Officially launching your business on the scented candle and wax melt market takes more than a good idea: you need to put together a solid application and follow precise administrative steps.
From gathering your supporting documents (ID, business address, no criminal record) to the optional ones that depend on your situation (declaration of exemption from seizure, diplomas for regulated activities, CAPE contract), every item helps your registration go through quickly, so that you can start promoting your products in no time. In this article, we focus on setting up a micro-enterprise, as it is the most popular status when you are starting out and comes with few constraints.
Good to know
This article is written for the French context. However, some points are based on European directives, notably VAT, extended producer responsibility and the recognition of craft qualifications, and therefore apply, in adapted forms, across all EU countries. Lastly, some obligations, such as protecting your brand, opening a dedicated bank account or staying alert to administrative scams, go beyond the French framework and concern many countries around the world, even though the relevant authorities differ.
Registering online
Registration is compulsory and free of charge if you want to set up a business legally in France. Tip: before you register, check that the name you have chosen is available, then declare it. All the steps are explained on the INPI website.
Prepare your supporting documents
Mandatory supporting documents:
- A copy of your ID.
- Proof of address for the business (EDF electricity bill, water or gas bill, etc.).
- A sworn statement that you have no criminal convictions + a statement of parentage (dated and signed).
Optional supporting documents:
- A declaration of exemption from seizure for your personal assets (it cannot apply to your main residence; you can still take this step voluntarily to protect other assets, but it is optional and must be done through a notary).
- For regulated activities (craftsperson): a copy of your diploma or licence to practise.
- The CAPE contract (business project support contract), if you are being supported with your project.
Where and how do you register?
Registration is done online through the one-stop business portal, the Guichet unique (run by the INPI since 2023). This portal centralises all the formalities for every business, whatever its legal status. You must file your declaration no earlier than one month before you start trading and no later than 15 days after you start.
You need to create a personal account on the site, then fill in an interactive form in which you declare the creation of your activity (commercial, craft or liberal profession). You can register as a commercial activity (the most common choice) or as a craft activity. If you are unsure whether you qualify for craft status, see point 5 of this article.
What does registration involve?
Once approved, your business will be listed in the National Business Register (RNE), which replaced the Trades Register in 2023.
- You will receive a SIRET number, which allows you to invoice legally and to file your tax and social security returns.
- Official authorisation to carry out your activity: you can issue invoices, open a business bank account, sign contracts, and so on.
- Affiliation with URSSAF: you can declare your income and pay contributions towards your social security rights (pension, health cover, etc.).
For commercial activities, registration also goes through the Trade and Companies Register (RCS). For a craft activity run as an auto-entrepreneur (e.g. candle making), only registration in the RNE is required.
Registering with URSSAF
Once you have your SIRET number, don’t wait to activate your URSSAF account.
How do you set up your URSSAF account?
To activate your URSSAF account, have your SIRET number to hand, along with the notice of affiliation to the self-employed social security scheme (SSI), which you will receive by post or email after applying for registration. Then go to autoentrepreneur.urssaf.fr and follow the steps shown.
What do you need to declare and pay to URSSAF?
You must declare your turnover and pay your social security contributions.
When setting up your micro-enterprise, you will have chosen a reporting frequency (monthly or quarterly). Your first declaration must be made 90 days after the end of the current period, even if you have not made any sales.
For a micro-enterprise, the social security contribution rate depends on the type of activity. In 2025, the rates are as follows:
- Sale of goods: 12.3% of turnover.
- Commercial or craft services: 21.2% of turnover.
- Non-regulated liberal professions: 24.6% of turnover. (This does not apply to you.)
Warning
Filing a declaration is compulsory, even if you have no income. If you forget, you face a flat-rate penalty of €52 for each missing declaration.
Taxes and the CFE
Setting up a professional account on the tax website is often overlooked, but it is essential if you have to pay the business property tax.
What is the CFE (business property tax)?
As a micro-entrepreneur, you must pay the business property tax, except in your first year, when you can apply for an exemption using this form (Initial declaration 1447-C-SD (CFE)).
You can also be exempt from this tax if:
- You registered as a craftsperson, or
-
You have no business premises and your annual turnover does not exceed €5,000.
How is the CFE calculated?
If you work from home:
The amount due is based on the turnover generated over a 12-month period, corresponding to year N-2.
If you have business premises:
The CFE is based on the rental value of the property, subject to property tax, that the business used to carry out its activity two years earlier, i.e. in year N-2.
In short, you will not pay CFE in your first year of business, but after that you will have to pay it every year, unless your turnover is very low. The amount also depends on where you work (business premises or home).
Do I have to pay income tax as an auto-entrepreneur?
Read on below to find out when you are liable for tax and when you are not. First, a reminder of the French income tax brackets:
The standard scheme
At the end of the year, you declare your turnover excluding VAT on your income tax return.
The tax authorities automatically apply a flat-rate allowance to work out the taxable portion:
- 71% of your turnover deducted for the sale of goods or accommodation.
- 50% of your turnover deducted for services (BIC) (crafts, trade).
- 34% of your turnover deducted for a liberal profession (BNC). Does not apply to you.
Example: your turnover is €20,000
€20,000 − 71% allowance = €5,800 taxable.
This amount is added to your other income: if you have no other income, you will often stay in the 0% or 11% bracket.
Why is the allowance lower if you register as a craftsperson?
The tax authorities consider the costs of this activity to be lower than those of selling goods, which involves buying raw materials, holding stock, logistics, etc.
The flat-rate tax option (versement libératoire)
You can choose this flat-rate income tax option for 2025 if:
- Your household’s reference taxable income (RFR) in 2023 did not exceed €28,797 for one tax share (single person) or €57,594 for two tax shares (couple).
- You stayed within the micro-enterprise turnover ceilings (€188,700 for sales and €77,700 for services in 2025).
How it works: you pay your income tax at the same time as your social security contributions, as a percentage applied directly to your turnover:
- 1% for the sale of goods.
- 1.7% for services.
- 2.2% for liberal professions.
Example: your turnover is €20,000
1% of €20,000 = €200 in tax to pay (at the same time as your URSSAF contributions, every quarter or every month).
You must apply to URSSAF for this option before 30 September for it to apply from the following year (or within 3 months of setting up your micro-enterprise if you have just started out).
What should I do if I want to register my business as a craft activity?
In fact, there is no state diploma in France dedicated to candle making or the chandler’s trade that would allow you to register as a craftsperson in this field. To be officially recognised as a craftsperson, you have two options:
Hold a state-recognised diploma
You must be able to present a recognised diploma in a related field (CAP vocational diploma in arts and crafts, chemistry, visual arts, etc.), but this is neither compulsory nor necessarily suitable, and there is no guarantee that your application will be accepted.
Have 3 years’ experience in candle making
You must prove at least 3 years’ experience in candle making, gained as an auto-entrepreneur, employee or self-employed person, in France or elsewhere in the EU. Once you have those 3 years of experience, you will be recognised as a craftsperson for candle making. Local Chambers of Trades and Crafts (CMA) frequently help candle brand founders with these procedures.
Obtaining craft status can set you apart and add value to your business. However, this status comes with a higher tax base than the one applied to the sale of goods. It is therefore essential to weigh up the benefits and the tax implications carefully before making your choice.
VAT and thresholds for micro-enterprises
Value added tax is an indirect tax on consumption. As a business owner, you collect it from your customers and pay it over to the State. You are exempt as long as your turnover stays below a certain ceiling, but as soon as you cross that threshold, charging VAT becomes compulsory.
VAT exemption scheme: selling without charging VAT
As a micro-enterprise, you are exempt from VAT as long as your turnover stays below the threshold set for your activity.
For selling candles (a commercial “buy and resell” activity), this ceiling is €85,000 in 2025. As long as you stay below this limit, you do not charge VAT and have nothing to pay over to the State. Your invoices must, however, carry the statement “TVA non applicable, art. 293 B du CGI” (VAT not applicable, Article 293 B of the French General Tax Code).
Exceeding the threshold: invoicing and declaring VAT
If your turnover exceeds the applicable threshold, you will have to charge VAT on your sales, declare it and pay it over. In return, you will be able to deduct the VAT paid on your business purchases. Note: in 2025, the plan to lower this threshold to €25,000 was suspended and has not yet come into force. One to keep an eye on.
Thresholds vary from country to country
VAT is governed by a European directive and applies in all member states. However, each country sets its own rates.
Additional obligations
Some obligations are often overlooked or little known among micro-entrepreneurs. Here are the main ones:
Bank account
If you set up a micro-enterprise or an EI (sole proprietorship), opening a business account is not compulsory, unless your turnover exceeds €10,000 for two consecutive years. A dedicated account keeps your personal and business finances clearly separate, which makes management simpler.
Important: if you are setting up a company (SAS, SARL, EURL, SASU), a business bank account is compulsory before registration.
Brand and intellectual property obligations
We recommend registering your brand or trade name with the INPI to protect the identity of your candle brand.
- Make sure you do not use names or logos that are already protected, to avoid disputes.
- Remember to secure the domain names and social media accounts linked to your brand.
CITEO contribution
Since 1992, businesses have been bound by a regulatory obligation set out in the French Environmental Code: extended producer responsibility.
This principle means that businesses are held responsible for the environmental impact of the products they place on the market. They must therefore act to reduce this impact by organising the collection, management and recovery of the waste their products generate at the end of their life.
By joining Citeo, you transfer your waste management obligation in exchange for a financial contribution. This contribution supports the national collection, sorting and recycling system, as well as initiatives that encourage the reuse of your packaging and paper across France. It amounts to €80 a year.
Also worth knowing
Watch out for scams
When you launch your business, you become a prime target for certain administrative scams. It is not unusual to receive fraudulent letters or invoices, sometimes imitating official bodies such as INSEE or URSSAF. These documents can look convincing, with logos, legal references and a reassuring official tone.
Read any document carefully before making a payment. If in doubt, contact the official body concerned.
Conclusion
Setting up your micro-enterprise may seem daunting given how complex the procedures are, but once you understand and prepare each step, everything runs more smoothly. With this simplified guide, you now have a clear picture of the administrative obligations you need to meet to launch your handmade candle brand fully within the law.
And if your next step is taking part in a Christmas market, take a look at our guide “How to prepare for a Christmas market”: choosing your stand, planning quantities, pricing, organisation and tips for approaching the big day with confidence.
And remember: every great adventure begins with a first step. So don’t wait any longer: structure your project, make your business official and bring your fragrance world to life with passion and professionalism.
