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If you have several assiociates, you
mainly have the choice between : |
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A "Société à Responsabilité Limitée" (SARL) : Limited Company |
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The best adapted to small and medium-sized businesses. |
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Minimum of 2 partners - 50 maximum (natural person or legal entity). |
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Same rules as for the EURL,
except for adaptations made necessary by the presence of several
associates. |
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A "Société Anonyme" (SA)
: Joint-stock Company |
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Suitable for large projects.
Minimum 7 shareholders - no maximum
number (natural person or legal entity). |
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Minimum capital : 37 000 euro, at least half of the capital must be paid
when forming the company, the rest within 5 years. The capital may be comprised
of contributions in cash or in kind. Contributions in kind must necessarily be
contributions assessor appointed by the Commercial Court. |
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The company is run by a Board of Managers including from 3 to 18 members (who
must be shareholders). The Chairman of the Board of Managers is appointed by the
Board from among its members. A General Manager may be appointed (optional). |
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The shareholders are responsible for debts up to the amount of their
contributions. The responsibility of the board member(s) is, on the other hand,
much more consequential. For example, it may be extended to include their
personal property if they have managed the company badly. |
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Mandatory appointment of a statutory auditor. |
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A "Société par
Actions Simplifiée" (SAS) : Company Limited by shares |
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Suitable for large-scale projects. 1 or more partners (natural or legal
persons) |
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Minimum capital : 37 000
euros at least half this capital must be paid up at the moment of
setting up the company, and the rest within 5 years. The capital may
be subscribed in cash contributions and/or contributions in kind. |
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It is prohibited to go
public. |
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The partners are free to
determine the organisational rules of the company according to the
company's articles. Their only obligation is to name a president. |
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The way in which collective
decisions are adopted is also determined freely by the partners
according to the company's articles. That said, it is obligatory to
take certain decisions collectively (approval of the accounts, changes
to the share capital, etc.). |
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The shareholders are only liable for debts up to the amount of their
investment. The liability of the director(s) is, however, much heavier. For example, it may extend to their personal effects if they have managed the
company incompetently. |
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The nomination of an auditor is compulsory. |