4 – Different business entities in france : The public limited company (SA)
The SA is composed of at least two shareholders (and 7 if it is listed on the stock exchange) with a minimum share capital of 37 000 €. It is headed by a President and a Chief Executive Officer (who may be one and the same person) and by a Board of Directors composed of at least three people.
It is subject to the obligation to appoint an auditor.
The public limited company, because of the cumbersome nature of its operating rules, should be reserved for projects of a certain size. It is also used when shareholders who are not involved in the activity want to exercise a power of control within the board of directors.
Shareholders’ liability is limited to the amount of their contributions.
5 – Different business entities in france: The simplified joint stock company (SAS)
This relatively new form of company has had some success. As a result, many SAs have been transformed into SAS. However, as a general rule, SAS is not suitable for a business creation by a natural person. Indeed, the rules governing it are similar to those of the SA. However, some measures make it simpler. Thus, no minimum amount for share capital is required. In addition, the appointment of an auditor is reserved for SAS of a certain size or with capital ties to other companies
The SAS can be constituted with only 1 partner.
Compared to SA, it offers the advantage of flexibility: the law allows shareholders the possibility of freely organising its operation in the articles of association. This flexibility requires the informed advice of a qualified professional because it can lead to the development of rules that would be difficult to apply later on.
6 – The simplified single-person joint-stock company (SASU)
This is a special category of SAS with only one partner. Only a few operating rules differ from those applicable to SAS, simplifying legal formalism in particular.
Like SAS, SASU is rarely adapted to a start-up company.
7 – General partnership (SNC)
This form of company is rarely used because it has the disadvantage of not protecting its shareholders’ assets: they are in fact indefinitely and jointly and severally liable for the company’s debts on their personal property.
It is constituted without minimum capital, by at least two partners, all of whom are merchants. As such, a minor cannot be associated with it.
It is managed by one or more managers.
The SNC’s results are taxed at the level of its shareholders for income tax purposes unless the company opts for corporation tax.
8 – Professional civil society (SCP)
This form of company allows several persons exercising the same liberal profession to exercise it in common. They are then indefinitely liable for social debts.
No minimum capital is required.
CPC’s profits are taxed on income tax at the level of each partner.
Is the use of the associative form appropriate to develop a company?
You have to be very careful. Because in most cases, the association is not the most appropriate structure. And it can even present certain risks.
