Support schemes for companies in difficulty

Verified 02 March 2023 - Directorate for Legal and Administrative Information (Prime Minister)

A company in financial difficulty may benefit from several schemes. It can obtain payment periods for its social and tax debts by contacting the administration concerned or the Commission of Heads of Financial Services (CCSF). The Codefi: titleContent and the Ciri: titleContent can help them find solutions for their restructuring. Finally, the Credit Mediation assists the company that has had a refusal of bank credit.

The company in difficulty may claim payment periods or a delivery of late surcharges by bringing the matter before the relevant administration (Urssaf or tax authorities). The Commission des chefs des services financiers (CCSF) may also be consulted when the company is up to date on declarations and payments.

Complaint to the administration

The company must go to the Urssaf for a social debt and to the company tax service (SIE) for a tax debt.

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Social debt

When a company encounters difficulties in meeting its social deadlines, it may request payment periods or a delivery of late surcharges.

She needs to log in to her Urssaf account online:

Create your Urssaf space (account) online

Once on the company dashboard, you have to click on the right in the “one-click services” section and then on the icon “request a discount of late surcharges”.

The Urssaf provides a step-by-step guide to request payment periods or a delivery of late surcharges.

Please note

In order to benefit from a rebate of late surcharges, the company must have paid all the contributions and contributions which resulted in those surcharges. It must also have initiated a clearance plan and comply with it.

Tax debt

In the event of temporary or exceptional difficulties in paying its tax installments, the company in difficulty may request a payment period company Tax Service (SIE).

Who shall I contact

The application for payment or installment payment shall include specific proposals on the proposed timetable. The granting of payment periods is not systematic.

FYI  

To request a payment schedule, the company must be up-to-date on its reporting obligations and generally meet its tax deadlines.

Referral to the CCSF

How do I enter the CCSF?

The company in difficulty may itself refer the matter to the Commission of Heads of Financial Services (CCSF). It brings together the representatives of official creditors, i.e. the directors of the tax services, the Urssaf and the representatives of the various compulsory basic social security schemes.

The CCSF may also be referred directly by one of its members or by a public accountant as part of its detection-prevention mission.

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General case

The Commission of Heads of Financial Services (CCSF) brings together the representatives of official creditors, i.e. the directors of the tax services, the Urssaf and the representatives of the various compulsory basic social security schemes.

To seize it, the company in difficulty must submit a file setting out its financial situation to the Permanent Secretary (SP) of the CCSF of the DDFIP of the department of its head office.

Who shall I contact

The file shall specify the following information :

  • Company name, legal form, address, Siren, Urssaf number, number of employees
  • Origin of the financial difficulties and the recovery measures envisaged
  • Presentation of the company's situation
  • Honor certificate justifying payment of the wage share of social security contributions
  • Last tax book of the company
  • Proof of the financial difficulties and the company's present cash position
  • Revenue and Cash Flow Forecast Statements for the Coming Months
  • Last balance sheet closed

TYPE

VSEs, i.e. companies with fewer than 10 employees and an annual turnover or total balance sheet of less than €2 million, may submit a simplified file. It must be sent to the Permanent Secretary (SP) of the CCSF of the DDFIP of the department of its head office.

File for referral of the CCSF by the VSEs

Who shall I contact
What does the RSCC settlement plan include?

Upon review of the record, the RSCC may establish a installment settlement plan social and fiscal debts (payment schedules). The adoption of this settlement plan results in the suspension of proceedings against the company.

The payment schedule concerns social debts (employers' contributions Urssaf), tax (territorial economic contribution, VAT, business tax) and unemployment insurance.

When the plan is granted, the company makes a one-time monthly transfer to the Departmental Public Finance Directorate (DDFiP), which distributes the funds among the creditors concerned.

The deadlines granted by the CCSF are adopted for a maximum duration of 20 months.

Warning  

The company must be up to date with the filing of its tax and social security returns and the payment of its contributions and payroll taxes and the levy at source of income tax on its employees.

What happens after the settlement plan is completed?

At the end of the plan, company difficulties may require the opening of a collective proceedings.

When the company is in conciliation procedure, safeguard or judicial redress, it may then request a partial rebate certain surcharges, penalties and prosecution costs:

  • In the case of conciliation, this request must be made in a five-month period from the initiation of the procedure.
  • In the case of safeguard or judicial redress, the period shall be 6 months.

This request may also be made by the conciliator, the administrator or the ad hoc trustee.

Warning  

Debt forgiveness does not concern VAT and registration rights.

When companies encounter problems with funding for their business or development, they can be supported by one of the following:

  • Departmental Committee for the Examination of Problems of company Financing (Codefi) for companies with less than 400 employees
  • Interministerial Committee on Industrial Restructuring (Ciri) for companies with more than 400 employees

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Companies with less than 400 employees

A company that encounters problems with funding may refer the matter to the Departmental Committee for the Examination of Problems with company Funding (Codefi). It is a local inter-ministerial body under the authority of the prefect. It represents all government departments in guiding and informing companies in difficulty, in all sectors.

However, it must not be in a situation where there is no prospect of recovery.

The company must send its request by post to the permanent secretariat of the Codefi at its head office.

It is located on the DGFIP: titleContent or the company Tax Service (SIE) on which it depends.

Codefi may propose one of the following solutions:

  • Order company-agreed audits to diagnose the situation
  • Seeking financial solutions for the recovery or restructuring of the company
  • Grant restructuring loans from the Fund for Economic and Social Development (FDES)

Companies with more than 400 employees

The Interdepartmental Committee on Industrial Restructuring (CIRI) is attached to the Treasury Branch. It helps companies with more than 400 employees who are facing economic difficulties to find solutions to keep their business going.

It defines a transformation plan alongside the manager, then negotiates it and specifies its financing with the various parties (creditors, shareholders). It can also grant loans under certain conditions.

A company that has difficulty obtaining or repaying a bank loan or is unable to repay PGE: titleContent may apply to the Credit Mediation

It is a free and confidential service backed by the Banque de France for all companies including micro-entrepreneurs.

To enter the company Credit Mediation, you must file a file online:

File a company credit mediation file

FYI  

One trusted third party mediation can advise companies free of charge and help them complete this file.

The credit ombudsman checks the admissibility of the application and contacts the company within 48 hours of receiving the file.

He then defines an action plan with the entrepreneur. Banks which have refused to grant a loan to the company shall be informed of the opening of the mediation. They have 5 working days to reconsider their position. At the end of that period, the credit ombudsman shall contact the company to take stock on developments.

Warning  

The credit ombudsman cannot intervene when the company is in cessation of payments.

Who can help me?

The public service accompanying companies

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