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Main relief to the creation of Businesses

Main relief to the creation of Businesses

There are a very large number of helpers for entrepreneurs. We cannot quote them in their entirety, but the list of the main help below can be useful if you aim to start a business in France.

I – Social aids

  1. A.C.R.E

Since the beginning of the year this help can be requested by all business creator, it consists of:

  • An exemption from social contributions for the benefit of the creator during the first year of activity (except C.S.G., C.R.D.S. and supplementary pension).
    Exemption is total on income up to € 29 800, it is degressive beyond this amount.
  • A degressive exemption for three years reserved for “auto-entrepreneurs” and “micro-entrepreneurs” provided their income is less than € 40 600 approximately.
  1. Young innovative companies (J.E.I.)

When a company meets the conditions to obtain the status of “J.E.I.”, it can obtain an exemption from employer social contributions for 8 years on salaries paid to researchers and technicians related to research.

This measure is also accompanied by an exemption from corporation tax and Territorial Economic Contribution (C.E.T).

  1. “Pôle-Emploi”

When an unemployed person is a business creator, it is possible to maintain the payment of unemployment benefits in one of two ways:

  • Maintenance of unemployment rights (A.R.E.): In this situation, the creator remains on the jobseeker lists and reports monthly his activity income.
    He will receive his jobseeker’s allowances to which 70% of the income from the company’s activity will be deducted.
  • Payment of capital (A.R.C.E.): If the creator opts for this aid, he will receive 45% of the amount of benefits remaining to be received. This sum will be paid half at the beginning of the activity of the company and the other half six months later.
  1. Exemption from employers’ charges on wages in certain areas

Please, refer to Chapter II paragraph 4.

II – Tax aids

  1. Income tax reduction for subscription to the capital of a small or medium-sized company

The tax code provides for a tax reduction of 18% of the amount invested in the capital of a small or medium European company created for less than 5 years.

The subscriber must undertake to keep his shares for a minimum period of 5 years. The law has provided a lot of conditions for obtaining this tax reduction, you can contact us to know the details.

  1. Tax Deduction of Loan Interests for Investment in a Business

The managers or employees of certain companies may deduct interest from loans borrowed to subscribe for the capital of their company.

The company must meet several conditions provided for by law, we keep them at your disposal on your request.

  1. Exemptions from taxes on profits

In this context, there are also a large number of exemptions granted to creators during the first years of life of the new business. We list below the most common ones.

  • Exemption in rural revitalization zone (Z.R.R.): This device is intended for business set up in a municipality whose list is fixed by the government.
    The exemption is granted for a period of 8 years including 5 years on the entire profit and 3 years on a degressive part.
  • Exemption in certain urban areas (Q.P.V.): The activities that are created in these areas also benefit from a tax exemption on profits for 8 years at 100% during the first 5 years and then 60% in the sixth year, 40% the seventh and 20% the eighth.
  1. Exemption from C.F.E. and property taxes

Companies that establish themselves in Z.R.R. or in Q.P.V. are exempt from “Contribution Foncière des Entreprises (C.F.E.)” and Value-Added Contribution in full for 5 years then declining for 3 years.

Upon deliberation by local authorities, they may be exempted from property tax on buildings for professional use located in the area they own.

In addition, companies located in Z.R.R. are exempt for 12 months from employers’ social security contributions on any new hiring on permanent contracts or fixed-term contracts of at least 12 months. The exemption is limited to a maximum base of 2.4 times the SMIC.

Regarding the jobs in Q.P.V., companies can get a bonus under certain conditions that we can tell you on your request.

III – Miscellaneous aids

Here is a list of some help you can get when starting a business. We can of course give you the conditions of obtaining.

  1. Zero rate loans

They come in addition to bank loans and facilitate the obtaining of other financing.

  • NACRE zero rate loan: It is granted by the region for an amount of € 8,000 to 10,000 over a maximum period of 5 years.
  • Loans of the ” Initiative France” network: They amount to € 3,000 to 6,000 per job created. Their duration is from 3 to 5 years.
  1. Guarantee funds

They come in guarantee of the loan contracted with a banking organization at the time of the creation of the company. They provide valuable help in financing the business.

  1. Micro credit for business creation

These are loans for the benefit of people excluded from the banking system. They are suitable for small, low-risk projects.

  1. The accompaniments to the creation of businesses

  • Accompaniment of “POLE-EMPLOI Parcours ACTIV’CREA”: The purpose of this measure is to help the jobseeker become a business creator.
  • Enterprise Project Support Agreement (CA.P.E.): This contract consists of assistance provided by a company or an association to a person to prepare his creation project.
  • Chambers of Commerce and Industry: They also develop various assistive devices for creation.
  1. The subsidies

The main ones are:

  • Grant “Cap’ Jeunes” for creators under 26,
  • Subsidy “FISAC” for renovation of local shops,
  • Grant “AGEFIPH” for disabled workers,
  • Grant “F.D.I.” paid by the county councils,
  • Award “French Tech” for young innovative companies (J.E.I.).

There are still many sources of aid or funding such as crowdfuding, “Pépinières d’entreprises”, some “EXCEL” tools, etc.

The chartered-accountant is also an excellent partner in the creation of your business. So, whatever your project, contact us to explain your objectives and we will help you during all stages of the creation.

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