Any potential investor faces a fundamental decision before starting a business in France. The choice is about the form of the legal entity that will best suit their business requirements. Here is the list of basic types of entities in France, called locally statut:
- SARL (Société à Responsabilité Limitée)
- EURL (Entreprise Unipersonelle à Responsabilité Limitée)
- SA (Société Anonyme)
- SAS (Société par Actions Simplifiées)
- SASU (Société par Actions Simplifiées Unipersonnelle)
- SCP (Société Civile Professionelle)
- SEL (Société d’Exercice Libérale)
- SC (Société Civile)
- SNC (Société en Nom Collectif)
The most popular choices of the above are SARL, SA and SAS.
A SARL (Limited Liability Company) is easy to operate as its functioning is controlled by the French Commercial Code. Nevertheless, this vector is mostly unsuitable for business with an external growth strategy due to its harsh legal framework.
A SA (Limited Company) is a more appropriate option for larger businesses. This form helps facilitate fundraising via the entrance of new investors in the share capital. The most significant advantage of choosing an SA consists in limiting all risks to the extent of the investment. Also, any ordinary salaried employee may perform the function of an executive.
The SAS (Simplified Joint Stock Company) is genuinely the most flexible option which allows shareholders to adjust the company to their requirements. This form is suitable for both holding businesses and start-up companies with substantial potential.
Nota bene! Despite the apparent flexibility of SAS direction, there is one important thing to remember for anybody interested in a setting up a company in France. SAS requires a 40-50 page text of fundamental laws under its statute. A SARL reduces this volume up to maximum 2-3 pages.
The best way to set-up a company in France is to do it with Adm In ME. We will help you choose which solution works best for your business model and will guide through each step of the registration process. Contact our local French office at email@example.com to get more information.