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Article published in November 2021, updated in August 2026
In this article, you will discover:
- The PACTE law, enacted on May 22, 2019, has simplified the lives of French companies and strengthened their social and environmental obligations.
- It introduced two new key concepts: the purpose (optional) and the status of mission-driven company (voluntary but legally framed).
- Since 2019, the number of mission-driven companies has increased from 200 to over 2,400 in France.
- The PACTE law modified the Civil Code so that all companies "take into account" social and environmental issues in their activities.
- It has simplified business creation through a one-stop shop operational since 2023.
What is the PACTE law?
The PACTE law (Action Plan for the Growth and Transformation of Companies), enacted on May 22, 2019, aims to improve the performance of French micro and small businesses. It revolves around three axes: freeing companies, increasing their capacity for innovation, and ensuring them a fair place in society.
It is set against a backdrop of competitiveness lag: France lacked medium-sized enterprises (ETI), with 4,500 ETI compared to 10,000 in Germany. The objective : to revive the growth of companies at every stage of their development, adapting the model of the French company to the challenges of the 21st century.
Measures to improve the performance of micro and small businesses
Simplification of business creation and management
The PACTE law has initiated the simplification of declarative procedures and the centralization of legal information. A single window has been operational since January 2023, replacing the 7 previous formalities networks for the creation, modification, and cessation of businesses.
Reduction of employee thresholds
The 199 employee thresholds generating obligations have been reduced to 3 thresholds (10, 50, and 250 employees), with a 5-year implementation period to allow businesses to gradually adapt.
Elimination of the social contribution
The social contribution (employer contribution of 20% on amounts paid for profit-sharing and incentive plans) has been eliminated for companies with fewer than 250 employees, reducing the cost of employee savings schemes and encouraging their development.
Support for innovation
A fund of ten billion euros has been established for innovation in new technologies, also facilitating the path for researchers wishing to create their own businesses.
CSR measures: a profound transformation of the business model
It is in this area that the PACTE law has had the most lasting impact on companies engaged in a CSR approach.
The mandatory consideration of social and environmental issues
The PACTE law has modified the Civil Code (article 1835) so that all French companies "take into account social and environmental issues" in the management of their activities. This first level applies to all businesses, without exception.
The purpose: giving long-term meaning
The PACTE law introduced the possibility, for companies that wish, to define a purpose included in their bylaws. This optional concept corresponds to a long-term entrepreneurial project, intended to give a deep meaning to everyone's work and respond to a collective interest that goes beyond mere production.
The mission-driven company: a legally framed commitment
The mission-driven company goes further than the purpose. This status allows a company to include specific social and environmental objectives in its bylaws, the monitoring of which is entrusted to a mission committee and submitted to an independent third-party organization. This status is binding: it cannot be discarded without amending its bylaws.
Result: in 2019, there were about 200 mission-driven companies in France. By 2026, there are more than 2,400.
The development of the social and solidarity economy (SSE)
The PACTE law simplified the ESUS label (Social Utility Solidarity Enterprises) and opened public savings calls to all cooperative companies, creating a favorable ecosystem for SSE businesses.
What the PACTE law has concretely changed since 2019
Since 2019, several transformations are measurable:
The single window for business creation has been operational since January 2023, simplifying administrative procedures for hundreds of thousands of entrepreneurs each year.
The number of mission-driven companies has increased more than 10 times in 6 years — proof that the status meets a real demand from companies wishing to formalize their commitment.
The purpose is now adopted by many large French companies, which include it in their statutes as a strategic compass.
CSR has shifted from being a voluntary approach to a structural issue, driven by the PACTE law and further strengthened by the CSRD, the CS3D, and the duty of vigilance.
PACTE Law and Positive Company® Label: the same conviction
It is in this dynamic that the Positive Company® Label is positioned. Convinced that a sustainable production model is possible, it supports each company wishing to structure its CSR approach, have it evaluated by an independent third-party organization, and report on it to its stakeholders.
The Positive Company® Label aligns with the ambitions of the PACTE law: to give visibility to the most virtuous companies, and to make CSR a foundation of sustainable performance rather than a regulatory constraint.
Does your company want to structure its CSR approach and have it officially recognized?
The Positive Company® Label supports you from the first diagnosis to the labeling; with a framework aligned with the requirements of the PACTE law, the CSRD, and the VSME.
Discover the Positive Company® Label Learn moreFAQ - PACTE Law
The PACTE law (Action Plan for Growth and Transformation of Enterprises) was enacted on May 22, 2019. It aims to improve the performance of French micro and small businesses by simplifying their creation and management, facilitating their growth, and encouraging them to consider social and environmental issues in their activities.
The purpose is an optional concept that can be included in the statutes, expressing the long-term ambition and impact sought by the company beyond profit. The mission-driven company goes further: it is a legal status that includes specific social and environmental objectives in the statutes, with mandatory oversight by a mission committee and an independent third-party organization. A mission-driven company necessarily includes a purpose.
In 2026, France has more than 2,400 mission-driven companies, compared to about 200 in 2020, representing a more than 10-fold increase in 6 years. This status, created by the PACTE law, is experiencing growing adoption among companies of all sizes wishing to formalize their social and environmental commitments.
The PACTE law modified the Civil Code so that all French companies "take into account social and environmental issues" in their activities — a general obligation but not very binding. The statutes of mission-driven companies and the purpose remain voluntary. In contrast, other subsequent regulations (CSRD, CS3D, duty of vigilance) have strengthened CSR obligations in a more binding way, particularly for large companies.
Sources
- Légifrance. Law No. 2019-486 of May 22, 2019, on the growth and transformation of companies (PACTE).
- Economie.gouv.fr. PACTE law — simplification measures.
- Guichet-entreprises.fr. Single window for business formalities. Operational since January 2023.
- Ministry of Economy. Mission-driven companies. economie.gouv.fr