Corporate articles

What you need to know about an acquisition audit in France?

If you are planning to take over a business while limiting the risks, it is essential to carry out an acquisition audit (also known as due diligence). This enables you to check the information provided by the seller and ensure that the sale price is not overestimated. Depending on the project, the size of the target company and its sector of activity, different types of audit may be required, such as accounting and financial, tax, corporate, legal, contractual, organisational, etc. audits. What are the issues involved in an acquisition audit? The acquisition audit is a crucial stage in the process

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Corporate articles

Shareholders’ agreement in a French company

What are the advantages of concluding a shareholders’ agreement? A shareholders’ agreement, also known as a “pacte d’actionnaires”, is an agreement between two or more partners in a company (SAS, SA, SARL or other form of company) that governs their relationship outside the Articles of Association. The objectives and content of the agreement may vary depending on the specific needs of the partners and the nature of their cooperation. The explanations given here are intended to provide a general overview of the advantages of such an agreement. Partners’ agreements can be beneficial for the following reasons: What does a shareholders’

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Corporate articles

What is the so called “management package” and how it works?

A management package, also known as a « ManPack », is an essential tool for motivating, sharing value creation and retaining key managers in mid-sized companies (MSEs) and small and medium-sized enterprises (SMEs). This tool aims to involve key managers and employees in the company’s growth by aligning the interests of shareholders, managers and key employees. It is widely used by investment funds to redistribute part of the value created (i.e. a portion of future profits). The management package offers beneficiaries the opportunity to share in future earnings and, more importantly, to have access to the company’s capital. However, the valuation and

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Corporate articles

How to close down a business/company ?

Closing a sole proprietorship? There are two main stages involved in winding up a sole trader’s business: a declaration of cessation of activity, followed by a tax declaration. Declaring that your sole proprietorship has ceased trading First, to wind up your business, you need to complete the cessation of activity form and relevant documents and provide the Trade and commercial register with it.  This procedure must be completed no later than 30 days after the effective date of cessation of your activity. Declaring the closure of your sole proprietorship for tax purposes The second step is to declare the closure

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Corporate articles

How to proceed to a fund-raising in France ?

What’s the interest of fund raising? Fundraising is a process whereby a company increases its capital by receiving financial contributions from investors. In return, these investors receive shares of the company, depending on the type of company involved. The main aim of this operation is to get new money for the structure and acquire new capital partners to stimulate the company’s growth. What types of company can benefit from a fund raising? For a start-up, the main challenge is to define its needs precisely and align them with its growth potential. It is crucial to raise sufficient funds to enable

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Corporate articles

Which structure to start a business in France?

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

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Corporate articles

How to set up a company in France when you are a non resident

Who is eligible to set up a business in France? Before starting on your entrepreneurship project, it is important to make sure you are eligible to operate in France. Some activities are reserved for French citizens, EU or EEA nationals, or nationals of countries that have a reciprocal agreement with France. In addition, certain professions require a specific diploma, professional experience or administrative authorisation. Once you have checked that your activity complies with French law, you can start following the necessary administrative procedures. What are the steps involved in setting up your business in France? The procedures differ depending on

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