Business creation leave enables entrepreneurs to launch their project without resigning

Business creation leave: everything you need to know!

Leave to set up a business enables many employees to make an effective transition from their former activity to entrepreneurship. It meets an increasingly recurrent need, following the boom in entrepreneurship. Here's how it works.
Starting a business
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Business creation leave is a scheme enabling all employees to take up to one year's renewable leave to carry out a business creation or takeover project. It gives them the certainty of returning to their job in the event of failure.

In this way, they can embark on their project without having to resign. This scheme is gaining in popularity with the growth of entrepreneurship, and the many employees who have decided to strike out on their own!

Let's find out everything you need to know about business creation leave in France!

Choosing the right address for your head office is essential when setting up a business.

What are the conditions for taking business creation leave?

An employee can take leave to set up a business for only two reasons:

They must have 24 months' seniority, consecutive or otherwise, with their original company. If he or she belongs to a group, time spent in French or international subsidiaries is also taken into account.

Please note that some collective or company agreements modify the length of service required. The maximum duration of leave may not exceed one year, renewable for a further year.

How do you apply for business creation leave?

Employees must inform their employer in writing of their intention to take leave, specifying the date and duration of the leave. The request must be sent at least 2 months before the requested departure date. In your letter, you should also specify the nature of the business you wish to set up or take over.

The terms and conditions of the request and the time limits for providing information depend on your profession, and are set by the applicable collective bargaining agreement (or company agreement).

The employer can formulate three types of response:

  • A leave of absence agreement, and approval of the desired departure date
  • A leave of absence agreement, and postponement of the desired departure date
  • Refusal of leave

In the absence of a reply within 30 days, the agreement to leave is deemed to have been given.

During the entire period of leave, the employee is not paid. It is possible to negotiate part-time leave for business creation. The conditions for deferring paid leave are specified in the applicable collective agreement. Otherwise, they can be carried over, at the employee's request, for up to 6 years.

At the end of the leave, the employee may :

  • Return to their original company. If he chooses this option, he must inform his employer at least 3 months before the end of the leave.
  • Terminate his salaried employment contract. If he chooses this option, he must inform his employer at least 3 months before the end of the leave. The employment contract is terminated in accordance with the conditions laid down by law. However, the employee is exempt from paying compensation in lieu of notice.
  • Renew the leave for a further year. If he chooses this option, he must inform his employer at least 2 months before the end of the leave.

How do you get your business project off to a good start?

The first decision to make when setting up your company is to choose theaddress for your registered office. Several alternatives are available to you.

Choosing your own home as the location for your head office may seem a simple and inexpensive choice. In reality, you need to bear in mind that many condominium managers refuse to allow head offices to be located in the building. Also, this option cannot be chosen for more than 5 years.

This choice forces you to expose your personal address to the general public, by disclosing it on all your official documents (business cards, order forms, quotations, invoices, etc.).

The leasing commercial premises is a comfortable solution, but one that is administratively and financially onerous. Guarantees, deposits, fixed assets and monthly rents must be paid. Commitments and notice periods must be respected.

On the other hand domiciliation companies enable all entrepreneurs to have a prestigious head office address, lighten their daily routine and save on taxes. What are domiciliation companies? Domiciliation companies are service providers who offer to choose your registered office address from a wide range of prestigious and prestigious addresses.

Have you ever dreamed of being domiciled on the prestigious Avenue des Champs-Élysées, for example? It's now possible, at a fraction of the cost.

A prestigious domiciliation considerably enhances the credibility of your project in the eyes of all your commercial and financial partners.

Using a domiciliation company can also considerably lighten your daily workload. From customized offers are created for all entrepreneurs wishing to outsource time-consuming and tedious tasks : daily mail management, switchboard, administrative and legal assistance, meeting room hire, etc.

It's the ideal, simple and inexpensive alternative to choosing your own home or renting commercial premises!

With SeDomicilier, you can obtain your certificate of domiciliation in less than 5 minutes, in a 100% online process. All your services are then available in a personalized, secure virtual office.

Business domiciliation allows you to focus on the missions with the highest added value: those that drive the growth and success of your project!

Written by our expert Paul LASBARRERES-CANDAU
November 9, 2020
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