mandatory for a self-employed person. Nevertheless, it is highly recommended. This then makes it possible to formalize all the rights and obligations of each party: namely the self-employed individual and his client. Thus, you define the framework for the execution of the contract and the customer agrees to pay you for the service provided.

5,000 € . case of services of more than

Although the status of auto-entrepreneurs has been simplified, self-employed workers providing services worth more than €5,000 will have to complete some additional formalities. Thus, they have to provide the following documents:

  • URSSAF Certificate of Vigilance;
  • certificate of registration ;
  • extract RCS or RM registration;
  • A quote citing the information below:
    • EA name;
    • registered address ;
    • registration number ;
    • Recognition for personal services.

All these parts must be less than 6 months old.

Some Ideas for Service Delivery Activities as a Self-Employed Person

Do you want to be self-employed in the provision of services? Here are some craft ideas:

As a self-employed individual, the choice of services is almost endless. Based on your skills, all you have to do is choose.

general question

Can a self-employed person providing service also sell goods?

Yes absolutely. For example, Barber also sells shampoos. If this is your case, you need to determine what your main activity is.

Is it possible to be a self-employed person and an employee at the same time?

Yes, provided that your activity does not compete with that of your employer, and that no employment contract prevents you from doing so.

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