Moving From Micro-Entreprise to a Company
Is your business growing, are your costs rising, or are you nearing the thresholds? Moving to a company can increase your net income and protect your personal assets. A Viseeon chartered accountant compares both options on your real figures and organises the transition.
- Free first 20-minute conversation
How do you know if the micro-entreprise is holding you back?
Your real expenses are high
Under the micro regime, social contributions are calculated on collected turnover without an expense allowance. Income tax uses a flat-rate expense allowance unless you opt for the final withholding payment. If your costs are high, compare this with the actual-expenses regime.
You are nearing the thresholds
Above €203,100 excl. VAT (TVA) for sales or €83,600 excl. VAT for services for two consecutive years, you leave the micro regime. Better to choose your structure than have it imposed.
You are about to charge VAT (TVA)
Above the VAT exemption thresholds, you charge VAT (TVA). Part of the appeal of the micro-entreprise then disappears, and bookkeeping gets more complicated anyway.
You want to bring in partners or invest
Welcoming a partner, borrowing to invest, separating risk from your personal assets: a company is often better suited.
When should you move to a company?
There is no single threshold. Three signals should alert you:
- Your actual expenses exceed the flat-rate allowance of the micro-entreprise.
- Your turnover is approaching the ceilings: €203,100 excl. VAT (TVA) for the sale of goods, €83,600 excl. VAT for services in 2026. The regime is only lost after two consecutive years above the limit, on 1 January of the following year (Service Public Entreprendre, F32353).
- You want to smooth your income: in a company subject to corporate tax (IS), you can leave part of the profit in the business.
The best time is often 1 January, to start a full financial year. The decision is therefore made in the autumn.
What does moving to a company change in practice?
| Micro-entreprise | Company subject to corporate tax (IS) (SASU, EURL taxed at IS) | |
|---|---|---|
| Social contribution base | Collected turnover, without an expense allowance | SASU: remuneration; EURL subject to IS with an owner-manager: remuneration plus the share of dividends above the statutory 10% threshold |
| 2026 contribution rates | 12.3% (sales), 21.2% (BIC services), 25.6% (non-regulated liberal professions) | Depending on the director's status: employee-equivalent (SASU) or self-employed (majority manager) |
| Deduction of actual expenses | No for taxable profit: flat-rate allowance, except under the final withholding option | Yes, for eligible expenses |
| Tax on profits | Director's personal income tax | Corporate tax (IS): 15% up to €42,500 of profit (SME conditions), 25% above |
| Dividends | Not applicable | SASU: standard 31.4% PFU in 2026 or election for progressive income tax; EURL subject to IS: separate social treatment for the share subject to contributions |
| Bookkeeping | Simplified | Balance sheet, income statement, tax package, filing of accounts |
Sources: Service Public Entreprendre F36232, F23575, F37777 and A18796. For an owner-manager of an EURL subject to IS, the 10% social threshold is calculated using share capital, share premiums and shareholder current-account amounts under the statutory rules. The excess is subject to self-employed social contributions, so the overall PFU does not apply uniformly.
Moving to a company adds fixed costs: full bookkeeping, formalities, annual meeting. It is only worthwhile if the gain exceeds these costs.
How does the transition work with Viseeon?
Costed diagnosis
Comparison of micro, EURL and SASU on your figures: available net income, social protection, structure costs.
During a dedicated appointment
Choosing the switch date
Often 1 January. Your accountant times the end of the micro-entreprise and the start of the company.
In autumn for a 1 January switch
Setting up the company
Articles of association, share capital, legal notice, registration on the one-stop shop (guichet unique). Possible transfer of clients or equipment.
Depending on the chosen switch date
Closing the micro-entreprise
Cessation declaration, last turnover declaration, handling of VAT (TVA) and stock.
On the switch date
Bookkeeping and pay
Setting up the company's bookkeeping, choosing salary or dividends, tax calendar.
From the first month
What happens if I exceed the micro-entreprise thresholds?
A single year above the limit doesn't take you out of the regime. After two consecutive years, you move to the standard (réel) regime on 1 January of the following year, and the simplified micro social contribution regime ends.
What are the micro-entreprise thresholds in 2026?
€203,100 excl. VAT (TVA) of turnover for the sale of goods, €83,600 excl. VAT for services.
Can a micro-entreprise be converted into a company?
A sole proprietorship cannot be converted directly into a company: you create a company, then contribute or sell the business to it, before closing the sole proprietorship. Your accountant chooses the least costly method.
SASU or EURL after a micro-entreprise?
The SASU gives the president employee-equivalent status. In an EURL, the manager falls under the self-employed social security scheme. The choice depends on your pay, the social protection you want and your dividend policy.
What is the corporate tax rate?
25%, with a reduced rate of 15% on the first €42,500 of profit for SMEs that meet the turnover and share-ownership conditions.
How are dividends taxed in 2026?
By default at the flat tax (PFU) of 31.4%: 12.8% income tax and 18.6% social levies. An option for the progressive scale is possible.
Will I lose the VAT (TVA) exemption by moving to a company?
Not automatically. The exemption depends on turnover, not on legal form. A company below the thresholds can benefit from it.
When should the decision be made?
Ideally in autumn, for a switch on 1 January. This leaves time to set up the company and prepare the closing of the micro-entreprise.
Is a company more expensive to run?
Yes: full bookkeeping, annual accounts, tax package, approval of accounts. The move is only useful if the saving on your contributions and tax exceeds these costs.
Talk through your move to a company
Free first 20-minute video conversation. Confirmation within 1 business hour.