Special status for the young and innovative
One of the keys to making France a more attractive and competitive environment for young, innovative companies is the Jeune Entreprise Innovante (Young Innovative Company, JEI) initiative, which has been in effect since 1 January, 2004.
One of the keys to making France a more attractive and competitive environment for young, innovative companies is the Jeune Entreprise Innovante (Young Innovative Company, JEI) initiative, which has been in effect since 1 January, 2004.
By the end of that year, JEI status had been adopted by 750 French SMEs, of which 150 came from the biotech sector. JEI status can be adopted by existing or new SMEs for eight years after their inception provided that they spend at least 15% of their total annual expenditure on r&d; have fewer than 250 employees; and have a turnover less than Euro 40m or a total balance sheet below €27m.
Benefits include:
Total and uncapped social security costs exemption for all employees and for legal representatives involved in r&d projects.
Full and uncapped local business tax exemption for seven years.
Total corporate income tax exemption for the first three profitable years and 50% relief for the following two years up to €100,000.
Full and uncapped capital gain tax exemption for investors in a JEI, provided they keep the shares for at least three years.
Fixed-price annual tax exemption.