Doing Business in France - RSM International

2.2.2 Several partners
If there are several partners, one of the following types of legal structure may be chosen.
2.2.2.1 Limited Liability Company
(“Société à Responsabilité Limitée, SARL”)
This structure is the most used by small and medium-sized businesses.
The minimum capital is 1 €. It may be comprised of contributions in cash and/or in kind.
20 % of the contributions in cash must be paid up when the company is formed, and the
rest within 5 years of the creation of the company.
The capital is owned by 1 or more shareholders (Max.100) that can be individuals or
legal entities.
The shareholders’ liability is limited to the amount of their contributions.
There is no obligation to appoint a statutory auditor, unless 2 of the 3 following thresholds
are exceeded:
• Balance sheet > 1.55 Million €,
• Yearly pre-tax turnover > 3.1 Million €,
• Average number of employees > 50.
2.2.2.2 Corporation
(“Société Anonyme, SA”)
This structure is suitable for large projects and/or public issue.
The minimum capital requirement is 37.000 € (if there is no public issue). 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 approved by a Legal Auditor appointed by the Commercial Court.
This structure needs at least 7 shareholders - individuals or legal entities.
The shareholders’ liability is limited to the amount of their contributions. The company
is run by a board of Directors, the minimum of 3 and the maximum is 18. The directors
may have to be shareholders.
The appointment of a legal auditor is mandatory.
10 | DOING BUSINESS IN FRANCE