Company Act in France The Commercial Code is the main company act in France. Here are stipulated the most important requirements and rules for a company organization and structure. The company law in France also refers to some rules in the civil code and in the Monetary and Financial Code. As far as company registration in France is regarded, the Act of December 19, 2002 mentions the obligation of all companies set up in France to register with the French Registry of Commerce and Companies, also known as the Registre de commerce et des sociétés. The French Company Act describes clearly the types of commercial companies and the difference between these types and civil companies. The main business structures recognized by the French Company Actare the limited liability company or SARL, joint stock corporation or SA, partnership or SNC and simple joint corporations or SAS. Civil companies are also mentioned in the Company Act in France as non-trading business structures known as SC (Societesciviles). All requirements for these type of companies are mentioned in the rules of the Company Law in France. The French Commercial Code mentions the “fonds de commerce” which are involved in sales of businesses and acquisitions. As a matter of fact, “fonds of commerce” give security creditors when it comes to commercial companies in France. Agency and distribution are also mentioned in the French Company Act. Types of French Companies • French Joint Stock Company (SociétéAnonyme - S.A.) A minimum of seven shareholders are required in order to set up a French SA. The founders can either be individuals or legal entities. Initial share capital is 37.000 EUR for company formation in France. The capital is divided into shares and the shareholders have a limited liability to the extent of their share contribution. • French Limited Liability Company (Société A ResponsabilitéLimitée - S.A.R.L.) This type of business in France can only be incorporated by at least two shareholders. No more than 100 individuals or legal entities can form a French SARL. No minimum share capital is required. This structure is usually recommended for small and medium sized companies which are set up in France. • Simplified Stock Corporation (Société par actions simplifiée - S.A.S.) This is a similar company to joint stock corporation, but it is more flexible and it requires only two partners for company formation in France. A chairman or president must be appointed by the shareholders. • French Sole Proprietorship (EntrepriseIndividuelle) When only one founder decides to set up a company in France, the best choice is a sole proprietorship. The founder is fully liable for all debts and obligations. No initial capital is required for this type of company formation in France. • Commercial Partnership (Société en nom collectif - SNC) At least two partners are necessary for company formation as far as a partnership is regarded. Partners are responsible for obligations and debts of the partnership to the extent of their personal assets. No minimum capital is required for setting up a commercial partnership in France. Commercial activities of the partners must be performed under the same business name.
Posted on: Sun, 21 Sep 2014 01:24:09 +0000
Trending Topics
Recently Viewed Topics
© 2015