If you are thinking about starting a business in France, you might consider postponing your project for a couple of months, since the Government has just confirmed some social charges exoneration in 2019. Loi de Financement de la Securite Sociale 2018 has introduced the concept of année blanche, meaning a year with no social charges for new businesses created from 1st January 2019.
This was previously known as ACCRE (Aide aux Chômeurs Crésateurs ou Repreneurs d'Entreprises) and limited to unemployed people creating a business. ACCRE has therefore been extended to new businesses, whether it is a micro entrepreneur or an incorporated business. The social charges exonaration is not a full exoneration and it will be based on the entrepreneur's income.
How will the social charges exoneration work for entrepreneurs in 2019
Any new entrepreneur in France will benefit from ACCRE's social charges exoneration, provided their yearly income is below 39 732€. The exoneration will work as follow:
- 100% exoneration for the entrepreneur's income below 29 779€
- Reduced rate between 29 779€ and 39 732€ of income
- No exoneration for income above 39 779€
Exempt social contributions are: employer and employee contributions corresponding to sickness, maternity, invalidity, death, family benefits and basic old-age insurance. Contributions not covered by ACCRE are: contributions relating to the Contribution Sociale Generalisée (CSG), to the risk of an accident at work, to supplementary retirement, to the national housing fund (FNAL) and to the profesionnal training fund.
Conditions to benefit from social charges exonerations for new businesses in France in 2019
- Create a new business or buy an exisitng business from 1st January 2019.
- Register as a sole trader, such as entreprise individuelle, micro entreprise or EIRL.
- Register an incorporated business, such as EURL, SARL, SASU, SAS. The entrepreneur benefiting from the exoneration needs to own at least 50% of the shares.
- The conditions based on age and status seem to be removed. Previously, you had to be listed with the unemployment agency (Pole Emploi) or be less than 25 years old or above 50 years old.
ACCRE social charges rates in 2018
The new rates have not been validated, but should be based on the existing rates for ACCRE in 2018. Here are the reduced rates for ACCRE in 2018:
- A micro entrepreneur with a trading activity, food or gite starts by paying 3.2% instead fo 12.8%
- A micro entrepreneur artisan (within the building/craft sector) starts by paying 5.5% instead of 22%.
- A micro entrepreneur profession liberale starts by paying 5.5% instead of 22%.
- Detailed existing rates for ACCRE and micro entrepreneurs .
How to benefit from ACCRE social charges exoneration in 2019
When registering your business, you will have to complete an extra ACCRE form, which will be sent to URSSAF. This will have to be done within 45 days of registering your business. URSSAF will then confirm to you by post the validation of your exoneration and your social charges rates.