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Formation or take-over of a business, or becoming self-employed

Early redemption in case of formation or take-over of a business, or becoming self-employed.

By the saver, the saver’s spouse or civil partner, or one of the saver’s adult children. 

According to French law

Deadline: 6 months

Eligible schemes: PEE (company savings plan) / PEG (group savings plan) / PEI (inter-company savings plan)

Supporting documents to accompany the redemption request

Select your situation depending on the legal status of the business venture:

Sole proprietorship or unincorporated sole trader (French entreprise individuelle or micro-entrepreneur, formerly auto-entrepreneur)

Trigger event date: signature date of declaration on honour (attestation sur l’honneur)

And

  • Acknowledgement of registration with a business administration centre (Centre de Formalités des Entreprises - CFE)

Trigger event date: business registration completion date

And

  • Acknowledgement of registration on the Trades and Companies Register (Registre de Commerce et des Sociétés - RCS) or a K-bis certificate of registration
    • Or Acknowledgement of registration on the skilled trades register (Répertoire des Métiers) or a D1 certificate of registration
    • Or Acknowledgement of registration on the agricultural register (Registre de l’Agriculture).

Trigger event date: signature date of declaration on honour (attestation sur l’honneur)

And

  • Provisional sales contract for the business as a going concern

Trigger event date: sale date

And

  • Deed of sale

And

  • Acknowledgement of sale registration on Trades and Companies Register (RCS)

Company

Trigger event date: signature date of declaration on honour (attestation sur l’honneur)

And

  • Draft company articles making it possible to identify the person exercising effective control over the company

And

  • Acknowledgement of receipt of registration request with a business administration centre (Centre de Formalités des Entreprises - CFE)

Trigger event date: registration date

And 

  • Acknowledgement of registration on the Trades and Companies Register (Registre de Commerce et des Sociétés - RCS)
    • Or K-bis certificate of registration

And

  • Company articles of association
    • Or Share acquisition agreement making it possible to identify the person exercising effective control over the company

Trigger event date: signature date of declaration on honour (attestation sur l’honneur)

And

  • Draft amended company articles making it possible to identify the person exercising effective control over the company

Trigger event date: stocks or shares sale date

And

  • Acknowledgement of company share sale registration on Trades and Companies Register (RCS)
    • Or Statement from the company confirming the transfer of shares is recorded in the company’s register of shareholders

And

  • Final amended company articles making it possible to identify the person exercising effective control over the company

Regulated independent professional

Trigger event date: professional body registration date

And

  • Acknowledgement of registration with the relevant governing professional association, society or organisation

And 

  • Acknowledgement of registration with the French social security contributions collection agency (URSSAF)

And

  • Copy of articles of association indicating that the account holder is a member partner (in the case of a partnership between members of a regulated profession (Société Civile Professionnelle - SCP)

Acquisition of shares in a producers' co-operative society (Société Coopérative de Production - SCOP)

Trigger event date: share acquisition date

And

  • Share certificate issued by the co-operative society
    • Or Amended society articles recording a new capital contribution and the granting of member status

The amount of the redemption is then equal to the value of the shares acquired by the relevant party.

Additional information

Conditions

Release, whether in full or in part, of holdings of assets takes the form of a single payment; it cannot therefore be phased or paid in instalments.

The monies released must be used only and entirely for the financing of the business (constitution of authorised capital, purchase or lease of a going concern, set-up expenses, cost of equipment, etc.).

The redemption therefore equals the financial requirements in connection with business formation or take-over.

The business formation/take-over may be carried out by the saver, the save’s spouse or civil partner, or one of the saver’s legally adult children (please see the Questions / Answers section below for the supporting documents to be provided by any individual other than the account holder).

The business formed or taken over must be located in France or elsewhere in the European Union (in which case equivalent supporting documents are to be provided with a sworn translation into French).

A manufacturing, commercial, artisanal/small-scale or agricultural business venture can be operated as a single-member sole proprietorship or as a company, provided however in the latter case that the beneficiary exercises effective control over the company (see the Questions / Answers section below).

Excluded events

  • Business formation outside the European Union
  • Formation of a property holding company (Société Civile Immobilière - SCI) or an investment company
  • Formation of company home to a number of independent professionals (Société d'Exercice Libéral - SEL)
  • Formation of a resource pooling company with professional members (Société Civile de Moyens - SCM) or a non-trading professional company (Société Civile Professionnelle - SCP) where the company objects clause states no professional or business purpose
  • If the relevant party already exercises control over the company (within the meaning of Article R.5141-2 of the French Labour Code) and he or she buys further shares in the company
  • Any such transaction conducted for the account holder’s cohabiting partner
  • Financing of projects within an existing business

Questions / Answers

Any person who:

  • Either holds, personally or along with a spouse, civil partner or cohabiting partner or forebears or issue, more than half of the company’s equity, with his or her personal share being at least 35% of said equity
  • Or is the most senior executive of the company and who holds, personally or along with a spouse, civil partner or cohabiting partner or forebears or issue, at least one third of the company’s equity, with his or her personal share being at least 25% of said equity, and provided that no other shareholder directly or indirectly holds more than half the equity.

In view of France’s range of legal forms, most senior executive means:

  • For a public limited company (société anonyme - SA): the chief executive or president/chairman of the executive/management board or the sole CEO/managing director
  • For a simplified joint-stock company (société par actions simplifiée -SAS): the president/chairman
  • For a limited liability company (société à responsabilité limitée - SARL): the chief executive/managing director
  • For a single shareholder private limited company (entreprise unipersonnelle à responsabilité limitée - EURL): the owner-manager
  • For a limited partnership (société en commandite - SCA or SCS): the director
  • For a general or ordinary partnership (société en nom collectif - SNC): lead partner

The capacity held by the most senior executive (the job title) is shown on the K-bis registration certificate from the Trades and Companies Register (Registre du Commerce et des Sociétés), held by the registry of the commercial court with jurisdiction over the company’s registered office.

For a spouse:

  • Copy of marriage certificate
    • Or Copy of family register (livret de famille)

For a civil partner:

  • Copy of birth certificate recording that a civil partnership has been concluded
    • Or Certificate issued by the district court registrar or the notary who registered the formal statement of civil partnership

For a child:

  • • Copy of family register (livret de famille)
    • Or Copy of birth certificate

No, the relevant regulations restrict release of holdings for company formations in progress for manufacturing, commercial, artisanal/small-scale or agricultural business ventures.