What help can I get to start my own company in 2023?

If you’re setting up your own company in France, you’re probably well aware of the legal obligations when it comes to managing your finances, the dull but very important matters such as social charges, tax contributions, and bookkeeping.

But as well as these duties, you’ve also got rights, and they include the right to get support.

There are numerous sources of financial aid to get your project up and running. You may need to dig a little to find them, but they can be well worth the effort. Whether it’s before, during, or after the company creation phase, a helping hand is always welcome.

So what help is available and where can you find it? Step this way and let’s find out.

There’s good news if your business is registered in what’s known as an Urban Free Zone (Zone franche urbaine), as you may receive relief from corporate income tax (impôt sur les bénéfices).

Value Added Tax is, generally speaking, a levy on consumption.

In theory, it is not up to vendor companies to absorb VAT costs, but rather the end consumer. The vendor company simply collects the amount on behalf of the government.

In practice, however, VAT can and does influence prices and tariffs. For example, this happens when you sell products or services to members of the public, who - unlike professionals and companies - cannot recover the VAT on their purchases.

It is possible to claim VAT exemption under certain conditions, and to qualify, your turnover must not be greater than:

• €91,900 for activities in commerce or the accommodation sector
• €36,800 for services and liberal professions.

Note: these new thresholds are valid for 2023, 2024 et 2025.

The exemptions apply automatically if you do not exceed the above limits, and you do not need to make any requests. Having said that, if you do exceed those limits, it is up to you to contact the business tax office (Service des Impôts des Entreprises - SIE) in order to obtain a VAT number. So keep a close eye on how your turnover grows to avoid hefty fines when the tax inspectors come calling.

Not to be confused with the ACRE or the ASS (see above), the ARCE is specifically for those seeking to create a new company or buy an existing one. Under this system, your unemployment benefits are no longer paid to you monthly, but rather in two installments, thus helping to provide you with capital. This can give you a significant boost when launching your project. But, of course, there are conditions to be met. To qualify for the ARCE, you must:

• have the right to unemployment benefits
• have created or bought your company after the end of your last work contract.

An activity bonus is financial aid from the French national family allowance fund (Caisse d’allocations familiales - CAF) to support low-income workers.

The good news is that it doesn’t only apply to full-time, contracted employees. Freelancers and the self-employed can also access it as long as they are:

• aged 18 or over
• of French nationality, a citizen of the European Economic Area, Swiss, or holders of the right to work in France
• living in France.

There are also income criteria that apply to the activity bonus; eligibility depends on the industrial and commercial profits (bénéfices industriels et commerciaux - BIC) or non-commercial profits (bénéfices non commerciaux - BNC) that you have declared to the tax office.

If you wish to know whether you are eligible for an activity bonus, you can use a handy bonus calculator on the CAF’s website.

An Honor Loan (Prêt d’honneur) is a good alternative to the NACRE and gives you the chance to borrow larger sums of money - from €2,000 to €50,000, depending on your project. Again, this loan is interest-free but must be combined with a bank loan.

If you’re interested in this process, you can make a request directly with any lender that offers an Honor Loan, like Réseau Initiative France or Réseau Entreprendre. Your dossier will be examined and assessed by a committee.

If you’ve created a company that qualifies as a “young innovative enterprise”, you can apply for a special grant, the Bourse French Tech, that can be worth anything up to €30,000 depending on your project and its needs.

Your company may use state-of-the-art technology to solve one of the great challenges of the 21st Century, like healthcare, mobility, or climate change. If you fit this ‘Deep Tech’ category, you may be able to get a grant of up to €90,000, known as the Bourse French Tech Emergence.

So, where do you apply?

To request either a Bourse French Tech or a Bourse French Tech Emergence, you’ll need to get in touch with the Banque publique d’investissement (BPI) to present to them your project and their advisors will guide you through the entire process. If your project gets an initial green light, you’ll then have to send a full dossier to your regional BPI head branch. This can be done online on the BPI’s website, and you should receive an answer within one month.

The field of culture took a serious hit during the Covid pandemic but fortunately, dozens of initiatives have been created to support businesses in this domain. All the available aid programs can be found on the French culture ministry’s website.

If you work in a specific location or field of activity and are wondering whether your business qualifies for financial assistance, you’ll find plenty of useful information on this dedicated platform. You can customize your search and consult all the aid and support programs open to you. Take the time to have a good look around, as many programs are little-known but much-appreciated by those who find them.

If you’re under 26 years of age and want to set up your own company, you should be eligible for the Cap’Jeunes program put in place by the associative network France Active. It can provide you with financial support of up to €2,000 to help you make your initial business investments. It also offers a personal mentoring program to guide you through the early stages of your project and boost your chances of continued success.

To access this support, you should send a request to your nearest France Active office, which you’ll be able to find via this link.

Whatever your field of activity, your location or your life circumstances, there’s a good chance you’ll find assistance adapted to you. There are hundreds of different programs in France, most of which can be found in this Chamber of Commerce database.

Yes, you have to do some digging. There will be dossiers to complete and administrative hoops to jump through, but your new company is worth it. Somebody, somewhere is waiting to help you on your way and make your business a success.

Just do what you can to find them.