{"id":2323,"date":"2025-05-16T18:31:48","date_gmt":"2025-05-16T17:31:48","guid":{"rendered":"https:\/\/www.jcarmand.com\/en\/?p=2323"},"modified":"2025-07-01T16:05:23","modified_gmt":"2025-07-01T15:05:23","slug":"subsidiary-and-jei","status":"publish","type":"post","link":"https:\/\/www.jcarmand.com\/en\/tax-incentives-and-subsidies\/subsidiary-and-jei\/","title":{"rendered":"Subsidiary and JEI: is it possible?"},"content":{"rendered":"

Can a subsidiary of a foreign group benefit from the JEI\u00a0 (Jeune Enterprise Innovante – in French, Young Innovative Company<\/a>) scheme? Yes, under certain conditions. <\/strong><\/p>\n

Subsidiaries and JEI – conditions linked to the genuinely new nature of the business.<\/strong><\/h2>\n

Yes, provided that the subsidiary is independent and carries out a genuinely new activity (see above). Whether a subsidiary is new is a question of fact. But in any case, the subsidiary must not be economically dependent on its parent company to qualify for Young Innovative Company status.<\/p>\n

And to the quality of the owners of the parent company.<\/strong><\/h2>\n

The subsidiary must be directly or indirectly 50% owned by natural persons. By indirectly, we mean a single level of intermediation. In other words, the subsidiary of a parent company can obtain the JEI. On the other hand, the subsidiary of a grandparent company cannot. Investment funds are equated to natural persons if they are at arm’s length from the companies they own<\/a>. In other words, they have to be operationally independent of these companies.<\/p>\n

Subsidiaries and start-ups: assessment of SME status in the Community sense.<\/strong><\/p>\n

To verify SME status in the EU sense, the parent company must aggregate its balance sheet, sales and workforce totals with those of its subsidiaries and sub-subsidiaries, according to the following criteria: below 25% shareholding, no aggregation; between 25% and 50%, proportional aggregation; above 50%, 100% aggregation. Example: if company M owns 42% of A, 58% of B and 15% of C, the aggregation of sales, balance sheet, income statement and workforce will be 100% M, 42% A, 100% B.<\/p>\n

Concrete cases where subsidiary and JEI (Young Innovative Company) are possible<\/strong><\/p>\n

The JEI could therefore apply to a subsidiary created by a parent company, which does not carry out any R&D activities, and which decides to house these in its subsidiary. It makes no difference whether the parent company is located in France or abroad.<\/p>\n","protected":false},"excerpt":{"rendered":"

Can a subsidiary of a foreign group benefit from the JEI\u00a0 (Jeune Enterprise Innovante – in French, Young Innovative Company) scheme? Yes, under certain conditions. Subsidiaries and JEI – conditions linked to the genuinely new nature of the business. Yes, provided that the subsidiary is independent and carries out a genuinely new activity (see above). […]<\/p>\n","protected":false},"author":1,"featured_media":1485,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-2323","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tax-incentives-and-subsidies"],"yoast_head":"\nSubsidiary and JEI Benefits for Foreign Companies<\/title>\n<meta name=\"description\" content=\"Explore how a subsidiary of a foreign company and JEI (Young Company status can work together under specific conditions for innovative....\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.jcarmand.com\/en\/tax-incentives-and-subsidies\/subsidiary-and-jei\/\" \/>\n<meta name=\"author\" content=\"Jean-Claude Armand\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.jcarmand.com\\\/en\\\/tax-incentives-and-subsidies\\\/subsidiary-and-jei\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.jcarmand.com\\\/en\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Subsidiary and JEI: is it possible?\"}]}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Subsidiary and JEI Benefits for Foreign Companies","description":"Explore how a subsidiary of a foreign company and JEI (Young Company status can work together under specific conditions for innovative....","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.jcarmand.com\/en\/tax-incentives-and-subsidies\/subsidiary-and-jei\/","author":"Jean-Claude Armand","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"BreadcrumbList","@id":"https:\/\/www.jcarmand.com\/en\/tax-incentives-and-subsidies\/subsidiary-and-jei\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.jcarmand.com\/en\/"},{"@type":"ListItem","position":2,"name":"Subsidiary and JEI: is it possible?"}]}]}},"_links":{"self":[{"href":"https:\/\/www.jcarmand.com\/en\/wp-json\/wp\/v2\/posts\/2323","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.jcarmand.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.jcarmand.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.jcarmand.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.jcarmand.com\/en\/wp-json\/wp\/v2\/comments?post=2323"}],"version-history":[{"count":0,"href":"https:\/\/www.jcarmand.com\/en\/wp-json\/wp\/v2\/posts\/2323\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.jcarmand.com\/en\/wp-json\/wp\/v2\/media\/1485"}],"wp:attachment":[{"href":"https:\/\/www.jcarmand.com\/en\/wp-json\/wp\/v2\/media?parent=2323"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.jcarmand.com\/en\/wp-json\/wp\/v2\/categories?post=2323"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.jcarmand.com\/en\/wp-json\/wp\/v2\/tags?post=2323"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}