Alongside tax and social security applicable schemes and options to make regarding the business you are about to launch, choosing the tailored structure for the activity you plan to develop in France is a key point to ensure and secure your businesses interests and liability.
The simpler and most chosen structure is the sole proprietorship (EI), as regard notably to its flexibility. This category includes the micro-enterprise scheme. It is managed exclusively by a natural person, the sole trader, who has full powers to act. Since May 15th, 2022, the sole trader’s liability has been limited to the assets needed to run the business. No share capital is required, and the company is subject to income tax (as an individual).
The entreprise unipersonnelle à responsabilité limitée (EURL) is another legal form that is basically an SARL with a single partner. The partner’s liability is limited to his or her contributions, except in the event of mismanagement. Management of the business is entrusted to one or more managers, who may be the partner(s). The share capital is determined according to the needs of the business. Taxation of profits depends on the status of the sole partner.
The limited liability company (SARL) requires at least two partners. This is the most common type of company but cannot be chosen for healthcare professions. The partners may be natural or legal persons, and their liability is limited to their contribution. The share capital is determined by the size and needs of the company.The manager has to be a physical person.
The public limited company (SA) is a suitable choice for large-scale projects with limited liability. It requires a minimum share capital of €37,000 and can bring together a large number of partners or shareholders.
A société par actions simplifiée (SAS) or société par actions simplifiée unipersonnelle (SASU) offers great flexibility in terms of capital and transfer of shares. It requires at least one shareholder, who may be an individual or a legal entity.
The société en nom collectif (SNC) is less common and requires a minimum of two partners, both of whom must be traders. The partners are jointly and severally liable for the company’s debts.
It is important to get in mind that each of the above-mentioned structures imply different tax and social security contribitions incidences, so every business project has to be analyzed carefully, not only with regard to the legal scheme.
If you’re not sure which legal status to choose for your business, we are, as corporate law professionnals, at your disposal to circumscribe your needs and define the best scheme to opt for, depending on your activity development and goals.
MFL registered lawyers remain at your entire disposal to answer your queries regarding the adapted structure to start your business. MFL will provide you with the best lawyers to handle your project and provide you with accurate advices.