When starting up or taking over a business, it is possible to obtain various forms of assistance. These may take the form of a cash payment or total or partial exemption from certain charges. ACRE (Aide aux Créateurs et Repreneurs d'Entreprise) is one such exemption. It can be particularly useful for starting a business in the best possible conditions.
What is ACRE?
ACRE, also known as exonération de début d'activité, is a partial or total exemption from social charges for a period of up to three years. Since January 1, 2019, it has succeeded ACCRE (Aide aux Chômeurs Créateurs ou Repreneurs d'Entreprise), which had a similar purpose, but concerned only jobseekers.
How much is the exemption?
The ACRE exemption applies to health, maternity, old-age, widow's/widower's, disability and death insurance contributions, as well as to family allowances payable to the schemes to which the business creator or entrepreneur is newly affiliated. Other social security contributions, such as CSG-CRDS and compulsory supplementary pensions, are not covered by the aid and remain payable.
Exemption from charges is: + total for income below 75% of the PASS (Plafond Annuel de la Sécurité Sociale), i.e. €30,393 + partial and degressive for professional income between 75% of the PASS and the PASS, i.e. between €30,393 and €40,524 + If professional income exceeds €40,524, there is no exemption.
For micro-entrepreneurs, the amount of income is calculated after a deduction from sales. To qualify for ACRE, the sales thresholds must not be exceeded: + €139,738 in sales excluding VAT for commercial activities + €81,048 in sales excluding VAT for commercial and craft services + €61,400 in sales excluding VAT for liberal professions.
In principle, the exemption, whether total or partial, is granted for a period of 1 year. However, under certain conditions, micro-entrepreneurs can extend their exemption for a further 24 months.
Who is eligible for ACRE?
Under the ACCRE scheme, you had to be in one of the following situations to qualify for assistance: + be a jobseeker receiving or likely to receive compensation from Pôle emploi + not be receiving compensation from Pôle emploi, but have been registered as a jobseeker for at least 6 months in the last 18 months + be receiving the RSA (Revenu de Solidarité Active), the ATA (Allocation Temporaire d'Attente), the ASS (Allocation de Solidarité Spécifique), PrePare (Prestation partagée d'éducation de l'enfant) + aged between 18 and 25 + aged under 30 and recognized as disabled + aged under 30 and not eligible for unemployment benefit + employed or dismissed by a company in receivership, in receivership or compulsory liquidation, and taking over a business, without it having to be the original business + holding a CAPE (Contrat d'Appui au Projet d'Entreprise) + setting up or taking over a business in a QPV (Quartier Prioritaire de la Politique de la Ville)
However, the transition to ACRE has changed this, extending the assistance to all business start-ups and takeovers, regardless of their personal situation.
The only condition is that the entrepreneur must not have already benefited from ACCRE or ACRE in the 3 years following the end of his or her acquired rights for a previous application.
Conditions to be met by the company
To qualify for ACRE, the business creator or buyer must meet certain criteria: + The business must be a sole proprietorship or a company + In the case of a company, the applicant must exercise effective control of the business: either by holding more than 50% of the capital, or as a manager holding at least 1/3 of the capital, provided that no other partner holds more than half of the capital.
Please note that for a single project, it is possible for several people to apply separately for ACRE. In this case, they must meet the following conditions: + they collectively hold more than 50% of the capital + one or more of them is a director + each applicant holds at least 1/10th of the fraction of capital held by the person with the largest shareholding
How do I qualify?
Since January 1, 2019, there are no steps to take to obtain ACRE.
Before the reform, you had to fill in an ACCRE form and compile a file containing various supporting documents. This had to be submitted to the relevant CFE within 45 days of the company's creation. URSSAF then had one month to notify acceptance or rejection of the application.
With the arrival of ACRE since January 1, 2019, a major simplification has been made: entrepreneurs no longer have to complete any formalities.
At present, business creators or transferees who consider themselves eligible for the aid apply the exemption themselves when paying social security contributions. URSSAF can then carry out checks to verify that the entrepreneur was indeed entitled to apply the corresponding exemption from social security contributions to the ACRE.
Combining Pôle emploi financial aid with ACRE
Although jobseekers are no longer the only ones eligible for the exemption from charges, the ACRE still entitles them to receive other assistance from Pôle emploi. Jobseekers benefiting from ACRE can also claimARCE (Aide à la Reprise ou à la Création d'Entreprise).
This assistance represents 45% of ARE (Aide au Retour à l'Emploi) entitlements remaining at the time of business start-up, and is paid in two instalments: + the first half when the business starts + the balance after 6 months of effective activity.
The remaining 55% entitles the entrepreneur to unemployment benefits in the event of retirement.
