Micro-entrepreneur and subcontracting in France: 2026 rules, risks and how to stay compliant

Updated 25 May 2026 — Reviewed by Samuel Hayot, chartered accountant (expert-comptable), Hayot Expertise Paris.

The combination of micro-entrepreneur status and subcontracting affects tens of thousands of freelancers, consultants and craftspeople in France. The model is legitimate and widely used. But it rests on precise rules — Law n° 75-1334 of 31 December 1975 on subcontracting, articles 50-0 and 102 ter of the General Tax Code (CGI) for the micro regime, and article L1221-1 of the Labour Code for the boundary between self-employment and employment — that many ignore until the first audit or the first dispute.

Direct answer: a micro-entrepreneur (auto-entrepreneur) can freely work as a subcontractor or engage subcontractors. The relationship must be formalised in a written contract, a URSSAF vigilance certificate must be provided from 5,000 € excl. VAT, the micro-BNC/BIC 2026 ceilings must be respected, and genuine operational autonomy must be demonstrable to avoid reclassification as an employment relationship.

This guide is informational. Your personal situation deserves a specific review with a chartered accountant before any contractual or tax decision.

Law n° 75-1334 of 31 December 1975 on subcontracting defines subcontracting as the operation by which a contractor entrusts another contractor — the subcontractor — with the performance of all or part of the contract concluded with the project owner (maître d'ouvrage).

For a micro-entrepreneur, this covers two distinct situations:

• Acting as subcontractor: you carry out an assignment on behalf of a company that is itself a service provider to an end client. You have no direct relationship with that end client.
• Engaging a subcontractor: your own activity exceeds your capacity, so you delegate part of the work to a third party. Important: the amounts you pay to that subcontractor do not reduce your micro-enterprise turnover.

The micro regime prohibits neither of these configurations. But it does not protect you from the associated legal risks any more than any other structure would.

To frame the creation or restructuring of your business, see our guide setting up your business with a chartered accountant.

The written contract: a non-negotiable foundation#

The 1975 Act imposes a written contract for all subcontracting in the construction sector. In other sectors, a written form is not legally mandatory — but it is practically indispensable. A verbal contract is almost impossible to prove.

The subcontracting contract must specify:

• the exact nature and scope of the assignment;
• the price or the pricing method;
• deadlines and delivery milestones;
• the obligations of each party;
• liability conditions and termination terms.

Our reading: a vague contract is often worse than no contract at all. It creates an appearance of structure without protecting either party. Focus on defining the expected result rather than dictating the method of execution.

The vigilance certificate: the 5,000 € excl. VAT threshold#

Once a service contract reaches 5,000 € excluding VAT, the principal is legally required under articles L8222-1 to L8222-5 of the Labour Code to request a vigilance certificate (attestation de vigilance) from the subcontractor. Issued by URSSAF via the net-entreprises.fr portal or the autoentrepreneur.urssaf.fr portal, this document certifies that the service provider is current on all social security declarations and payments.

The principal's obligations:

• obtain the certificate before work begins, or within 15 days of signing the contract;
• renew it every 6 months for as long as the contract is running;
• retain a copy for 5 years after the contract ends.

Failure to comply exposes the principal to a fine of 1,500 € (3,000 € for repeat offences) and may result in the principal being declared jointly and severally liable for the subcontractor's unpaid social contributions and taxes.

Declaring the subcontractor to the project owner (construction sector)#

In the building sector, the 1975 Act imposes an additional obligation: the principal must declare its subcontractors to the project owner (maître d'ouvrage) and obtain their approval. An undeclared subcontractor may exercise a right of direct payment against the project owner for amounts above 600 € (threshold to be verified against the version currently in force). This rule applies regardless of whether the subcontractor operates under the micro regime or not.

Carrying out work as a subcontractor does not alter the micro-enterprise regime thresholds. However, every amount invoiced as a subcontractor is counted towards your turnover.

(Thresholds in force for 2026 — source: articles 50-0 and 102 ter CGI. To be verified in the event of legislative changes during the year.)

Critical point: if you sub-contract part of your assignment, the amounts paid to your own subcontractor are not deductible from your micro-enterprise turnover. You declare the full amount invoiced to your principal, and you pay your social contributions on that gross figure. This mechanism can make the micro regime economically unfavourable as soon as you routinely sub-contract a significant share of your workload.

Field case — IT consultant: a developer operating as a micro-entrepreneur invoices 90,000 € to an end client and passes 30,000 € on to a subcontractor. He exceeds the 83,600 € ceiling and is moved to the standard tax regime — even though his net margin is 60,000 €. This gap between gross turnover and actual margin is the most common trap we encounter in business-creation files.

The VAT basic exemption regime (franchise en base, article 293 B CGI) exempts the micro-entrepreneur from charging VAT, provided they remain below the following thresholds:

(2026 thresholds — to be verified on impots.gouv.fr, subject to change by Finance Acts.)

What this means in a subcontracting context: if your principal is VAT-registered, they will not be able to reclaim VAT on your invoices — which is often acceptable for intellectual-services assignments. However, the moment you exceed the exemption threshold, you must charge VAT immediately from the first euro of the month in which the threshold is breached. The risk is discovering the breach late and having to retrospectively remit VAT that was never collected from your principal.

The legal basis: article L1221-1 of the Labour Code#

Article L1221-1 of the Labour Code defines the employment contract as the agreement by which a person undertakes to work for, and under the direction of, another person in exchange for remuneration. Case law makes clear that the subordination link — not the label on the contract — determines the true legal nature of the relationship.

A micro-entrepreneur can work exclusively for a single client, over several years, without being an employee — provided that the actual conditions of performance demonstrate genuine autonomy.

The criteria applied by the courts#

The underestimated risk: reclassification does not require all of these criteria to be present simultaneously. A single strong indicator — such as having been assigned a company email address for three years — may be sufficient to convince an employment tribunal (conseil de prud'hommes). The court assesses the situation as a whole.

In the event of reclassification: the principal is ordered to pay arrears of salary, paid-leave entitlement, a reclassification indemnity, employer social contributions over the entire period, and potentially damages. For the micro-entrepreneur, the micro regime is voided retroactively.

To explore questions of structure and legal form in depth, our article on société de fait sheds light on the related risks of mischaracterising a commercial relationship.

Our practice note: the evidence of independence is built before an audit, not during one. Here are the elements we systematically advise clients to document.

Checklist for micro-entrepreneur subcontractors:

• Keep all quotes sent to other prospects or clients, even unsigned ones
• Invoice with your own sequential numbering, your own letterhead, and your own pricing
• Maintain a professional website and a business email address in your own name or your company's name
• Use your own working tools (computer, software, vehicle)
• Never use a badge or a named IT access account belonging to your principal
• Organise your own working schedule and place of performance freely
• Set out your working method in writing, however briefly, in each contract
• Pursue continuing professional development and new skills on your own initiative

It is entirely possible to operate a micro-enterprise while also being an employee. This combination is legal, subject to:

• any exclusivity clause in your employment contract (to be checked);
• the absence of direct competition with your employer's activity, unless specifically authorised;
• any obligation to inform your employer of independent activity required under your applicable collective agreement.

In a subcontracting context, this combination is common: a salaried manager who takes on complementary assignments in the evenings or at weekends. The specific risk is providing services through your micro-enterprise to your own employer or to a direct competitor. This arrangement is legally fragile and may create a conflict of interest.

See also our guide on ACRE 2026 for business creators if you are starting an independent activity alongside employment.

Turnover earned through subcontracting is subject to the standard micro regime: flat-rate deduction (34% for BNC, 50% for BIC services) applied to the declared turnover, followed by taxation at the personal income-tax scale, or under the liberatory withholding option (versement libératoire) if that option has been elected and the prior-year-two income is below the ceiling.

The key trade-off — micro regime vs standard regime: if you engage a subcontractor and their fees represent a significant share of your turnover, switching to a standard tax regime (EURL or SASU) allows you to deduct those actual costs. The micro regime does not. This structural limit is frequently what triggers the transition to a company structure that we assist clients through.

• Electronic invoicing: the progressive rollout of France's mandatory e-invoicing reform (PPF/PDP) will eventually apply to micro-entrepreneurs. Monitor announcements on impots.gouv.fr and adapt your tools accordingly.
• Mid-year threshold breach: if you exceed 83,600 € from subcontracting services during the year, you exit the micro regime from 1 January of the following year (or immediately if you breach the tolerance threshold). Plan the transition in advance.
• Social contributions on gross turnover: your social contributions are calculated on invoiced turnover, not on amounts actually received. If your principal pays late, you are still required to declare and pay contributions on the invoiced amount.

In 2026, subcontracting as a micro-entrepreneur is a viable model provided you keep control of three points: a precise written contract, a vigilance certificate delivered on time from 5,000 € excl. VAT, and genuinely documented autonomy in the execution of your assignments.

This article is informational. It does not replace a personalised analysis of your situation by a qualified professional. The thresholds and rates cited are those applicable in 2026 and may change.