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While working on building Flouci as a financial app for everyone including the unbanked and underbanked, I’ve followed the development of Tunisia’s auto-entrepreneur law closely since its inception. For the past three years, I've been waiting for it to be enacted, because of an optimistic belief that it will help address one of Tunisia’s biggest economic challenges—how to formalize and support the incredible number of small, independent individuals that power so much of our economy.
The auto-entrepreneur status, launched by the 2020 decree is more than just another policy change; it’s a step toward creating real economic impact for individuals and the country at large. Here’s why I’m excited about what this status can do.
The freelance movement in Tunisia has expanded significantly in recent years, especially as platforms like Upwork and social media channels (YouTube, TikTok, etc.) have opened global markets to local talent. Increasingly, Tunisians are choosing to stay in or return to the country, working remotely with one or more companies—including international clients—while remaining based at home.
Traditionally, many freelancers operated informally, navigating an environment with limited financial or social support. This informal approach often left them without benefits like healthcare or retirement security.
More broadly, Tunisia is estimated to have over 1.3 million workers in the informal sector. Within the officially registered companies, and according to the National Institute of Statistics (INS) in 2020, 704 317 out of 801 453, a staggering 87% of companies, have 0 employees. From this, we can see both the importance of individual solo-entrepreneurs in the structure of the economy, as well as a clear gap in incentives that leaves two thirds of this population behind.
The auto-entrepreneur status addresses this gap, providing a structured system for freelancers to formalize their work while gaining access to social security, simplified tax options, and professional recognition. This historical shift empowers Tunisians to transition from informal freelancing to structured self-employment, backed by legal and social protections that were once unavailable.
A Simple, Digital Registration
Setting up as an auto-entrepreneur takes three steps:
Get a Mobile ID
Register on the platform
Pay a small fee of 10 TND.
It’s fast, efficient, and eliminates the usual administrative maze. This kind of digital ease is essential for young, ambitious entrepreneurs who need to move quickly, with guarantees to approve candidates in less than 15 days. I will address this point again in the areas of improvement below.
Access to Social Security and Health Benefits
For the first time, freelancers and solo business operators can get social protections like health insurance, retirement benefits, and accident coverage. This doesn’t just improve individual security; it boosts productivity because people work better when they know they have a safety net.
Cost-Effective Tax Structure
For auto-entrepreneurs, the tax system is simple and affordable: a fixed amount per year based on location (200 TND in urban areas and 100 TND elsewhere) valid as long as you keep your status.
This keeps finances manageable and encourages compliance without penalizing entrepreneurs just starting out. The first year upon registration is also tax-free.
Flexibility to Work from Home or Anywhere
The status allows business operations to happen from one’s residence, providing flexibility that meets the needs of freelancers, particularly in digital services, who often need to work remotely or from home.
Access to Training, Mentorship, and Financial Support
Beyond just tax breaks, the auto-entrepreneur program offers access to training, mentorship, and preferential financing. This is a serious win, as it provides auto-entrepreneur with growth opportunities at every stage of their business. We have yet to get specifics on what financing options would become available for auto-entrepreneurs, and how easily they can get access to them.
As someone building a fintech focused on payments, I see every day how empowering small businesses impacts the economy. With this formalization, auto-entrepreneur can participate in the banking system, access credit, and leverage digital payments—all critical to scaling their businesses and contributing more to the economy. The auto-entrepreneur status could potentially reduce Tunisia’s informal economy, increasing our tax base over time, and creating a more predictable, thriving economic landscape.
This policy encourages young Tunisians to see entrepreneurship as a viable career path. By offering a solid alternative to seeking opportunities abroad, it also helps to counter the growing issue of brain drain in the country.
Who’s Eligible, and What Are the Responsibilities?
The auto-entrepreneur status is open to anyone who:
Is of legal working age.
Works independently within the 100+ approved industries.
Hasn’t previously registered with a tax ID (no prior “patente”).
The requirements are minimal. Auto-entrepreneurs need to report revenue every quarter and pay an annual contribution after the first year. The initial term lasts four years, with an option to extend for three more, keeping this status flexible.
As mentioned above, the registration process is supposed to be simple, and digital, and for the most part, it is. However, the main pre-requisite for signing up and applying for the auto-entrepreneur status, you need a Mobile-id, and a card to make the initial payment of 10 tnd.
Sign up: As of the writing of this blog, almost 140,000 people have a Mobile-id. Calculating for 9 million adults, that’s only around 1.5% of the adults with an additional point of friction to get their auto-entrepreneur status. Especially that there is currently no 100% digital way to acquire a Mobile-ID, this can seriously affect the momentum of the launch of such an important platform. Two recommendations I have here:
Create a fully digital and automated way to get a Mobile-ID, using advanced identity verification methods, similar to Flouci’s eKYC process that’s approved by the Central Bank for remote onboarding.
Make the authentication with Mobile-ID the last step of the sign up process of auto-entrepreneurs. This will allow more people to fill out the forms, understand what the auto-entrepreneur status can do for them, and feel invested in finishing the sign up process. Similar approaches worldwide, moving high friction steps to the end of a sequence, are shown to improve the conversion by 10-30%.
Payment: While 10 TND is not much as a sign up fee, the need to pay it online can be another point of friction for people, given that less than 12% of the population have a bank card that can pay online according to world bank numbers in 2017. Adding mobile payment options can be a good alternatives, even if adoption is still in its infancy.
If you need to get 100% free virtual card to pay online for the service, you can consider creating a free Flouci account.
For those who’ve been on the fence about formalizing their work, the auto-entrepreneur status is — at least on paper — almost too good to be true. It provides independence with security, flexibility with accountability. More importantly, it’s a model that brings freelancers and independent workers into the economy in a meaningful way, with lasting benefits for Tunisia as a whole. If you’re ready to build something sustainable, this is the time to start.
Website to sign up: https://autoentrepreneur.tn
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