Starting a Business While Unemployed: All You Need to Know

Being unemployed can be an opportunity to mature and develop an idea for a business creation project. It can be a good opportunity to realize such a project and the opportunity to create one’s own job. Several legal measures encourage people without a job to set up their business. They make it possible in particular to consider setting up a company while continuing to receive unemployment benefits and give the possibility of being exempt for a fixed period of social charges which fall to a company. Explanations.

The possibility of continuing to benefit from unemployment benefits by creating a business

An unemployed person who wishes to create a business can continue to be compensated as a job seeker by Pôle emploi. He can still benefit from the return-to-work assistance allowance (ARE). This unemployment benefit is paid to people who have worked at least 122 days (or 610 hours) during the last 28 months. It is aimed at unemployed people who have not reached the age required to receive an old-age pension and who are able to hold a job.

Receive unemployment benefits in the form of capital (ARCE): a system to help unemployed people who start their business

An unemployed person who receives AER can choose two possibilities: either to continue to receive his compensation every month, until his rights are exhausted or to receive his remaining rights in the form of a lump sum payment. This latter device is called aid for the recovery or creation of a business (ARCE).

ARCE is a concrete and useful financial assistance for an unemployed person starting a business since its amount corresponds to 45% of the remainder of the unemployment benefits which are still due to him on the date of the start of his activity. Capital is often necessary to realize its business project. ARCE is paid in 2 instalments: one part when the activity is created, the other part 6 months later at the request of the unemployed creator.

It should be noted that unemployed people who start a business at the end of their rights, who receive the specific solidarity allowance (ASS) from Pôle emploi, benefit from a specific mechanism to help them start their project: ACRE-ASS. This is financial assistance equivalent to the amount of full-rate ASS, paid during the first 12 months following the date of the creation of the company, within the limit of the rights to open ASS.

To benefit from the ARCE, the job seeker starting a business must make a request to Pôle emploi, with proof of the creation of his business.

Benefit from an exemption from social charges when you are unemployed as a business creator (ACRE)

An unemployed person who creates a business is eligible for assistance to business creators or buyers (ACRE). This is the aid which takes the form of partial or total exemption from social contributions for one year from the start of the activity. To benefit from it, the unemployed business creator must not have already taken advantage of ACRE in the previous 3 years.

The ACRE concerns the exemption from employer and employee contributions related to health insurance, maternity, basic retirement, disability death and family benefits. However, the exemption does not apply to contributions relating to the generalized social contribution (CSG), the risk of accidents at work, compulsory supplementary retirement and vocational training.

An unemployed person who sets up a business does not need to take any special steps to benefit from ACRE. The latter applies automatically if it meets the conditions.

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Specific support for unemployed business creators (NACRE)

An unemployed person starting a business can benefit from a support system: the new support for the creation or takeover of a business (NACRE). This support, managed by the regions since 1 st January 2017 is realized by using, for a period of 3 years maximum, mounting the creation of the project, its financial structuring and start the business.

The NACRE is aimed at job seekers who benefit from the ARE, the ASS, and those who have not been compensated by Pôle emploi for more than 6 months during the last 18 months, but still job seekers.

An unemployed person in one of these situations who wish to benefit from NACRE must contact one of the organizations authorized to provide this support through the services of his region.

The NACRE is aimed at job seekers who benefit from the ARE, the ASS, and those who have not been compensated by Pôle emploi for more than 6 months during the last 18 months, but still job seekers.

An unemployed person in one of these situations who wish to benefit from NACRE must contact one of the organizations authorized to provide this support through the services of his region.