All investors ask themselves the same question before going ahead with their activity in France: what’s the best legal status? Don’t get lost in the various available options in French company law!

Let’s provide some background to clear things up:

• An SARL (limited liability company), under articles L223-1 to L223-43 of the Commercial Code, is reserved for family businesses like a baker and his wife on a street corner . The manager will have an independent work status: they’ll have to sign up to their own pension fund according to their profession (commercial, craftsperson, liberal professions), they’ll be at the frontline of tax control and they’ll receive various emails addressed to them… In our experience, a director domiciled in a country other than France won’t feel the need to be held remotely liable… hence why this solution isn’t appropriate for growing businesses.
• In SASU, the ‘U’ stands for “unipersonelle” (one-man company). This, in our opinion, sends unnecessary information to the market: why insist on the unipersonal character while the modern business revolves around the partnership, and the presence of the team in the capital with Stock options?
• The EURL (Sole Ownership with Limited Liability) is to SARL as SASU is to SAS (Simplified Joint-Stock Company). By displaying the individual nature of your company, you will weaken your image with your prospects or partners.

Here is a video which summarises the key information on how to set up an SAS :

In our opinion, the investor must consider 2 possible options:

1. If your practice is truly individual, you should decide between an individual consultant or an SARL.
2. If your business follows a more corporate approach, your best decision would be to opt for an SAS.

We can help you with setting up your SAS in France. Please note that the opening of a corporate bank account is not included in this service. If you want to know more, go to service n°6.