The 10 steps you need to follow to start your project / STEP 6: The Aids
There are a number of public subsidies for business creation. These mechanisms, set up at the initiative of the State or local authorities, are designed to take various forms, the main ones being:
- Financial assistance. - Tax breaks. - Exemptions from social security contributions. - Assistance to the board. - The provision of premises.
These aids are not necessarily related to your project! They can:
- Reserved for specific sectors of activity. - Depend on the location of the company. - Linked to your current status (job seeker or employee for example). - Require significant investments or recruitment.
The objective of this step is to provide you with information on the modalities of granting these financial assistances in order to avoid the risk of time consummation by preparing unnecessary application files.
In parallel with these public mechanisms, numerous private initiatives were launched to help entrepreneurs to conclude their projects financially. These aids are provided by associations, foundations, clubs, large companies, some are aimed at a wide audience, others only address certain types of well-defined projects or are subject to restrictive conditions.
For information on these devices, see the Finding funding section of the ERA website.
I. State aids II. Support from local authorities III. Identify regional aid
I. State aids
They are mainly aimed at fostering:
- A better geographical distribution of companies. - The professional reintegration of job seekers. - The emergence and financing of innovative projects. - BPI support for preliminary studies and the development of innovation projects. - Local savings and financing for small businesses.
II. Support from local authorities
General principles to be respected by local and regional authorities
- Respect for the principle of freedom of trade and industry: local and regional authorities, through their economic interventions, must not distort free competition. - Prohibition in principle to take stakes in the capital of commercial companies and other profit-making organizations (commercial companies, civil societies, profit-making associations, etc.). - However, there are some exceptions provided for by law: local semi-public companies, regional development companies, etc. - Prohibition of discrimination between companies and citizens in comparable situations (principle of equality before the law). Local authorities must therefore adopt a general aid regulation defining the conditions of their intervention. Companies placed in closely comparable situations must be treated in the same way.
- Respect for the spatial planning policy defined by the State (planning contract) and Community rules.
Departments, municipalities or their groupings may only participate in the financing of such aid within the framework of an agreement concluded with the region.
Legal rules governing the financial intervention of local authorities to help business creation.
The regions are free to define the system of direct aid they grant. They only have to ensure that the Community competition rules are respected.
Local authorities may grant aid in the form of grants, interest subsidies, loans or repayable advances, at a zero rate or on more favorable terms than the average bond rate (MER).
Exemptions from territorial economic contribution, property taxes
They may be granted to companies setting up in certain areas, following a decision by the local authorities.
III. Identify regional aid
To discover the regional and local aid to which you are entitled, feel free to contact our team of tax expert and book a meeting with them. www.escec-international.com