Obtaining a Talent Passport Visa as an employee of a young innovative company is a path rarely taken. However, it is easier than being recognized as the leader of an innovative project by a public organization. Being recognized by French Tech is also reserved for a fairly exclusive club of international innovative companies.
Instead, you can create a French company and submit an application to the Department of Tax Services in order to be recognized as a Young Innovative Company.
A new company that invests in research and development (R&D) has the status of young innovative company (JEI) or young university company (JEU). It can benefit from tax and social security exemptions. The status of JEI has been extended to JEU which constitute a particular category of JEI.
The status of innovative start-up applies to small and medium-sized enterprises under the age of eight, part of whose expenditure is allocated to research. It allows tax and social exemptions and social benefits.
It also enables your employees to apply for a Talent Passport.
To be a young innovative company (JEI), the company must meet the following conditions:
- Being an SME: it must employ less than 250 people and achieve a turnover less than 50 millions € or must have a total balance sheet less than 43 millions €
- It must have been created since under 8 years old to benefit from social and tax exemptions.
- She must carry out R&D expenses representing at least 15 % charges.
- Its capital must be held for at least 50% by natural persons or approved entities
- She must not be created as part of a concentration, a restructuring, an extension of already existing activities or a resumption of such activities.
As a Tax Lawyer, J2M Law Firm can represent you before the Tax Services Department to request the status of JEI. The tax administration then has a 3-month deadline to take a position in the form of a ruling. His silence constitutes acceptance and recognition of the status of JEI.
Visa advantages for young innovative start-up
When the character of a Young Innovative Company is recognized by the Tax Service, their employees can submit an application for Talent Passport Visa and come to France with their family.
To be eligible, the employee of a Young Innovative Company (JEI) must demonstrate:
- gross annual remuneration at least equal to twice the amount of the minimum wage (smic);
- of an employment contract for an indefinite period or for a fixed period of at least 3 months with an employer established in France;
- A certificate from the employer according to a model from the Ministry of the Interior;
- His participation in the company’s research and development project;
- The status of young innovative company (JEI) from their employer
Obtaining recognition by a public body is a long and sometimes difficult process. Small businesses with an innovative project can choose instead to be recognized as an innovative start-up (JEI).
Their employees participating in company projects can then benefit from the Talent Passport Visa.
Tax advantages for young innovative start-up
The company recognized as a Young Innovative Company can not only employ employees under the Talent Passport regime, it also benefits from tax advantages.
During its first profitable year, a JEI can benefit from a total exemption from tax on profits.It can then benefit from a 50% income tax exemption for the following profitable year.
The company also benefits from an exemption from Property Tax for 7 years.
Finally, the young innovative company benefits from a reduction in social charges on the salaries paid to engineers and technicians.
Instead of applying to incubators, you could choose to create a company in France of a specific purpose: JEUNE ENTREPRISE INNOVANTE: “Young innovative start-up”which is, as we have just seen, a privileged status
The status of innovative start-up applies to small and medium-sized enterprises under the age of eight, part of whose expenditure is allocated to research. It allows tax and social exemptions and many social benefits.
It also enables your employees to apply for a Talent Passport.
The request to be recognized as a young innovative start-up must be filed with the head office of Tax Service before which we can represent you.
NEED ASSISTANCE?