Type of French Companies

1. Type of French
company
By DUVAL Meghanne
www.shamloulaw.com

2. • Whenever an entrepreneur decides to set up his company in France, he is
confronted with several choices of company.
• Each one has its own characteristics that makes it different from another
type of company.
• It is essential for all foreign entrepreneur to be aware of all type of
company avalaible in the country in order to choose the best structure that
suits its objectives for running a successful business.

3. • There are several type of company that can be established under the
French legal system.
• All those companies are regulated by the French Commercial Code.
Companies avalaible for incorporation in France are the following one :
 French Joint stock company (S.A)
 French limited liability company (S.A.R.L)
 Simplified stock corporation (S.A.S)
 French sole proprietorship ( E.I)
 Commercial partnership (S.N.C)
 French limited liability company ( E.U.R.L)

4. 1. French Joint Stock Company
This form of structure is meant for business at a larger scale.
• It must be run by a Broad of Directors.
• Capital and liquidation are divided into shares with a minimum of seven shareholders.
• Liability of the shareholders is limited to the amount of their contribution and shares
can be tranferred.
• The minimum share capital for a French Joint stock company is 37,000 EUR.

5. 2. French Limited Liability Company
This structure is recommended for small or medium size companies.
• It requires at least two shareholders for incorporation in France and shareholders are
not liable beyond their contribution.
• Capital and liquidation are divided into shares.
• French limited liability company must be registered at the Trade Register.
• No minimum share capital is required for this type of structure.

6. 3. French Simplified Stock Corporation
This structure is more flexible than a French Joint Stock Company.
• This structure requires only two shareholders. This company requires a
president that must be appointed by the shareholders.
• Capital and liquidation are divided into shares and liability of the
shareholders is limited to the amount of their contribution.
• French limited liability company must be registered at the Trade Register.
• The minimum share capital for a Simplified Stock Corporation is 37,000
EUR.

7. 4. French Sole proprietorship
This structure is the best choice if only one founder decides to set up a company.
• This form of stucture is founded by only one member.
• The member has full liability for all company’s debts and obligations.
• The company must be registered at the Trade Register.
• No minimum share capital is required for this type of company.

8. 5. French Commercial Partnership
This structure is an agreement of association between two or more partners
who wish to run commercial activities under the same business name.
• At least two shareholders are needed to create a French Commercial
Partnership.
• Both partners are responsible for obligations and debts of the
partnership to the extent of their personnal asset.
• No minimum share capital is required for setting up a commercial
partnership in France.
• Share are not tranferable without the consent of all partners.

9. Branch Office in France
It is possible for all foreign company to carry out all its sales and services activities to
open a French Branch office.
• Under the French legal the branch has not the status of legal entities, which means
that contracts must be entered into between the parent company and its co-
contractors, even if the person signing the contract is the representative of the French
branch office.
• French branch liability is taken by the foreign company.
• Registration is made at the company registry that has jurisdiction over the area in
which the branch office will be located.
• The manager of a branch in France is subordinate to the parent company, he is under
its control and dependency.

10. For more information about the type of company in France, do not hesitate
to contact our experts.
Thank you for your attention