Jeune Entreprise Innovante (JEI) - Young Innovative Company Status

JEI status provides significant tax and social charge exemptions for qualifying startups. Combined with CIR, it creates a powerful incentive package.

JEI Qualification Criteria

Your company must meet ALL criteria:

1. Age: Less than 8 years old (from incorporation)

2. Size: - Fewer than 250 employees - Annual turnover < €50M OR balance sheet < €43M

3. Independence: Not 25%+ owned by another company (exceptions for VCs and individuals)

4. R&D Intensity: R&D expenses ≥ 15% of total expenses

5. New Company: Not created through restructuring, merger, or extension

JEI Benefits

Social Charge Exemptions: - 100% exemption on employer social charges for R&D personnel - Applies to researchers, engineers, project managers directly involved in R&D - Capped at €7,898.66 per person per year - Can represent 40-45% savings on eligible salaries

Corporate Tax Exemptions: - 100% exemption on first profitable year - 50% exemption on second profitable year - Applies to profits from innovation activities

Local Tax Exemptions: - Possible CFE and CVAE exemptions (depends on local authorities) - Property tax exemptions in some regions

Maximizing JEI Benefits: Real Example

StartupAI (20 employees, €2M turnover):

Without JEI: - 10 R&D employees at €60,000 average gross salary - Employer social charges (42%): €252,000 annually

With JEI: - Social charge exemption: €7,898.66 × 10 = €78,986 saved - Plus corporate tax exemption on first €150,000 profit - Total annual benefit: ~€100,000+

JEI Application and Maintenance

Initial Application: 1. Self-assessment of criteria 2. Request rescrit (optional but recommended) 3. Apply exemptions from first eligible payroll 4. File annual declaration with R&D expense proof

Ongoing Compliance: - Monitor R&D ratio quarterly - Track employee changes - Document R&D projects - Prepare for potential audits

Common Pitfall: Losing JEI status due to dropping below 15% R&D threshold during growth. Plan accordingly.