To encourage entrepreneurship, the French legislator has provided a whole series of aids for starting a business. These are extremely diverse, both in terms of their effects and the type of entrepreneur concerned.
Some consist of financial aid, others of support or tax exemptions. The schemes are also reserved for certain types of projects or situations. Sometimes, it is difficult to understand what you are entitled to!
See also : Behind the Scenes of Audiovisual Education: A Journey into the Heart of Creation
To see more clearly, manager.one is back today for you on the main support for business creation.
Startup aid for job seekers
The legislator aims to encourage the rebound of job seekers by promoting business creation. It is therefore quite possible to combine unemployment benefits and income from self-employment. Different modalities are possible.
Further reading : Successfully Moving Your Business: Strategies and Tips for a Smooth Transition
Beneficiaries of AER benefits, from the unemployment benefit declaration to Employment, can continue to receive their monthly benefits while they are self-employed. However, the amount of income from self-employment is reduced as the income from self-employment increases.
ARCE beneficiaries can also opt for the ARCE scheme: Aid for Business Resumption or Creation.
This involves a capital payment of 45% of the remaining rights to the REA. The amount of capital paid under the ARCE does not depend on the income derived from self-employment.
The REA is paid in two installments. A first payment of 50% is made on the first day of activity. The second payment occurs six months after the date of business creation, provided that the individual is still engaged in their activity.
Supporting business creation
Entrepreneurship is not invented. Creating and managing a business can be extremely complex for poorly informed entrepreneurs.
The State and certain organizations have developed support programs to prepare entrepreneurs and takeovers for managing their nascent business.
Leaving for business creation or takeover
The law allows employees, under certain conditions, to reduce or even stop their salaried activity in order to devote themselves to a project of creation or takeover of activity.
The employee can then choose between a part-time leave or a full leave. However, they must have two years of seniority in their company.
The Cap: Support Contract for a Business Project
The Cap consists of support provided by a company or an association to creators and takeovers of a business.
On this occasion, the entrepreneur commits to follow a preparation program for the creation and management of a business. They then receive special and ongoing assistance from the partner company or association that provides them with material and technical resources.
5 Days to Start a Business by the ICC
The Chambers of Commerce and Industry in France offer courses titled “5 Days for Entrepreneurship”. On the agenda: helping entrepreneurs model a business creation project, allowing them to join a network, and facilitating the financing of their project.
Financial aid for business creation
Starting a business generally leads to the use of professional bank loans. It is not uncommon for startup investments to exceed the financial capacity of the novice entrepreneur. Then, you need to find a way to finance your business.
However, banks can be relentless when faced with a business project whose sustainability is uncertain.
The State and certain organizations have then set up mechanisms to facilitate access to financing for entrepreneurs. These take the form of advantageous loan offers or bank guarantees.
Loans for business creation
In addition to conventional bank loans, it is possible to borrow from certain organizations or associations. The loans offered have favorable conditions. Let’s take a closer look at three of them.
A zero-interest loan can first be included in the NACRE scheme. This individual support aims to help entrepreneurs set up a startup or business takeover project.
It revolves around three axes: assistance with setup, assistance with financial structuring, support for the startup and development of the business. Only certain entrepreneurs can benefit from this scheme: job seekers, RSA beneficiaries…
The Adie microcredit means a loan of up to €10,000. It is intended for self-employed individuals who have difficulty obtaining credit. It is a short-term loan — up to 3 years, which requires a guarantee from a relative.
Finally, the honor loans offered by the Réseau Entreprendre and Local Initiative Platforms do not replace a bank loan but facilitate obtaining this loan. These are loans without guarantees or interest.
Loan guarantees for business creation
Banking institutions generally require solid guarantees to protect themselves against the inherent risks of entrepreneurship. To help young entrepreneurs obtain loans, certain agencies offer bank guarantees to entrepreneurs.
The BPI France creation guarantee
BPI France, the Public Investment Bank, can guarantee 50 to 60% of professional loans for certain entrepreneurs. This scheme is called the creation guarantee.
Not all entrepreneurs are eligible. The creation guarantee is intended for SMEs under community law established for less than three years. It also applies to executives who are personally indebted to provide funds to a newly created SME.
The entrepreneurial projects concerned are also limited. They must relate to the creation or takeover of a business, or the development of new activities or new products.
The France Active guarantee
France Active, an associative network dedicated to entrepreneurs, also offers a loan guarantee for business creation. It targets unemployed individuals and/or those in economic insecurity.
The guarantee covers 65% of the borrowed amount. It is limited to €45,000.
Tax and social contributions relief for entrepreneurs
Tax relief and exemption from taxes and social security contributions are also levers that can promote entrepreneurship. There are many types of them. Let’s zoom in on the main ones.
ACRE: Aid for creators and takeovers
The ACRE is a system of exemption from social security contributions reserved for creators and takeovers of businesses, regardless of their legal status.
The exemption from social security contributions lasts for 12 months. However, certain social contributions remain due. This is the case for CSG/CRDS.
Exemption from corporate property tax
The CFE is a local tax based on the rental value of premises used for independent professional activity.
New businesses benefit from an exemption for the CFE for the first calendar year of operation.
Other tax exemptions or reductions
Many tax relief and exemption schemes target business creators and takeovers.
To name just a few: tax exemption on profits in ZFU, tax exemption in ZRR, social and tax exemptions in a BER…
Startup aid: key takeaways
- Job seekers can legally combine unemployment benefits and income from self-employment.
- Many coaches exist to help entrepreneurs build a project and manage a business.
- Entrepreneurs seeking funding can obtain dedicated loans or take a loan guarantee.
- In addition, there are many tax and social contribution exemptions.
Tag: what is ACRE?