12. Financial Assistance for Starting a Business in France

1. 12.1. Introduction
2. 12.2. Assistance to Unemployed
3. 12.3. Regional Development Schemes
4. 12.4. Bank Finance
5. 12.5. Assistance with Employee Costs

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12.2. Financial Assistance to Unemployed in France - ACCRE

There is a national scheme that offers financial support to set up a business to those who are unemployed and to social security claimants.

The scheme has the acronym ACCRE, which stands for l’aide aux demandeurs d’’emploi créant ou reprenant une entreprise.

It grants exoneration from some social security contributions to a business start-up. The nature of the assistance depends on the tax status of the business you have established.

The most generous level of assistance applies to those registered as an auto-entrepreneur, who benefit from a reduced rate of contributions for the first three years of the business.

Those not registered in this way can still receive assistance, as they are relieved of paying the main pension and health contributions, although they will continue to be obliged to pay the social welfare levy CSG/CRDS at the rate of 8%, the invalidity/death contribution, as well as payments into the complementary pension scheme. However, the assistance is only for one year.

Eligible persons are:

• Registered unemployed, and in receipt of unemployment benefit, or about to become registered unemployed;
• Registered unemployed, but not in receipt of unemployment benefit, provided you have been registered unemployed for at least six months during the previous 18 months with Pôle emploi, the government employment agency;
• An employee from a business in bankruptcy or liquidation who decides to start own business;
• Recipients of certain social security benefits, e.g. RSA, API
;
• Young people under 30 years eligible for preferential employment contracts.

If you do not register as a auto-entrepreneur then the assistance is subject to an upper net income limit of 120% of the minimum wage, which in 2011 is €19,656. This means that you will pay all social security contributions on profits above this figure.

Information on the assistance available to a auto-entrepreneur can be found at Micro-Entrepreneur Business Status.

If you do not make application at this time, you must do so within 45 days of business registration, or lose your entitlement to apply for assistance under the scheme.

You can also view and download the Application Form you need to complete. Although the application form does look formidable, the expectations of those who will consider it are not severe.

The same assistance is available to an employed person who wishes to set up their own business.

These applicants are called salarié-créateur and they can also be granted unpaid leave to do so, as well as an entitlement to 12 months exoneration from most social security contributions.

The employee must have been with their company for two years and must have worked a minimum of 910 hours in the preceding 12 months.

You must also continue to work at least for 412 hours with your existing employer during the first 12 months of the new business.

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Next: Regional Development Schemes

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