Setting up a business is a real adventure, requiring a human commitment, and in most cases a financial one too. To make starting a business easier, various forms of assistance are available, including tax exemptions and allowances. Anytime takes a look at the various forms of assistance available to young entrepreneurs.
Exemption from social security contributions when starting up or taking over a business
The business start-up or takeover exemption, formerly known as ACCRE (Aide aux Chômeurs à la Création ou Reprise d'Entreprise), provides an exemption from social security contributions for a period of up to 3 years.
What does the exemption entitle you to?
When you set up an EI, EIRL, EURL or SASU, you are exempt from social security charges, except for CSG/CRDS and contributions to workplace accident risks, supplementary pensions and continuing professional training.
For micro-entrepreneurs, the exemption for starting up or taking over a business takes the form of a reduction in charges, depending on their activity. The reduction is degressive, and therefore progressively smaller: 75% in the first year, 50% in the second and 25% in the third.
What are the award conditions?
Until December 31, 2018, only certain profiles were eligible for ACCRE. Since the beginning of 2019, the only applicable condition is to receive less than €40,524 in the year.
Exemption from social security contributions in French overseas departments (DOM)
This aid, which can be granted for 4 years, is designed to support entrepreneurship in the French overseas departments (Guiana, Réunion, Guadeloupe, Martinique, Mayotte), by enabling entrepreneurs to pay only certain charges.
What does it entitle you to?
In the case of an EI, EIRL or EURL subject to corporation tax, the exemption depends in particular on the sector of activity and the number of employees. It may be total or partial, depending on the company's situation.
As with the start-up exemption, this assistance for micro-entrepreneurs takes the form of a reduction in the applicable rates. The only difference is that it can be granted for 4 years.
What are the qualifying conditions?
All entrepreneurs domiciling their company in a French overseas department are eligible for this assistance, with the exception of those who are salaried employees of their company. This excludes directors of SASU and certain EURLs. There is no need to apply for this aid, which is granted automatically.
Income tax exemption for new businesses in priority zones
To revitalize their regions, a number of local authorities have introduced an income tax exemption for certain companies for a period of up to 5 years.
What does it do?
This tax exemption is degressive. It is total for the first 2 years. A 75% deduction is then applied to third-year profits, 50% to fourth-year profits and 25% to fifth-year profits. Note that in certain zones, such as Champagne-Ardenne or Midi-Pyrénées, the tax exemption is total for 5 years.
What are the eligibility criteria?
Only directors of new companies paying corporation tax are concerned. This includes directors of SASU and certain EURLs. This assistance is automatic, and no application is required.
ARE
ARE stands for Allocation d'Aide au Retour à l'Emploi, in other words, unemployment benefit. Under certain conditions, self-employed workers can benefit from continued payment of their allowance, even after starting up their own business.
What does ARE entitle you to?
The minimum daily amount of ARE paid is €20.67 after vocational training and €28.86 in other cases. If you return to work as a self-employed person, you will be entitled to more or less the difference between what you would have received on total unemployment and what you earned from your activity.
Who can benefit?
To receive the ARE, you must have lost your job (redundancy or serious misconduct), not have reached retirement age, be registered on the list of jobseekers and be actively looking for a new job or setting up a business.
To obtain this assistance, you need to apply to Pôle emploi.
ARCE
Aide à la Reprise ou à la Création d'Entreprise can be chosen instead of ARE. This is an allowance paid in two instalments.
What does it entitle you to?
ARCE corresponds to 45% of the total remaining ARE. It is paid in two instalments, in the form of a lump sum. If the application is accepted, the first payment is made at the time of validation, and the second at the end of the first 6 months of activity. If you stop working, the remaining 55% can be paid again as ARE, if you re-register as a jobseeker.
What are the conditions for ARCE?
To receive ARCE, you need to be eligible for ARE, set up a business and benefit from ACCRE. Like the ARE, the application must be made to Pôle emploi.
Agefiph assistance
This government subsidy, managed by Agefiph, is designed to help disabled workers integrate into the workforce by helping them set up their own businesses.
What does it offer?
This grant entitles you to a one-off payment of a minimum of €5,000.
What are the eligibility criteria?
To qualify for Agefiph assistance, you need to meet a number of conditions: + be recognized as a disabled worker by the CDAPH (Commission des Droits et de l'Autonomie des Personnes Handicapées) + set up or take over a business + have capital of €1,500.
The application is made with the help of an Agefiph manager.
If you're in the process of setting up a business, or if you need help with your micro-business, don't hesitate to ask for it when you need it. This article lists the most common types of assistance available to entrepreneurs, but others may also be accessible depending on your profile, activity and region. Some grants are only available to women or young people under 25, while others are only available in certain sectors. Don't hesitate to do your own research!
