If you’re an entrepreneur or digital nomad frustrated by the maze of tax regimes and state-imposed costs, you’re not alone. Many independent professionals are searching for straightforward, flexible business structures that minimize bureaucracy and maximize autonomy. In 2025, French Polynesia (PF) offers a compelling option: the Entreprise Individuelle (EI)—a sole proprietorship status that’s both accessible and practical for those seeking to optimize their fiscal footprint.
Understanding Sole Proprietorship in French Polynesia: The Entreprise Individuelle (EI)
French Polynesia recognizes the Entreprise Individuelle (EI) as its standard sole proprietorship status. This structure is modeled closely on the French system, but with local nuances that matter for tax optimization and personal liability.
| Feature | Details (2025) |
|---|---|
| Status Name | Entreprise Individuelle (EI) |
| Legal Entity | No separate legal entity; business and individual are one |
| Eligibility | Open to all individuals (citizens and residents) |
| Liability | Unlimited personal liability for business debts |
| Taxation | Profits taxed as personal income |
| Special Regimes | No ‘micro-entrepreneur’ regime; EI is the default for small businesses |
| Registration | Required with RCS and CFE |
How the EI Status Works: Key Conditions and Practical Implications
The EI status allows you to invoice clients and operate a business without the overhead of forming a company. However, it’s crucial to understand the implications for liability and taxation:
- Personal Liability: As an EI, you are personally responsible for all business debts. There’s no legal separation between your business and personal assets.
- Taxation: Business profits are declared as part of your personal income and taxed accordingly. There’s no corporate tax layer—streamlining your fiscal obligations, but also exposing all profits to personal income tax rates.
- Social Contributions: These are calculated and paid according to local PF regulations, not the French mainland system.
- No Micro-Entrepreneur Regime: Unlike mainland France, PF does not offer a simplified micro-entrepreneur regime. The EI is the go-to status for small-scale, individual businesses.
Pro Tip: Step-by-Step Checklist for Setting Up an EI in French Polynesia (2025)
- Register with the Registre du Commerce et des Sociétés (RCS): This is mandatory for all EIs. Official guide here.
- File with the Centre de Formalités des Entreprises (CFE): This centralizes your administrative steps. See the CFE process.
- Understand your tax obligations: Profits are taxed as personal income. For details, consult the PF tax authority.
- Budget for social contributions: These are set by local rules and must be factored into your cash flow planning.
Case Example: Digital Consultant Relocating to PF
Imagine a freelance web developer relocating from a high-tax EU country to French Polynesia in 2025. By registering as an EI, they can invoice international clients directly, pay taxes only on their net business income as part of their personal tax return, and avoid the complexity of corporate compliance. However, they must remain vigilant about personal liability and ensure all local social contributions are paid on time.
Summary: Is the EI Status Right for You?
The Entreprise Individuelle (EI) in French Polynesia is a streamlined, accessible business structure for solo entrepreneurs seeking to minimize bureaucracy and optimize their tax position in 2025. While it offers simplicity and flexibility, it also comes with full personal liability and no micro-entrepreneur regime. For those prioritizing autonomy and straightforward compliance, the EI is a practical choice—provided you’re comfortable with the risks and local obligations.
For further details and official procedures, consult these resources: