ESUS ("Entreprise Solidaire d'Utilité Sociale") approval has had some difficulties in developing, due to the complexity of interpreting certain criteria, delays in issuing it by the administration and difficult access for companies, particularly cooperative societies. However, the government, through the PACTE law, has made several changes to it. Details and instructions for use.
What is Entreprise Solidaire d'Utilité Sociale accreditation?
ESUS accreditation enables SSE (Social and Solidarity Economy) companies and structures to qualify for dedicated private financing, most of which comes from solidarity finance. Eligible players also have access to the IR-PME "Madelin" tax scheme.
The Entreprise Solidaire d'Utilité Sociale approval, defined by the July 31, 2014 law on SSE, thus succeeds the "Entreprise Solidaire" approval and represents a real gateway for companies seeking access to solidarity savings financing.
How do you obtain ESUS accreditation?
To obtain ESUS approval, the company must belong to one of these 5 categories of structure:
- Historical structures of the social economy(art. L. 3332-17-1-I of the French Labor Code)
- Commercial companies
- Automatic beneficiaries
- Financing organizations
- Credit institutions
Each of these categories has its own criteria for approval. For example, automatic beneficiaries must meet three cumulative conditions:
- Prove that they belong to the category of "full beneficiaries".
- Comply with the conditions set out in Article 1-I of the French law on the social economy.
- Comply with the requirements of article L3332-17-1-4° of the French Labor Code.
Application for approval must be made by the company's legal representative to the DIRECCTE of the département in which its head office is located. The DIRECCTE first checks whether or not the company falls into the category of automatic beneficiaries. If this is not the case, for commercial companies, reading the articles of association will verify that the company belongs to the SSE. For other companies, the legal form is sufficient to meet this condition.
ESUS approval is valid for 5 years. To renew, you need to update your supporting documents (copy of articles of association, extract from the trade and companies register, latest approved annual financial statements, projected income statements, etc.).
Approval now easier to obtain
The PACTE law, enacted in May 2019, has improved certain aspects of the Entreprise Solidaire d'Utilité Sociale approval in order to make its issuance more fluid and dynamic. In particular, the changes relate to the reformulation of the notion of social utility in the ESS law and the simplification of the conditions of eligibility for approval. Last but not least, the law provides for the pre-institution of applications by specialized support networks. Thanks to these improvements, ESUS approval should be easier to obtain.