What are the requirements for Business Corporation(SA)company in France?

[richardm1964]

France has been slower than many of its EU counterparts to embrace a truly liberal business pattern. But the minimum share capital needed for SA company in France is €37,000, of which at least half must be paid up. The company must have at least seven shareholders. What are other requirements for Business Corporation(SA)company in France?

[clemens]

Thank you richardm1964 Does the share capital need to be paid up, I mean EUR 37.000 is a lot of money, put this on risk needs very deep pockets?

Also isn't there are work around of the many shareholders for a France company? 7 people, you must know very well to invite the to join your company and have some power....

I think there is a good reason for why business people from France should look in the direction of a offshore company, much cheaper and easier.... further it provides a way better protection of your assets.

[rotaro]

Would have been nice to get an answer to this question, any other who can supply with something?

[power]

Maaaaaan it is difficult to find the answer to this on google, however here is what I found, the required share capital for a SARL is EUR 15.000

The limited liability company is formed between two or more people who bear any losses only to the extent of their contribution. Only a company engaged in sales activities can take the form of a limited liability company.

The company is referred to by its corporate name which may incorporate the name of one or several shareholders and which must be preceded or followed immediately by The words "société à responsabilité limitée" or the initials "S.A.R.L." along with the particulars of the share capital.

The limited liability company is managed by one or several representatives, who may be shareholders or not, paid or not, to the exclusion of any legal person.

The shareholders and manager, even if he is not a shareholder, do not have the capacity of trader.

The share capital is 15,000 Euros minimum. It can be made up of contributions in kind, which must be released in full when the company is formed, or cash contributions released when the company is formed up to an amount at least equal to the minimum capital and, for the rest within a maximum time period of three years from the date of registration with the Register of Trade and Industry.

The release of the capital is made by payments to an account opened for this purpose with a credit institution established in the Principality which must be proved when applying for registration on the Register of Trade and Industry.

The assessment of each contribution in kind, mentioned in the articles of association, takes place in consideration of the report by the audit commissioner unanimously appointed by the future shareholders from among public accountants registered as members of the Association of Public and Approved Accountants. The future shareholders can however, unanimously decide to stipulate that an appeal to an audit commissioner will not be compulsory. In this case, or when the assessed value of the contributions in kind is different from that proposed by the auditor, shareholders are jointly and severally liable for a period of five years, with regards third parties, for the value allocated to the aforementioned contributions at the time that the company is formed.

The articles of association for limited liability companies can be established by private agreement or official record. They must include the particulars set out in Article 47 of the Commercial Code.

[OAEC]

Half the share capital needs to be paid up. There is no way to work around the 7 Shareholders Rule.

French people who set up Offshore will have problems with the French Tax Authorities.

[eromawyn]

It's true that a French SA requires 7 shareholders and a lot of capital. But there are other kind of companies in France. Most common is SARL ; 1 shareholder and 1 € (When there is only one shareholder, a SARL is sometimes called an EURL, but otherwise, there is no difference with a SARL).

SA is a bit like a PLC in UK, for bigger companies.