If you’re creating a company or buying an existing one, you can make some useful savings with the Aide aux Créateurs et Repreneurs d’Entreprise - usually referred to by its acronym, ACRE. Under this program, you get 50% off your social charges in your first year in business, although it is subject to strict conditions dependant on the legal status of your company (SARL, micro-enterprise etc.).
The 2020 reform has tightened the conditions under which a micro-enterprise or business can qualify for the tax break.
Did you start a business? You will be eligible for the ACRE if you haven’t already received it in the last three years and as long as you fulfil at least one of the following criteria:
- You, alone, hold more than a 50% share of the company’s social capital.
- You and either your spouse, civil union partner, parents/grandparents or children/grandchildren hold a combined share of at least 50% of the company and you alone hold a share greater than 35%.
- You are the director of the company and you, alone, hold at least one third of the company’s social capital.
- You are the director of the company and along with either your spouse, civil union partner, parents/grandparents or children/grandchildren, you hold a combined share of at least a third of the company and at least a 25% share by yourself alone.
If that seems slightly complex, let's break it down with a couple of examples:
Example 1: Marie set up a company along with Camille and Antoine.
Marie holds a 50% share of the capital, with both Antoine and Camille holding 25% each.
Marie is eligible for the ACRE, because she owns 50% of the shares.
Example 2: Marie set up a second company with her father Franck and another associate, Mark. The shares are distributed as follows: Marie has 40%, Franck owns 40% , Mark owns 20%.
Marie owns more than a 50% share when hers is combined with her parent's share (40% + 40% = 80%). She also owns more than 35% of the shares by herself. She can therefore claim the ACRE.