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Attractiveness of France and Digital Economy: What’s New for Start-Ups in 2020?

13 janvier 2020 Affaires
Vue 583 回

Will France manage to be more attractive for start-ups in 2020? The association France Digitale says yes. France Digitale, a promoter of digital economy to public authorities, analysed and commented the announcements of the French Secretary of State for the Digital Industry.

The network of French digital entrepreneurs and investors, France Digitale, claims a crystal-clear objective: “France must become the HUB of all start-ups in Europe”! To achieve its goal, the association works to obtain an incentive legal framework for start-ups. France Digitale is convinced to have in hand “all assets necessary to create the next digital champions in France and Europe, and to help them grow”. The association recalled that the Finance Bill 2020, published in the French Official Journal, endorsed two new progress actions: the increase of incentives for employees, and the “tax boost” to launch a start-up. The Secretary of State for the Digital Industry considers that these two are essential and are “critical measures for start-ups and their employees”.

 

Incentives to Retain Employees and Attract Foreign Talents

The Trust Unit Purchase Warrants for Business Creators (BSPCE, for “Bons de Souscription de Parts de Créateur d’Entreprise” in French) are the most common equity compensation plan used by start-ups for their employees. These warrants give the right to purchase start-up trust units under specific conditions, and they have become the “prime tool to involve employees in the start-up’s success”.

In 2020, foreign start-ups present in France will now have the opportunity to offer BSPCEs to their employees. It’s a critical measure to help France “become more attractive, in a post-Brexit context”.

For Cédric O., Secretary of State for the Digital Industry, this action will also “boost employee recruitment and retention” in these companies, “and this will create in 2020 over 25,000 new direct jobs all over France and for all levels of skills”.

 

Young Innovative Business Scheme Implemented to Network Start-Ups in France

The Jeune Entreprise Innovante scheme (JEI, Young Innovative Business) helps SMEs that are at most eight years old to benefit from exemptions from social security contributions and tax exemptions.

In 2020, the JEI scheme, which benefitted 3,900 businesses in 2019 (about one out of two start-ups) is maintained until 2022. For France Digitale, “maintaining this scheme will foster business creation in all regions”.

The association concluded: “The 2020 budget is a nice progress to improve the attractiveness of France” ...

 

To know more: https://medium.com/@FranceDigitale/pourquoi-la-france-sera-plus-attractive-pour-les-startups-en-2020-15137af0ec17

Check out the government website:https://www.economie.gouv.fr/loi-finances-2020-mesures-fortes-start-ups-salaries




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