The French auto-entrepreneur scheme was introduced by minister Hervé Novelli under the 2008 law to modernise the economy, and came into force in 2009. It aims to encourage small-scale start-ups and entrepreneurship in France. Auto-entrepreneurs are not required to register with the Registre du Commerce et des Sociétés (Chamber of Commerce and Businesses) or the Repértoire des Métiers (Trade Directory). Registration can be done online, at a Centre de Formalités des Entreprises, at chambres de commerce, chambres des métiers, or URSAFF centres.

Auto-entrepreneurs pay tax and social contributions at a flat percentage rate of turnover (previously, many would-be entrepreneurs were deterred from setting up their own businesses because of high charges and legal obligations in France). Charges are only due where there is income: if turnover is zero, nothing is owed. Most auto-entrepreneurs are also exempt from VAT, as long as their income remains below a certain threshold.