France Company Forms Guide

French company legal forms and their tax implications. The guide covers: the SAS (Société par Actions Simplifiée) — the most flexible and most common form for startups and intermediate-sized enterprises: (a) minimum 1 shareholder (SASU for the single-shareholder version), (b) the president is the legal representative (personne physique or personne morale), (c) the shareholders' agreement (statuts) can freely determine the governance rules (veto rights, preference rights, board of directors or supervisory board, direct voting or proxy voting), (d) no minimum share capital (€1 is sufficient), (e) the shares are freely transferable (unless the statuts restrict the transfer), (f) the SAS is subject to the corporate tax (IS) by default (15% or 25%), (g) the president is a "dirigeant assimilé salarié" — the president's compensation is subject to social charges (the "cotisations sociales") as an employee (approximately 75–80% of the total compensation cost is paid by the company for the president's social protection); the SARL (Société à Responsabilité Limitée) — the traditional French limited liability company: (a) minimum 2 associates, maximum 100, (b) the gérant (manager) can be an associate or a third party, (c) the transfer of shares to third parties requires the approval of the majority of associates (the "agrément"), (d) the SARL can be subject to IS (corporate tax) by default, or the "option pour l'IR" (personal income tax) for the first 5 years, (e) the gérant may be "associé" (majority gérant — subject to the SSI regime) or "non associé" (minority gérant — subject to the employee regime); the EURL (Entreprise Unipersonnelle à Responsabilité Limitée) — the single-member SARL: the sole associate (the "associé unique") can be the gérant; the tax regime is the same as the SARL; the SASU (Société par Actions Simplifiée Unipersonnelle) — the single-member SAS: the sole shareholder is the president; the tax regime is the same as the SAS; the SNC (Société en Nom Collectif) — the general partnership: all partners are jointly and severally liable for the debts; the SNC is taxed at the partner level (IR — each partner is taxed on their share of the profits); the SNC is rarely used because of the unlimited liability; the SCP (Société Civile Professionnelle) — the professional partnership for regulated professions (lawyers, notaries, doctors, architects); the partners are taxed at the IR level on their share of the profits; the SCI (Société Civile Immobilière) — the real estate holding company: the SCI is used to hold real estate assets; the SCI is transparent for tax purposes — the rental income is taxed at the partner level (IR) at the progressive rate; the SCI can opt for the IS (corporate tax) if the partners prefer the corporate tax rate; the auto-entrepreneur (micro-entreprise) — the simplified regime for sole traders (individual enterprise without a separate legal entity): turnover limits of €188,700 (goods) or €77,700 (services); the social charges are proportional to turnover (12.3% for goods, 21.2% for services, 23.1% for liberal professions); the tax is paid as a percentage of turnover (the "prélèvement libératoire" — 1% for goods, 1.70% for services) or at the progressive rate.

Choosing the right legal form is critical for the tax and social security implications in France. All amounts in Euros (EUR). For related reading, see our Corporate Tax Guide → and Starting a Business Guide →.

SAS vs SARL — Key Differences

SAS — flexibility: The SAS offers maximum flexibility in governance: the shareholders can freely organise the company's management (the "libre organisation du pouvoir"). The president can be a company (not necessarily an individual). The shares can be freely transferred. The SAS is subject to IS by default. The president's compensation is subject to the employee social security regime (the "régime général" — the employer pays approximately 42% of the gross salary in social charges).
SARL — stability: The SARL offers a simpler structure with a single manager (the gérant). The gérant's powers are defined by law (the "code de commerce") and cannot be fully modified by the statuts. The transfer of shares to non-associates requires the approval of the majority. The gérant can be subject to the SSI regime (if majority gérant) or the employee regime (if minority gérant). The SSI regime is less expensive in social charges (approximately 45% of the net income) but offers less social protection.

Company Forms Comparison

SCI: The SCI (Société Civile Immobilière) is the standard vehicle for holding real estate. The SCI is transparent for tax purposes (IR) — the rental income is taxed at the associate level at the progressive IR rate. The SCI can opt for IS (corporate tax at 15%/25%). The choice depends on whether the associate wants to benefit from the progressive rate (IR) or the corporate rate (IS) and whether the profits are reinvested or distributed.
Auto-entrepreneur: The micro-entreprise (auto-entrepreneur) is the simplest form with no accounting obligation (only a revenue log and an expense log). The limit is €188,700 for sales of goods and €77,700 for services. The social charges are proportional to turnover. The auto-entrepreneur cannot deduct expenses (no amortisation, no deduction of costs).

For the social charges for managers (gérant, président), see our Social Charges Guide →. For the registration procedures, see the guichet unique portal at formalites.entreprises.gouv.fr.