Innovative young companies: what is new on 1 January 2024?

Creation of the Young Innovative Growth company (JEIC) status

Young innovative growth companies (JEICs) are defined in the 2024 budget as companies with research expenditure of between 5% and 15% of their charges.

Like young innovative companies, JEICs are exempt from property contributions from companies and from taxation on built property.

These companies must meet economic performance indicators to be specified by decree.

To be a JEIC, the following conditions must be met:

• be an SME: it must employ less than 250 people and carry out a turnover less than € 50 million or must have a total balance sheet less than € 43 million ;
• have been created since under 8 years to benefit from social and tax exemptions (the company permanently loses the status of JEI in the year of its 8^e birthday);
• have capital held for 50% at least by the following persons or entities:
  
  • natural person: individual entrepreneur (EI), individual;
  • other JEI owned at least 50 % by natural persons;
  • investment business;
  • association or foundation recognized as being of public interest of a scientific nature;
  • public research and teaching establishment or one of its subsidiaries.
• exercise a new activity : the company was not set up as part of a merger, restructuring, extension or takeover of existing activities

No income tax exemption for JEIs created as of 2024

The 2024 budget foresees that young innovative companies (JEIs) set up from 1^er january 2024 are not eligible for the income tax exemption. So it's about the JEICs.

This provision was originally intended to apply to JEIs created before December 31, 2025.