An SA is designed to help fundraising by encouraging new investors to contribute to the share capital. SA - Societé AnonymeĪn SA is normally used by businesses that want to go public on the stock exchange or have lots of shareholders as there is no maximum amount of shareholders with this type of business structure. An auditor is required if the business controls one or more companies and it is also required if it exceeds two of the three following thresholds: €1,000,000 of total assets, €2,000,000 of turnover or 20 employees. Opening a business bank account for an SAS requires an initial share capital deposit of around 4,000 euros as there is no minimum required anymore. Related article: Business Banking in France - What NOT to Do The President is considered an employee of the company and so pays normal employee social security contributions except for unemployment insurance. An SAS may not have two Presidents, however, a Director General (“directeur général”) may be appointed and granted powers similar to those of the President. The only person authorized to act on behalf of an SAS company is its President. They can be the same person in which case the company will be incorporated as a SASU - Société par Actions Simplifiées Unipersonnelle. In an SAS, a president and one shareholder is required. Previously, French companies had found it difficult to enter into joint-venture relationships with foreign companies because of the rigidity of French corporate law but SAS companies are increasingly finding favour with foreign investors who wish to set up subsidiaries in France. SAS - Societé Par Actions SimplifieéĪn SAS is a Simplified Stock Company which is perfect for creating a joint venture between a French company and a foreign partner. Bank accounts can rarely be opened remotely and most of the time banks require a meeting in person. The deposited amount is "working capital" and can be taken out of the account for use at any time once the account has been opened. (And it certainly wouldn’t cover the fees!) Whatever amount of capital you choose to start with, this figure must be included on all your official documentation, for instance letterheads, invoices and order forms. The minimum share capital was reduced from €7,500 to €1 but no bank would take you seriously if you were trying to open a business with that amount. When opening a business bank account for a SARL company you need to deposit around €4,000. Any profits gained by the SARL will be assessed for corporation tax through company taxation. You can also choose to have some of it paid as dividends instead. The salary is a deductible expense from company profits. If you are the majority shareholder then you are treated as a self-employed person but if you are a minority or equal shareholder, then you are treated as a salaried employee. If the company only has one director or shareholder or if the director holds more than 50% of the shares of the company, the burden of social security payments is incurred from the first day the company is formed. Related article: Start A Business In France in 8 Steps Or a panel of directors can also be created called a “collège de gérants” and the minimum number of directors is one. There is also the option of transforming a SARL company into an SA further along the line if the investor’s business has developed to such an extent that a change is necessary.Ī manager needs to be appointed – called a gérant – who has a legal responsibility for the running of the company. It’s a good choice for small and medium sized businesses because it is relatively easy to incorporate, manage and operate. The SARL company structure is a French limited company - the equivalent of a Limited Liability Company. So here’s an easy-to-read guide that won’t have you scratching your head and reaching for your accountant on speed-dial. In France there are various different structures available, from SARLs to SAs to EURLs - and for the sole traders, you can choose to set up a Micro-Entreprise as an Auto-Entrepreneur.īut picking which one is right for you and your business is crucial. Setting up a business in a different country is a big step, and one of the first hurdles you need to jump is choosing the correct business structure. A Guide to the Main Business Structures in France
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