A new and unfamiliar status: from now on, students will be granted a specific legal status for business creation.

“The implementation of the new JEU (Young University Enterprise) status aims at encouraging business creation by students or by any other individual involved in research work within higher education institutions,” explains Jacques Leglise, Lower Normandy’s regional delegate for research and technology (DRRT), in charge of monitoring associated projects. In fact, it is an extension of the JEI - Jeune Entreprise Innovante (Young Innovative Enterprise) status, and of its associated benefits⁽¹⁾ , aimed specifically at young university business projects.

Of course, the status implies respecting certain conditions: the JEU must be created by a student or by a member of a higher education institution, in order to offer further development prospects for research work. It must be managed or directly held, at least 25%, by a student, a Masters or a PhD graduate since less than 5 years or by a professional lecturer or researcher. Within such conditions, the minimum 15% of turnover to be spent on research costs in order to benefit from the JEI status does not apply.

The aim is for these you business creators to enjoy the same tax benefits as JEIs.
Consequently, they also apply to JEUs: total exemption from the annual set taxation; exemption from employers’ contributions for personnel appointed to positions within R&D projects, total exemption of taxation on profit for the three first profit-making periods (50% exemption for the two subsequent periods); exemption from property tax on built premises and from professional tax.

The JEU’s activity must essentially focus on developing research work, the implementation conditions of which are set down in an agreement between the created company and the higher education institution. “It is a brand new status and, as yet, we have no JEU’s in Lower Normandy; however, we expect to see the first creations this year, if we base our hopes on the number of winners of the Ministry’s innovative business creation competition,” adds Jacques Leglise.

(1) The JEI - Jeune Entreprise Innovante (Young Innovative Enterprise) status applies to SMEs less than 8 years old, working in new activities and whose R&D costs are at least 15% of their turnover. The scheme aims at providing significant support for young businesses, highly active in terms of R&D, and at enabling them to get over the difficult hurdle of their first years of business development. Today, there are 28 JEIs in Lower Normandy, 9 of which were created in 2007.

Jacques Leglise
Regional Delegate for Research and Technology
Tél. : 02 31 46 50 12

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