Our experts will guide you in your choice of domicile.
Our experts will guide you in your choice of domicile.
Setting up a business in a ZFU offers attractive advantages, particularly tax breaks and hiring incentives. This strategy encourages economic development in high-potential areas, while supporting local employment. A strategic choice for entrepreneurs aiming for growth and positive social impact.
Companies setting up in urban tax-free zones benefit fromtax exemption on all their profits for a period of five years. They then benefit from a progressive tax allowance under certain conditions. The rate applied is 100% for company profits during the first five years of operation. It drops to 60% between the sixth and tenth years of the company's life.
From the eleventh to the twelfth year, and from the thirteenth to the fourteenth, the rebates are 40% and 20% respectively. This tax advantage does not exceed 50,000 euros over one year and 200,000 euros over three consecutive years.
For companies created after January 1, 2015,setting up in a ZFU offers a tax exemption on profits for eight years. The allowance is total for the first five years of operation, then 60%, 40% and 20% for each of the remaining three years.
Companies in ZFU are fullyexempt from social security contributions for the first five years after setting up. Other conditions vary according to the size of the structure. If your company has more than five employees, the exemption will be degressive over the following three years. The allowance will be 60% in the sixth year of operation, then 40% and 20% in the seventh and eighth years.
If your company has fewer than 5 employees, the exemption from employer social security contributions in ZFU is maintained for nine years. However, the allowance only applies to certain employer contributions. The excluded holdings are those of :
Employer's exemptions are not applied when the remuneration of the company's employees exceeds 2 x the SMIC. However, you can obtain a partial reduction in employers' contributions when the employee's remuneration is 1.4 x the SMIC.
This exemption applies to companies created before January 1, 2015 and located in an urban free zone. They can benefit from a total reduction in their business property tax (cotisation foncière des entreprises - CFE) for five years.
This exemption then becomes partial over a period of 3 or 9 years. In this case, too, and in compliance with European law, the aid granted to new companies does not exceed 200,000 euros.
The advantages of locating in a ZFU only apply when your company meets a number of criteria. It must not have sales of €10 million or more. Your company must not have more than 49 employees. It must also be linked to a commercial, craft or professional activity.
However, some areas are excluded:
If your company is more than 25% owned by another company, it must not have more than 250 employees. Its annual sales excluding VAT must not exceed 50 million euros, and its annual balance sheet must not exceed 43 million euros.
In the specific case of exemptions on profits, at least 50% of your company's employees with at least one year's seniority must live in a ZFU. You must also have hired employees on permanent or fixed-term contracts for a period of at least 12 months. This condition applies to companies with more than one employee that were created after January 1, 2015. The tax exemption scheme for urban tax-free zones is valid until December 31, 2024.
If you are eligible for the exemptions promised when you set up in an urban free zone, your company must inform the tax department or URSSAF (Union de recouvrement des cotisations de Sécurité sociale et d'allocations familiales) of your intention to take advantage of them. This must be done within the first six months following the start of the company's activities.
Only companies with a physical presence (head office) and providing services in the urban free zone can benefit from the advantages provided for by the law. As a business owner or entrepreneur, you need to send in a statement of exempt profit and a declaration of income. Wait three months for a reply. If no reply is received, the exemption is automatically granted.
An annual declaration of labor movements must be sent to URSSAF and DREETS (Direction régionale de l'économie, de l'emploi, du travail et des solidarités) by April 30 of each year to benefit from contribution exemptions. Each time you hire a new employee, you must also submit a declaration prior to employment.
To set up your business in an urban free zone, there are several options open to you, such as office rental or commercial domiciliation. Depending on your preferences and the means at your disposal, one of these options may be more suitable than the other. If you're looking for a commercial domiciliation solution in a ZFU, SeDomicilier can help.
We can also help you transfer your company's registered office to this area. Our team can even help you update your company's articles of association, as well as carrying out similar administrative procedures such as setting up a new company.
When your company sets up in a ZFU, it benefits from major advantages such as tax, social security contribution and property tax exemptions on its sales. To take advantage of these benefits, companies located in a ZFU must meet specific, strict conditions.
For example, access to the various advantages is restricted to just a few business sectors. Your company's head office must also be located in one of France's "zones franches urbaines" by December 31, 2024.
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