Plurality of Managers in a French SARL: A Complete Legal Guide
In a French SARL (Société à responsabilité limitée), the role of the gérant (manager) is critical. Traditionally, most SARLs operate with a single manager. However, French company law also permits a plurality of managers, often referred to as cogérance. This system can bring flexibility, complementary skills, and continuity in management—but it also creates legal and […]
Appointment of Managers in a French SARL: Rules, Procedures, and Legal Requirements
Choosing and appointing a gérant (manager) is a fundamental step in the life of any SARL (Société à responsabilité limitée) in France. Whether you are creating a new company or replacing an existing manager, French law sets out clear rules on how this appointment is made, which majority is required, and what formalities must be […]
Who Can Be Appointed Manager of an SARL in France?
A complete, practical guide that stays on topic—and on the law. Choosing a gérant (manager) for a French SARL (Société à responsabilité limitée—France’s limited liability company) is a pivotal decision. French law sets clear boundaries around who can serve, what capacity they must have, and which incompatibilities or disqualifications apply. It also recognizes nuanced situations—minors, […]
SARL with Variable Capital in France: A Flexible Way to Start a Business
When incorporating a company in France, one of the most important questions is: how much share capital should you set? For entrepreneurs looking for flexibility, the SARL with variable capital (société à responsabilité limitée à capital variable) offers an attractive solution. This legal structure allows the company’s share capital to fluctuate between a minimum floor […]
A French SARL with 1€ Share Capital: Good or Bad Idea?
The creation of a company in France has long been associated with the idea that entrepreneurs must invest a significant amount of capital in order to provide a guarantee of seriousness and stability. Historically, limited liability companies such as the SARL (société à responsabilité limitée) and its single-member version, the EURL (entreprise unipersonnelle à responsabilité […]
Taxation of Contribution Capital Gains in French Law
The contribution of assets to a French company—whether at incorporation or during the life of the entity—may crystallize a capital gain in the hands of the contributor. The fiscal treatment of that gain depends fundamentally on two variables: the status of the contributor (individual or company; income tax or corporate tax) and the nature and […]
Registration Duties on French Company Contributions
Introduction When creating a company in France, entrepreneurs must navigate a range of formalities. Alongside the drafting of articles of association (statuts), registration with the Trade and Companies Register (RCS), and legal publicity requirements, there is also the question of registration duties (droits d’enregistrement). These duties are a form of tax collected upon certain legal […]
Contributions in Industry in French SARLs
Introduction French company law recognizes three categories of shareholder contributions in the formation and operation of companies: cash contributions (apports en numéraire), contributions in kind (apports en nature), and contributions in industry (apports en industrie). While the first two categories directly form part of the company’s share capital, the third occupies a special position. In […]
Contributions in Kind in French Company Law: Evaluation, Risks, and Formalities
When incorporating a company in France, contributions made by shareholders can take different forms: cash, industry, or assets (known as apports en nature or contributions in kind). Unlike monetary contributions, contributions in kind involve transferring tangible or intangible assets—real estate, equipment, intellectual property rights, or even leasehold rights—to the company’s capital. Because such assets are […]
Cash Contributions in French Company Law: Rules on Release, Deposit, and Withdrawal of Funds
Introduction In French company law, the concept of apports en numéraire—cash contributions—is one of the fundamental building blocks of corporate capital. Whether forming a SARL (société à responsabilité limitée), a SAS or a SA (société anonyme), or another corporate entity, shareholders must commit financial resources to give substance to the company’s legal personality. While contributions […]
