May 22, 2022

Young innovative company: example and list

A young innovative company is a special status, allowing a company specializing in research and development to benefit from multiple tax breaks. Here is some information on the benefits associated with JEIs.

What is a young innovative company?

A young innovative company (JEI) is an SME, which invests in research and development. A JEI can benefit from tax and social relief, such as an exemption from tax on profits or a reduction in employer contributions. To obtain the status of young innovative company, it is essential to meet certain conditions:

  • be a company less than 8 years old;
  • hire less than 250 employees;
  • incur research and development expenses representing at least 15% of the total expenses incurred by the company;
  • be a new company (and not a restructuring or an extension of activity) with an innovative activity;
  • be a company owned at least 50% by natural persons directly or indirectly.

Among the JEIs, there is a particular category: the young university enterprise (JEU). A GAME must be held for at least 10% of its capital by students and have concluded an agreement with a higher education institution. Its activity must be linked with research work.

Young innovative company and Bofip

The site of the Official Bulletin of Public Finances (BOFIP) specifies all the procedures for obtaining tax reductions and tax relief for JEIs. The essential criteria for earning its status as a young innovative company are also indicated in detail.

Young innovative company: example

Among the many JEIs, we can mention the start-up Simplébo. This company has developed a unique technology, which automates 80% of website creation. Thanks to this innovation, Simplébo can offer a website creation service from A to Z, at unbeatable prices.

Young innovative company: the list

There is no official list of JEIs, but some sites list French start-ups specializing in research and innovation. In 2015, 3,519 companies benefited from the status of young innovative companies, enabling them to take advantage of tax relief such as exemption from employer social insurance contributions. Other benefits, the reduction of corporation tax and a total exemption from annual flat tax.

The benefit of the social exemption granted to the JEI does not require any prior request or declaration to the Urssaf. The young innovative company must file a file with the tax services department on which it depends, during the first 10 months of its activity. An example of a request for an opinion is available on the website of the Ministry of Higher Education and Research or on the website www.impots.gouv.fr.