Guide "Make a French Start" : Available support and grants

MAKE A FRENCH START
10 insights to grow
your business in France
AVAILABLE SUPPORT
AND GRANTS

FOREWORD
MAKE A FRENCH START
10 insights to grow
02 | 03

_ AVAILABLE SUPPORT AND GRANTS
E
ven in a global economy, investment remains local. Investing in a foreign country for the
first time is a leap into the unknown: from language to culture, business practices and
regulations, nearly everything is different, and having a good product or service may not
be enough to succeed. The size and buoyancy of a country’s market, its infrastructure,
ecosystems, human capital and business environment are all crucial factors that need
to be analyzed to assess the challenges at hand, seize opportunities and make the right
choices when considering all the various options.
More than 28,000 foreign companies made these choices when they established themselves in
France. Many have been expanding here for some considerable time, offering proof that businesses
can prosper in the French economy.
This figure also reflects France’s investment attractiveness, which is founded on a powerful economy
– the fifth largest in the world – and various structural advantages, as well as highly effective
incentive schemes, including one of the best research tax credits available in OECD countries. It also
shows the confidence investors have in France’s ability to face up to the challenges of the digital
revolution, knowing that it is one of the most creative and innovative nations in the world. It is worth
remembering, too, that France boasted the largest delegation of startups after the United States at
the Las Vegas Consumer Electronics Show in January 2018, and that Paris is now home to Station F,
the world’s largest startup campus.
Ever at the cutting edge of technological progress, France embarked on a path of structural
transformation in 2017, starting with far-reaching reforms to employment and tax law. With
companies now enjoying greater flexibility and security in managing their workforce, corporate tax
being gradually reduced to 25% by 2022, and capital gains tax and labor costs both falling, France’s
investment attractiveness is taking a major step forward. These changes will continue over the
coming months, which should encourage an ever greater number of investors to choose France.
Mazars and Business France are convinced of France’s growing attractiveness and are keen to
explain these latest reforms as clearly as possible. This is why they have decided to join forces and
use their combined skills to create this guide. Mazars offers internationally renowned consulting,
auditing, tax and accounting services in 86 countries, with 20,000 employees in 300 branches, while
Business France is the national agency supporting the international development of the French
economy, providing support each year to more than 1,000 foreign investment projects. What better
partnership could there be to provide you with an operational response to your key preoccupations
regarding tax issues, employment regulations, state aid and corporate law? What better alliance of
expertise could there be to provide answers tailored to the specificities of your investment project
and to help you with the various formalities involved? We hope this guide will fully satisfy your
requirements and provide valuable insight.
Caroline Leboucher,
COO of Business France
Marc Biasibetti,
Partner - Mazars

DISCLAIMER
MAKE A FRENCH START
10 insights to grow
04 | 05

Drawing on conversations with hundreds of foreign
business leaders looking to set up in France and all
of their combined experience, Business France and
Mazars have identified 10 key questions on this
issue to which this guide seeks to provide some
initial answers.
However, by their very nature, the various schemes
discussed hereafter are subject to potential
regulatory changes. Should you wish to obtain
the very latest information, and for any further
enquiries, we would therefore recommend that you
contact Mazars and Business France experts, whose
details can be found at the end of this guide. —

INTRODUCTION
MAKE A FRENCH START
10 insights to grow
06 | 07

France is back!
France attracts investment and entrepreneurs from all over the
world. France has a lot going for it, and foreign investment in the
country is higher than at any time in the last ten years.
France remains fertile ground for businesses, and is much
more attractive than the pervasive declinist rhetoric would
suggest. Contrary to popular misconceptions, France has many
advantages over its European neighbors, and offers a range of
often little‑known support schemes.
Against this favorable backdrop, France offers a wide range of
help and support schemes to lower labor costs and tax.
Eligibility for support is based on criteria relating to each business
and its plans, as well as a number of conditions laid down by the
funding body. We recommend that you make direct contact with
the managing agencies referred to in the following pages to find
out whether your project qualifies for support.
After describing the types of support likely to be available, we will
set out the various schemes and their eligibility requirements in
the order in which they might best address issues encountered
by investors:
— What support is there for my investment project in France?
— What benefits are available for RD?
— How can I lower labor costs?

#1 WHAT SUPPORT
IS THERE FOR MY
INVESTMENT PROJECT
IN FRANCE?
#3 HOW CAN I APPLY
FOR AN ARI BUSINESS
DEVELOPMENT LOAN?
#5 HOW CAN I
APPLY FOR FRANCE’S
RESEARCH TAX CREDIT
AND INNOVATION TAX
CREDIT?
#2 HOW CAN I
APPLY FOR A PAT
DEVELOPMENT GRANT?
#4 HOW CAN I APPLY FOR
NATIONAL INVESTMENT
PROGRAM FUNDING?
#6 HOW CAN
I APPLY FOR THE
COMPETITIVENESS AND
EMPLOYMENT TAX CREDIT?
P. 10
P. 18
P. 24
P. 14
P. 21
P. 28
INSIGHTS
08 | 09

#7 HOW CAN
I FINANCE PRE-
RECRUITMENT
TRAINING?
#9 HOW CAN I
BENEFIT FROM THE CIFRE
SCHEME?
#8 HOW DO I SET UP A
PROFESSIONAL TRAINING
CONTRACT?
#10 HOW DO I SET
UP AN APPRENTICESHIP
CONTRACT?
OUR SERVICES
P. 31
P. 37
P. 33
P. 39
P. 43

WHAT SUPPORT IS THERE
FOR MY INVESTMENT
PROJECT IN FRANCE?
MAKE A FRENCH START
10 insights to grow your business in France
10 | 11

— The best-known form of support
is a grant: Financial aid calculated
as a percentage of an expense or
investment. Grants are not repayable.
Example: The PAT development
grant (see question 2) can amount to
up to €15,000 per job created.
— An allowance is a form of non-
repayable financial support which,
rather than being proportional to
an expense (like a grant), is set at a
fixed amount.
Example: Ile de France (Paris region)
pays an allowance of €1,000 per
apprentice hired.
— France offers an extensive and varied range of support to meet investors’ needs. Support
is based on eligibility criteria: (i) a project’s purpose (physical investment, research,
development and innovation, training, etc.); (ii) location (priority development area or
otherwise); and (iii) type and size of company making the investment (large corporate,
mid-size company or SME).
— Repayable advances/honor loans/
interest-free loans: These three terms
are very similar, referring to an amount
of money that is lent out interest-free
and is repayable. In certain cases, the
amount may not be repaid, in which
case it becomes a grant.
Example: The business development
loan (aide à la réindustrialisation –
ARI; see question 3) is an interest-
free, fee-free repayable advance of
between €500,000 and €2 million.
— Low-interest loans and subsidized
loans: These are more attractive
or easier to obtain than traditional
bank loans.
Example: Bpifrance offers the EIF
innovation loan to finance intangible
expenditure in connection with the
industrial and commercial launch of
an investment, in the form of a low-
rate loan where the risk is shared
with the EIB’s European Investment
Fund (EIF).
Domestic support schemes are governed by European Union regulations
that apply to all Member States.
The French authorities
provide support in a
variety of forms:
What types of support are available?

12 | 13
— Co-financing and guarantees:
These are often combined to leverage
bank lending. Under this type of
arrangement, a bank will finance
only part of the requirement, and
will have the benefit of a guarantee –
often covering more than 50% of
the capital loaned.
Example: Bpifrance guarantee to
help biotech SMEs access bank
lending. For SMEs under five years
old, 70% of the amount of the bank
loan is guaranteed.
There are a number of financial
incentives designed to help
businesses invest and create jobs.
They are administered by central
government, public-sector agencies and
local authorities.
— Central government and public-
sector agencies: Central government
directly supports investment projects
through initiatives like the PAT
development grant, managed by the
Commission for Regional Equality
(Commissariat général à l’egalité
des territoires – CGET), and the ARI
business development loan, managed
by the Large Business division (DGE)
of the Ministry for the Economy. Some
support schemes in industry sectors
where the application assessment
process requires technical expertise
are managed by public-sector
agencies on behalf of the State.
Examples:
The French Environment and
Energy Management Agency
(ADEME) manages support schemes
relating to climate change and the
energy and environment transition:
www.ademe.fr.
FranceAgriMer manages support
mainly relating to the agriculture,
wine and fisheries sectors:
www.franceagrimer.fr.
Bpifrance manages innovation and
development financing schemes
supported by central and regional
government: www.bpifrance.fr.
— Local authorities: France’s regions
and départements are responsible for
supporting economic development
projects. Local authorities are also
involved in supporting projects
relating to jobs and training.
— Municipal and intermunicipal
councils: Mainly involved in the
real estate and urban development
aspects of investment projects.
— Tax and social security exemptions
and tax credits (including the research
tax credit) are another type of support
that can be provided in a variety
of ways.
Example: France’s research tax
credit gives businesses incurring RD
expenses a tax credit under certain
conditions.
Who should I apply to?

— Most support initiatives are the subject
of time-limited calls for projects
with specific requirements covering
various aspects, such as:
Project eligibility criteria.
Type of support: grants, repayable
advances, loans, etc.
Minimum investment and/or job
creation thresholds.
Eligible expenses.
Potential partners.
Financial implications of the project.
— These types of support are not
systematic in nature. Their rates apply
to eligible expenses. Their amount may
vary depending on the benefits of the
project, and in particular on an analysis
of economic profitability.
— Potential applicants may make
preliminary contact with the awarding
body to clarify eligibility criteria and
seek technical guidance. Applications
must be made in writing before the
relevant study or work begins.
Identify support schemes:
• Overview of available support:
√ http://www.aides-entreprises.fr/
• List of calls for projects open under the French government’s “National Investment Program”:
√ www.gouvernement.fr/appels-a-projets-et-manifestations-cgi
√ Bpifrance: investissementsdavenir.bpifrance.fr
√ SGPI (Secretariat-General for Investment):
www.gouvernement.fr/secretariat-general-pour-l-investissement-sgpi
√ Caisse des dépôts: www.caissedesdepots.fr/soumettre-un-projet
√ Make our Planet Great Again: www.makeourplanetgreatagain.fr/home
√ ADEME – expressions of interest: www.ademe.fr/entreprises-monde-agricole/financer-projet
Further information
To apply

HOW CAN I
APPLY FOR A PAT
DEVELOPMENT
GRANT?
MAKE A FRENCH START
14 | 15

— The PAT development grant for
industry and services is a form of
direct investment aid to promote
the establishment and development
of businesses with plans to create
sustainable operations and jobs in
priority development areas eligible
for regional aid (‘AFR’ zoning).
— Businesses in the industrial and
service sectors located in priority
regional development areas.
— The business may receive a grant of
up to €15,000 per job created.
— Factors affecting the award and
amount of grants include the socio-
economic situation in the local
labor market, the incentive effect of
the support provided, the extent to
which the project is innovative, and
how committed the business is to
corporate social responsibility (CSR).
— Local authorities can, under
certain conditions, top up a PAT
development grant.
— Projects located in regional aid
(‘AFR’) areas can also qualify for tax
exemptions on income tax, business
property tax (‘CFE’) and the CVAE tax
on corporate value added, subject to
local authorities voting to adopt the
exemptions in question.
Definition
Eligible
businesses
Amount
— To attract more internationally mobile investment projects and retain foreign businesses
in the country, France offers the PAT development grant and the ARI business
development loan.
— A fast-track procedure has been introduced to help secure a response
from public-sector agencies within 15 days. This procedure has twin aims:
To guarantee a quick response from the authorities and obtain
‘indicative opinions’ on whether internationally mobile investments
are eligible.
To list all forms of state aid available for an eligible project, and quantify,
within 15 days, the amount of the PAT grant or ARI loan that might
be available.

16 | 17
— Eligibility for PAT development grants is based on criteria relating to project type, business
size, socio-economic conditions, and thresholds on the number of jobs to be created and
the amount to be invested.
Eligible investment
projects
Eligibility
Thresholds
Project SME Large corporate
Set up a new
establishment
YES YES
€3 million of investment
and
Creation of 20 net new permanent
jobs
Extend an
establishment’s
capacity
YES NO
Creation of 20 net new permanent
jobs (50% increase in workforce)
and €3 million of investment
Or: Creation of 40 net new permanent
jobs and €3 million of investment
Or: €10 million of investment
Diversify output YES
YES, if change of
NAF activity code
Fundamentally
change
production
process
YES NO
Acquire an
establishment
or assets
YES
YES, if change of
NAF activity code
Establishment has closed or would
have closed if not acquired
At least 50 permanent jobs maintained
and at least €3 million invested
Eligibility and conditions for securing a PAT development grant

Eligible expenses comprise investment
costs or payroll costs calculated over two
tax years.
— Investment costs:
Property, plant and equipment (land,
buildings, capital goods).
New equipment.
Intangible assets (patents,
licenses, IP).
For acquisitions, eligible costs
include buying assets from a third
party not related to the buyer.
Not eligible: Transport equipment
and replacement investments.
— Payroll costs:
Full-time equivalent (FTE) jobs
resulting from recruitment onto a
permanent contract.
Additional jobs created by the
business at the site in question.
Not eligible: Transferred jobs and
replacement jobs not resulting in net
new jobs at the site.
— Project led by a large international
company in the agri-food sector.
Creation of an industrial
production site in a priority
development area (Paris region).
Total investment: €30 million.
Jobs created: 65.
PAT development grant
awarded: €455,000.
Eligible expenses Example of a grant
awarded in 2017
• Commission for Regional Equality (CGET): www.cget.gouv.fr/prime-damenagement-territoire-pat
• Map of priority development areas: carto.observatoire-des-territoires.gouv.fr
Further information

HOW CAN I
APPLY FOR AN
ARI BUSINESS
DEVELOPMENT
LOAN?
MAKE A FRENCH START
18 | 19

— An integral part of the French government’s “National Investment Program”
[see question 4], the ARI business development loan is designed to support job-creating
industrial investment. It takes the form of an interest-free, fee-free repayable advance of
between €500,000 and €2 million.
— The ARI business development loan cannot be combined with any other form of state aid
from central government, and so cannot be combined with a PAT development grant.
A business is eligible if:
— It is at least three years old and can
produce three balance sheets.
— Mainly operates in the
manufacturing industry.
The ARI business development loan
comes in two versions:
— An ‘industrial excellence’ version
supporting projects representing
intensive investment and with a high
impact on the employment area in
question. This version is designed
to encourage the creation of new
establishments and large-scale
projects in terms of investment, jobs
and impact:
It is aimed at SMEs and mid-size
companies.
The project must encompass a program
of eligible investments of at least
€5 million resulting in the net creation of
at least 25 jobs at the site in question.
The project must be completed within
36 months.
— A ‘growth and development’ version
reserved for micro-enterprises and
SMEs, with lower eligibility thresholds
and a simplified, decentralized
application process:
This version is aimed at
micro-enterprises and SMEs,
i.e. independent businesses
and groups with fewer than
250 employees and revenues not
exceeding €50 million or total
balance sheet assets not exceeding
€43 million.
The project must encompass a
program of eligible investments of
at least €2 million resulting in the
creation of at least 10 net new jobs
at the site in question.
Eligible
businesses
Eligible investment
projects

20 | 21
Eligible expenses comprise:
— Buildings, equipment and machinery
at cost price excluding taxes.
— Internal and external project
engineering expenses.
— Intangible assets resulting from a
technology transfer in the form of
acquisitions of patents, licenses,
expertise or non-patented technical
knowledge.
Only unit expenses in excess of €50,000
may be included in the total eligible
amount. Buildings may not account
for more than 25% of the total eligible
investment budget (e.g. for an €8 million
project, the eligible budget for property
will be capped at €2 million). The
business must keep specific accounting
records of expenses incurred during the
program period so that checks can be
carried out.
— Project led by a French SME
specializing in manufacturing
tempered glass
Production site upgrade to meet
environmental standards
Eligible expenses: €13.8 million
(industrial furnace, optical control
system, etc.)
Jobs created: 45
ARI development loan awarded:
€2 million, with repayment deferred
for two years
— One-stop shop: Applications should be
submitted electronically to aide-a-la-
reindustrialisation.dge@finances.
gouv.fr
— Processing: By the Commission for
Regional Equality (CGET) through
the Interministerial Commission
for Business Location Aid (CIALA, a
representative of Business France),
supplemented by a strategic and
financial audit.
— Decision: Minister with responsibility
for Industry.
— Financial administration: Bpifrance.
— Project monitoring: Undertaken by
a monitoring committee led by the
Large Business division (DGE) and
supervised by the Secretariat-General
for Investment (SGPI).
Eligible
expenses
Example of a loan
awarded in 2017
Application
process
• Large Business division (DGE):
www.entreprises.gouv.fr/politique-et-
enjeux/aide-a-la-reindustrialisation
• www.entreprises.gouv.fr/files/files/
directions_services/politique-et-
enjeux/competitivite/ari/aide-a-la-
reindustrialisation-ARI-2017-cahier-
des-charges.pdf
Further information

HOW CAN I APPLY
FOR NATIONAL
INVESTMENT
PROGRAM
FUNDING?
MAKE A FRENCH START

22 | 23
— With a budget of nearly €57 billion,
the “National Investment Program”,
managed by the Commissariat-
General for Investment (CGI), was
set up by the French government to
finance innovative and promising
investments nationwide, under
the principle that each project is
co‑financed, with the risk associated
with financing investments shared
with the business’s bank(s).
— Depending on specific governance
arrangements, very significant
amounts can be made available
under the “National Investment
Program”, alongside a business’s own
equity funding, in priority investment
areas: investment in SMEs, the
knowledge economy, urban policy, the
social economy, training, the digital
economy, regional development, etc.
— Funding is mainly targeted at
businesses eligible for repayable or
part-repayable advances, grants or
equity funding.
— Projects are assessed in particular
on the basis of how innovative they
are, their environmental and social
impact, their prospects of creating,
maintaining or developing business,
and the business’s financial strength
(healthy finances, equity and a
funding plan consistent with the
project; ability to repay repayable
advances).
— National priorities have been
identified to help boost France’s
growth and employment potential.
— The program’s aim is to help
modernize the country and make it
more competitive by encouraging
investment and innovation in five
priority sectors that generate growth
and jobs:
Higher education and training
Research
Industry and SMEs
Sustainable development
Digital technology
Eligible
businesses
Available
financing
Selection
criteria
Eligible projects

— Calls for projects under the third phase (PIA3) of the “National Investment Program” are
listed on the website of the Commissariat-General for Investment (CGI) and are focused
on a number of priority sectors:
— List of open calls for projects: www.gouvernement.fr/appels-a-projets-et-
manifestations-cgi
— For each type of support, the guide to calls for projects specifies eligible projects,
selection criteria, financing method, deadlines and relevant contact.
— A project submission form can be completed at: http://www.caissedesdepots.fr/en/
investments-future
Identifying a call for projects
corresponding to your investment
Application process
Supporting
the digital
revolution
Developing
industries
and transport
Meeting
the energy
challenge
Investing
in healthcare
and biotech
• Bpifrance: investissementsdavenir.bpifrance.fr
• National Investment Commission (CGI): www.gouvernement.fr/documents-cgi
• Caisse des Dépôts: www.caissedesdepots.fr/soumettre-un-projet
• Economy and Finance Ministry portal: www.economie.gouv.fr
Further information

HOW CAN I APPLY
FOR FRANCE’S
RESEARCH TAX
CREDIT AND
INNOVATION TAX
CREDIT?
MAKE A FRENCH START
24 | 25

France’s research tax credit is designed for businesses that incur research costs, while
the innovation tax credit is an incentive restricted to SMEs, which can receive tax relief
amounting to 20% of expenses incurred in designing and/or making prototypes or pilots
of new products, as defined in tax regulations.
Other innovation and RD measures include the following:
— Operating expenses incurred in connection with scientific and technical research can,
at the company’s option, be capitalized (under certain conditions) or deducted in the
year in which they are incurred.
— France has specific tax rules for revenue from licenses and sub-licenses, in the form of
a reduced 15% tax rate.
— France’s research tax credit is a generic measure to support business RD operations,
irrespective of industry sector or size.
— Businesses that incur basic research and experimental development costs may,
under certain conditions, be eligible to deduct these costs from their taxes.
— The research tax credit rate varies depending on the amount of investment made.
Research tax credit
— Industrial, commercial, craft and agricultural businesses, irrespective of legal
status, that are subject to corporate tax or income tax in the category ‘industrial and
commercial profits’, and are taxed based on actual profit under either the normal or
simplified system.
Eligible businesses
Businesses exempt from corporate tax are ineligible,
except for businesses with ‘innovative new company’
(JEI) status, businesses established to take over
a struggling company, and businesses located in
assisted areas.

26 | 27
— 30% for the first €100 million
in expenses.
— 5% for amounts in excess of
the €100 million threshold.
— The amount of research tax credit
is calculated by multiplying all the
eligible expenses that the beneficiary
incurs by the relevant rate. In order to
be eligible, expenses must fall within
the scope of RD activities within the
meaning of the international definition
drawn up by the OECD, detailed in
a regularly updated manual.
— An advance tax ruling (rescrit fiscal) is a way for a business that is unsure which
regulations might apply to a future project to obtain an explicit decision from the
tax authorities.
— In the case in point, an advance ruling is a formal position issued by the authorities
establishing whether an innovation project put forward by an SME qualifies for the
research tax credit. This formal position provides the business with a guarantee that
the eligibility of its project cannot be challenged if the project is assessed differently
during a subsequent tax audit. This guarantee is only valid if the actual situation
corresponds to the situation described by the business, and on the basis of which a
positive ruling is issued. Businesses can apply for as many advance rulings as they
wish, covering one or more projects, so as to guarantee optimum eligibility.
Tax credit rate
Eligible expenses
and amount
Advance tax rulings

— Amortization and depreciation of assets allocated to RD activities.
— Employee expenses associated with researchers and technical staff (expenses relating to
junior final-year doctoral and post-doctoral researchers are double-counted).
— Operating expenses calculated on a flat-rate basis as a proportion of employee expenses.
— Expenses incurred in relation to RD activities outsourced to public or private research
institutions in France or another European Union country (expenses in relation to RD
activities outsourced to accredited public institutions where there is an arm’s length
relationship with the business are double-counted).
— Costs incurred in filing and maintaining patents.
— Costs incurred in defending patents, without limitation.
— Standardization costs in relation to the business’s products.
— Technological monitoring expenses.
— Expenses associated with designing and creating new collections incurred by businesses
in the textiles, clothing and leather sector.
Eligible expenses
— France’s innovation tax credit is a tax incentive restricted to SMEs.
— SMEs can receive tax relief amounting to 20% of expenses incurred in designing and/or
making prototypes or pilots of new products, as defined in tax regulations.
— Eligible expenses are capped at €400,000 per business per year. Expenses are declared
using the same form (Cerfa no. 2069-A-SD) and under the same terms and conditions as
the research tax credit.
— Under certain conditions, SMEs can receive their innovation tax credit rebate up front.
Innovation tax credit

HOW CAN I
APPLY FOR THE
COMPETITIVENESS
AND EMPLOYMENT
TAX CREDIT?
MAKE A FRENCH START
28 | 29

— France’s competitiveness and employment tax credit is a tax benefit for businesses
with employees whose effect is equivalent to lowering their social security
contributions. It is primarily applied to income tax or corporate tax due in respect of the
year in which the remuneration used to calculate the tax credit was paid. It can then be
applied over the following three years, with any remaining excess amount available as
a rebate.
— It is calculated at a rate of 6% of remuneration paid since January 1, 2018.
— The competitiveness and employment tax credit will be withdrawn in 2019 and replaced
by a 6% reduction in employer social security contributions.
Businesses with employees and:
— Taxed on the basis of actual profits (i.e. excluding businesses that pay flat rate tax,
micro-enterprises and micro-entrepreneurs).
— Irrespective of the form of the company: sole proprietorship, partnership, company with
share capital, etc.
— In any industry sector: agricultural, craft, commercial, industrial, service, etc.
— Under any tax system: income tax or corporate tax.
— Even businesses that already qualify for a temporary tax exemption under regional
development schemes (ZFU-TE, ZRR, etc.) or business creation and innovation incentive
schemes (new businesses, innovative new company [JEI] status).
— Eligible expenses comprise gross remuneration subject to social security contributions,
paid during a calendar year, on the basis of statutory working hours (i.e. 151.67 hours
a month or 1,820 hours a year).
— The tax credit is calculated on the basis of remuneration used to calculate employer
social security contributions: basic pay, overtime, bonuses, paid leave, benefits in
kind, etc.
— Gratuities paid to interns are not taken into account.
Eligible businesses
Eligible expenses and amount

30 | 31
The competitiveness and employment tax credit can be combined with:
— Any exemptions from social security contributions that might apply to
employee remuneration.
— Certain tax credits, such as the apprenticeship tax credit and the research tax credit.
— Certain exemptions from corporate tax: innovative new companies (JEIs), regional aid
areas, employment priority areas, etc.
Combining with other forms of support

HOW CAN I FINANCE
PRE-RECRUITMENT
TRAINING?
MAKE A FRENCH START

32 | 33
— Financial support for training is paid
to an employer after it has taken
on a new employee on a fixed-term
employment contract of between
six and 12 months, a fixed-term
professional training contract, or a
temporary employment contract,
provided that the relevant duties are
performed for at least six of the nine
months following the training.
— The decision as to whether to provide
this support is made by Pôle Emploi
(the National Employment Office)
handling the pre-recruitment training
(action de formation préalable au
recrutement – AFPR), drawing on
a written summary of the training
agreement and a copy of the
employment contract.
— Jobseekers registered with Pôle
Emploi for whom the advisor proposes
a fixed-term position requiring
adaptation through training.
— The training, recommended by Pôle
Emploi, may not exceed 400 hours
on the company’s premises and/
or at a training organization, and
may be undertaken on a full-time or
part‑time basis.
— Pre-recruitment training may be used
for pre-qualification training preceding
a professional training contract.
— Training costs incurred prior to recruitment
— Maximum of 400 hours:
Maximum net amount of €5 per hour of in-house training, capped at €2,000.
Maximum net amount of €8 per hour of external training, giving a maximum of €3,200
for 400 hours’ training.
Eligible businesses
Eligible expenses
and amount
• Submit a job offer to Pôle Emploi at
www.pole-emploi.fr
• Drafting the trainee’s employment
contract.
• Help with submitting the application
to Pôle Emploi (submitting a
pre‑recruitment training agreement,
copy employment contract, training
invoice, etc.)
Further information Our services

HOW DO I SET UP
A PROFESSIONAL
TRAINING CONTRACT?
MAKE A FRENCH START

34 | 35
Recruitment grants form part of the range of employment support schemes and are
available for all contracts in a category eligible for support. They comprise a financial
donation by central government in exchange for recruiting a person considered a priority
by the authorities.
A professional training contract is a work-study employment contract that combines:
— Acquisition of theoretical knowledge through classes (general, professional or
technical training).
— Acquisition of practical expertise within one or more businesses.
The aim is for the contract-holder to obtain certificates or diplomas corresponding to
qualifications that are:
— Listed in the national database of professional certifications (répertoire national des
certifications professionnelles – RNCP).
— Or recognized in the classifications of a national industry-specific collective bargaining
agreement.
— Or included on the list of qualifications entitling the holder to a certificate
of professional qualification.
— Young people aged 16-25 wishing to supplement their basic education.
— Jobseekers aged 26 and over.
— Recipients of the earned income supplement (revenu de solidarité active – RSA).
— Recipients of the specific welfare allowance (allocation spécifique de solidarité – ASS).
— Recipients of the disabled adult’s allowance (allocation pour adulte handicapé – AAH).
— Persons previously on an integration contract (contrat unique d’insertion).
— Recipients of the earned income supplement (RSA) in overseas départements and the
communities of Saint-Barthélemy, Saint-Martin and Saint-Pierre-et-Miquelon.
Eligible businesses

— Recruitment onto a full-time permanent contract, and continued employment throughout
the duration of support, of a young person aged under 26 (30 for employees with
disabilities). If justified by the young person’s experience or circumstances, they may
agree to be employed part-time. In such cases, their weekly working hours may not be
less than four-fifths of a full-time working week.
— Recruitment of a young person aged under 30, followed by training and skills transfer
where a business is being passed on by a person aged 57 or over.
— Continued employment on a permanent contract throughout the duration of the support
or until retirement of:
An employee aged 57.
An employee aged 55 or over at the time of recruitment.
An employee aged 55 or over recognized as a disabled worker.
Eligible activities

36 | 37
— Exemption from certain employer social security contributions for contracts entered
into with a jobseeker aged 45 or over:
Lump-sum state aid (aide forfaitaire de l’Etat – AFE) of up to €2,000 per recipient.
For part-time employees, the amount of support is calculated on a pro rata basis in
proportion to actual working hours.
Exemption from employer social security contributions for health and maternity
insurance, basic old age pension, death and incapacity, and family allowances in
respect of remuneration paid.
The exemption relates to that part of remuneration not exceeding the statutory hourly
minimum wage multiplied by the number of paid hours in a month.
— Reimbursement of tutor’s training expenses at a rate of €15 per hour, up to a maximum
of 40 hours. The contract must be filed with the accredited fund-collecting agency
(organisme paritaire collecteur agréé – OPCA) within five days, after which a decision
as to whether training expenses are eligible for reimbursement will be made within
20 days (if no response is received within this timescale, expenses are assumed to
be eligible).
— Lump-sum aid of €686 per person supported per year, if recruited by a group of
employers and only in certain cases. This is allocated, under certain conditions,
to groups of employers who organize, in connection with professional training
contracts, induction and qualification paths for:
Young people aged 16-25 who have left the education system with no qualifications,
or who have encountered particular difficulties finding work.
Jobseekers aged over 45.
— These employees are not counted as part of the employer’s workforce for a period that
varies depending on the nature of the contract.
Amount and form of support
This measure may not be combined with any other partial or full exemption from social
security contributions.

HOW CAN I BENEFIT
FROM THE CIFRE
SCHEME?
MAKE A FRENCH START

38 | 39
Under the CIFRE scheme (conventions industrielles de formation par la recherche –
‘industrial agreements for training through research’), businesses can receive a grant if
they hire a doctoral student and employ them in a central role in a research partnership
with a public-sector research organization.
— Any French business that hires
a doctoral student and employs
them in a central role in a research
partnership with a public-sector
research organization.
— A business that hires a graduate
with a master’s degree or equivalent
on a fixed-term or permanent
contract and assigns them research
duties that are strategic for its
socio‑economic development. The
starting gross annual salary must
not be less than €23,484. The work
undertaken forms the subject of the
doctoral student’s thesis.
— The grant is paid on the basis of the
agreement entered into between the
National Association for Research and
Technology (Association nationale de la
recherche et de la technologie – ANRT)
and the business.
— The contracting business receives
an annual grant of €14,000 (not
subject to VAT) for three years,
giving it financial security to fund its
research work.
Eligible businesses Amount
NB: Expenses incurred in connection with a CIFRE
agreement are eligible for the research tax credit,
after deducting grants received under the agreement
(€14,000 a year). The same applies to expenses incurred
in connection with a partnership with a public-sector
research organization.
Furthermore, if the business hires the doctoral student
after their thesis is completed, it will be able to grant
them the status of junior post-doctoral researcher.
Expenses in connection with junior post-doctoral
researchers can be double-counted when calculating
expenses eligible for the research tax credit.

MAKE A FRENCH START
HOW DO I SET UP
AN APPRENTICESHIP
CONTRACT?

40 | 41
— An apprenticeship contract is a type of employment contract between an employer and an
employee. It must enable a young person to pursue general training of both a theoretical
and a practical nature, with a view to gaining an officially recognized qualification (CAP
[certificate of professional aptitude], baccaleuréat [high school leavers’ certificate],
BTS [higher technical diploma], bachelor’s or master’s degree, etc.) or a vocational
qualification listed in the national database of professional qualifications (RNCP), including
all vocational qualifications approved by the ministry with responsibility for employment.
— Apprenticeships are based on the principle of alternating between theoretical learning
at an apprentice training center (centre de formation d’apprentis – CFA) or educational
institution, and hands-on learning with the employer with whom the apprentice has
signed a contract.
— Any private sector business,
including non-profits, can hire an
apprentice if the employer declares
that it has taken the necessary steps
to organize the apprenticeship.
This means the employer must,
among other things, guarantee
that the business’s facilities and
equipment, the techniques used, the
working, health and safety conditions
provided, and the professional and
teaching skills of the apprenticeship
supervisor are conducive to
satisfactory training.
— Young people aged 16-25. However,
the Labor, Social Dialogue
Modernization and Career Security
Act of August 8, 2016 (the ‘Labor
Act’) provided for access to
apprenticeships, on a trial basis,
for all people up to the age of 30.
Employers who take on apprentices may be
eligible for various forms of financial support:
— Exemption from social security contributions,
either in part or in full depending on the
size of the business and whether it is a sole
proprietorship.
— An apprenticeship bonus of at least €1,000 for
employers with fewer than 11 employees.
This is paid by the Regional Council every year
until the apprentice gains the qualification they
have been working towards.
— Recruitment support of at least €1,000 for all
employers with fewer than 250 employees who
take on their first apprentice or an additional
apprentice, paid by the Regional Council in the
year in which the contract is signed.
— ‘Young apprentice’ support for micro-
enterprises, payable to businesses with fewer
than 11 employees who take on an apprentice
under the age of 18.
— Additional support for employers who take on a
disabled worker.
— A tax credit of €1,600 for hosting an apprentice
up to ‘Bac+2’ level (equivalent to two years’
post-high-school education). The amount of
tax credit rises to €2,200 for some apprentices,
including those with disabilities.
— Tax deductions from the apprenticeship tax
(work-study bonus, course fees, donations
in kind).
Eligible businesses
and individuals
Amount

MAKE A FRENCH START
YOUR
NEEDS
Identifying support
corresponding to
my plans
Identifying support measures
Checking eligibility
Coordinating public-sector
agencies
Financial simulation
Leveraging physical
investments
(PAT grants
ARI loans)
agencies
Help with preparing
applications
Financial audit
Help with tax credits
(research tax credit;
competitiveness
employment tax
credit)
Identifying support measures
Introduction to the Ministry
for Research
Introduction to accredited
service providers
Securing eligibility
Help with taking
over a struggling
business
Distributing takeover
opportunities
Available public-sector support
agencies
Pre-acquisition audit
(legal, workforce, financial, etc.)
Seeking funding
Employment
contracts
Identifying the relevant
collective bargaining agreement
Drafting of contracts by our
legal specialists

MAKE A FRENCH START
10 insights to grow
Mazars
61, rue Henri Regnault
92075 Paris - La Défense
Tel: +33 1 49 97 60 00
Fax: +33 1 49 97 60 01
www.avocats-mazars.com
Simon Elbaz
Senior Manager - Paris
simon.elbaz@mazars.fr
Tel: +33 6 99 57 79 92
Business France
77, Boulevard Saint-Jacques
75680 Paris Cedex 14
Tel: +33 1 40 73 30 00
https://en.businessfrance.fr/invest
Bertrand Gaillard
Project finance
bertrand.gaillard@businessfrance.fr
Tel: +33 1 40 73 30 00

Guide "Make a French Start" : Available support and grants

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Guide "Make a French Start" : Available support and grants