How to get tax incentives when setting up an innovative company?

Understanding the different tax incentives

If you are planning to set up a start up in France, the French government has created an incentive program for innovative companies.

This status is called ” jeune entreprise innovante (JEI)  – young innovative enterprise” and it gives you a lot of of tax and social exemptions to SMEs which incur research and development expenses representing at least 15% of their expenses.


Eligibility criteria

Any company created before 31 December 2019 provided that the following conditions are fulfilled:

  • Less than 8 years of existence at the time of application
  • Be really new, ie not created in the context of a concentration, restructuring, extension of a pre-existing activity or a takeover
  • Employ less than 250 persons in the financial year in which it applies for this status
  • Achieve a turnover of less than € 50 million and have a balance sheet total of less than € 43 million
  • Be independent, that is to say that its capital must be held for at least 50% by individuals or others JEIs.
  • R & D expenditure representing at least 15% of the tax-deductible expenses for the same financial year.

What you can benefit from the JEI status?

  • Exemption from corporation tax for 24 months
  • Exemption of territorial economic contribution (CET) and property tax for 7 years

How to apply?

In order to benefit from the status of JEI, the company must spontaneously declare itself to the tax authorities within the first 10 months of its activity.

If you need to know more about setting up a company in France, you can visit our company formation page.

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