Financial aids for setting up your business in France

Are you actively looking to establish your business in France? Are you thinking about setting up abroad, but are not sure which is the best country to set up your business?

The French government has created several financial and fiscal incentives for international companies looking to expand into France. These can vary depending on the region and the urban area, as well as your businesses’ needs. They are often very attractive and make it much easier to finance your international development.

The public financial aids also differ depending on the size of the investment, its location and the type of company conducting the project. You may be able to receive more funding from a specific region if that region is actively trying to attract businesses like yours, or if you are developing an innovative product or service.

Business Parks’s team of experts is able to advise you on which regions of France are looking to invest in companies like yours.

Different public aids to help you establish your business in France

French government financial aids come in several forms: subsidised or interest-free loans, grants for setting up a physical presence (office, factory, laboratory…) or for R&D, government guarantees, reduced costs to rent or buy buildings or land, tax exemptions, and covering expenses, such as training costs for new employees.

The French government has also defined specific geographical areas which allow you to benefit from certain financial initiatives. These include:

• Urban Free Zones: Setting up your business in an Urban Free Zone grants you exemption from company taxes (100% for the first 5 years, 60% the 6^th year, 40% the 7^th year and 20% the 8^th year.)
• Employment Area to be Revitalized (BER): Companies who set up their business in a French employment area to be revitalized are exempt from paying social security charges for their employees.
• Rural Zone to be Revitalized (ZFR): Businesses with up to 10 employees who decide to set up within a rural zone to be revitalized in France receive exemptions on company taxes.
• Priority City Districts (QPV): Setting up your business in a Priority City District in France allows you to benefit from reduced company tax rates.
• Finance your expansion to France: a special economic zone

The Caux Seine urban area in Normandy in the north of France decided to conduct an experiment which was a first for France: a special economic zone. This was established in 2018 and is located between two of Normandy’s key cities, le Havre et Rouen.

This zone offers attractive economic and fiscal advantages for industrial companies from both France and abroad. Companies who set up in the zone are completely exempt from paying various regional and municipal taxes for the first year. They then receive a 30% tax reduction for the two following years, and a reduction of 50% for their fifth year.

If you set up your business in your zone, you will also benefit from the ‘welcome pack’ for your employees and their families, to facilitate their arrival in France.

Business-Parks.com: supporting your expansion to France, for free

If you would like to know more about the opportunities to set up your business in France, or the public financial aids and incentives you could benefit from, feel free to get in touch with Business Parks’s team of experts. We are able to advise you on the regions of France that are looking to invest in companies like yours and the different ecosystems relevant to your industry.