What is ARCE?
ARCE (Aide à la reprise et à la création d'entreprise) is a scheme set up by Pôle emploi specifically for jobseekers. More concretely, ARCE provides financial assistance in the form of a lump sum to jobseekers wishing to set up, take over or become self-employed.
Prior to July 1, 2023, this capital sum corresponded to 45% of the amount of benefits that the jobseeker would have received if he or she had remained unemployed for the entire statutory compensation period. Since July 1, the ARCE rate has been equal to 60% of a capital sum equivalent to the jobseeker's remaining ARE (Allocation d'Aide au Retour à l'Emploi) rights. A deduction of 3%, corresponding to the financing of supplementary pensions, will be applied to the amount of the capital paid.
Good to know: ARCE can be combined with ACRE (Aide aux Créateurs ou Repreneurs d'Entreprises) and is tax-free.
To qualify for business start-up assistance, jobseekers must apply to the Pôle emploi agency managing their unemployment benefit file. They must also present proof that they have set up or taken over a business. This may be a Kbis extract or proof of registration with the RNE (national register of companies).
In addition, jobseekers must have obtained the ACCRE (aide aux chômeurs à la création ou à la reprise d'entreprise), now known as the ACRE. Under this scheme, you will be exempt from social security contributions for one year. Jobseekers must also comply with other conditions.
The jobseeker must be in receipt of ARE benefits from the Pôle emploi at the time of setting up the business. In addition, the jobseeker must be in receipt of unemployment benefit. People who have been made redundant and have taken steps to set up or take over a business during their notice period, mobility leave or redeployment leave may also benefit from ARCE.
Please note : employees who set up or take over a business before the end of their notice period, or in other situations, are not eligible for ARCE, as they are not entitled to ARE.
How is ARCE paid out?
Business start-up assistance is paid in two equal instalments. The first payment, equivalent to half the amount of the ARCE, is made at the start of the business. It can also be paid as soon as the conditions for entitlement are met and the future beneficiary ceases to be registered on the jobseeker's list.
The second instalment is paid six months after the date on which the company was set up or taken over. This payment is made on condition that the beneficiary can prove that he or she is still carrying out the activity for which the aid was granted. This can be done by means of any supporting document, such as a sworn statement or any other document required by Pôle emploi.
ARCE or ARE: which aid should you choose when setting up your business?
Jobseekers are not obliged to apply for ARCE if they decide to set up their own business. They can, for example, launch a start-up while continuing to receive their ARE. In fact, the French government allows auto-entrepreneurs to combine their unemployment benefits with income from their ancillary professional activities.
Pôle emploi will, however, take the company's sales figures into account when calculating the amount of ARE to be paid. However, the sum of the company's sales and the ARE must not exceed the base used to calculate the amount of unemployment benefit.
To apply for ARCE, the future auto-entrepreneur needs to be certain that he or she actually needs capital when setting up the business. If this is not the case, they can still receive the ARE while setting up their company.
Written by our editorial expert
August 4, 2023
