Doing Business in France - RSM International
Doing Business in France - RSM International
Doing Business in France - RSM International
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2.2.2.4 General Partnership<br />
(“Société en Nom Collectif, SNC“)<br />
The m<strong>in</strong>imum capital is 1 €.<br />
This structure must be created with at least 2 partners. The partners have jo<strong>in</strong>t and<br />
unlimited liability. There is no obligation to appo<strong>in</strong>t a legal auditor, unless 2 of the 3<br />
follow<strong>in</strong>g thresholds are exceeded:<br />
• Balance sheet > 1.55 Million €,<br />
• Yearly pre-tax turnover > 3.1 Million €,<br />
• Average number of employees > 50.<br />
2.2.2.5 Civil company<br />
(“société civile”)<br />
The m<strong>in</strong>imum capital is 1 €.<br />
The company must have at least two shareholders. This structure must be created<br />
with at least 2 partners. The partners of the company have unlimited liability <strong>in</strong> proportion<br />
of their share ownership.<br />
The activity should not be trad<strong>in</strong>g activity.<br />
Regard<strong>in</strong>g the real estate bus<strong>in</strong>ess, a SCI (Société Civile Immobilière) is generally used to<br />
purchase, sell and rent properties.<br />
Children under eighteen years of age can hold shares <strong>in</strong> the company, provided they<br />
receive separate legal advice about their rights and obligations. It would also be possible,<br />
with<strong>in</strong> the articles of the company, to limit <strong>in</strong> some manner the liability of any m<strong>in</strong>ors <strong>in</strong><br />
the company.<br />
Like any other company the SCI is a separate legal entity from those who own it.<br />
Depend<strong>in</strong>g on how the operation is structured, some tax advantages may be enjoyed<br />
with SCI.<br />
12 | DOING BUSINESS IN FRANCE
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