THE DIFFERENT FRENCH TAXES French taxes may be subdivided into four general categories: 1.direct taxes, which are imposed on the income of the taxpayer, 2.turnover and consumption taxes, such as the value added tax, which are imposed upon certain business transactions, 3.registration taxes, which are payable in connection with certain […]
There are five principal sources of tax law in France: 1.tax treaties, 2.European Union Law 3.laws and decrees, 4.case law, and 5.administrative interpretations. TAX TREATIES France has entered into approximately ninety bilateral treaties to limit double taxation; the renegotiation of such treaties and the negotiation of new treaties are continuing. 3 Subject […]
Incorporation of a private company limited by shares – simplified (Société par Actions Simplifiée) The société par actions simplifiée (hereafter “SAS”) is a limited liability company which is principally used by large industrial enterprises as the corporate vehicle for holding companies and joint ventures both on a national and international […]
INCORPORATION OF A CIVIL COMPANY A civil company may be formed by two or more individuals or, absent specific contrary statutory provision, legal entities. The incorporation process of a civil company is substantially similar to that of a société anonyme (hereinafter referred to as an “SA”) or a société à […]
Why do we need to make a comparison between an SA and an SARL? Because the two most common business vehicles in France are the société anonyme (“SA”) and the société à responsabilité limitée (“SARL”) and the foreign investor, when deciding how to structure his investment, often narrows down his […]
The incorporation of an SARL is similar to that of an SA. The following steps usually take approximately two weeks, such figure being increased by approximately one month if capital contributions in kind are to be made: 1. the preparation of the Articles of Incorporation (statuts) (hereinafter referred to as “Articles”), […]
A société anonyme (hereinafter referred to as an “SA”) is a corporation composed of at least seven shareholders created for a commercial purpose. There is a simplifed form of SA (called SAS) that can be incorporated by two or even one single shareholder. It issues shares representing equity participations which are normally […]
Before addressing the substantive aspects of corporate law and business organizations in France, the foreign investor should become acquainted with the classification of French business entities into sociétés commerciales and sociétés civiles, hereinafter respectively referred to as “commercial companies” and “civil companies.” There are two generic types of companies in […]
There are two generic types of companies in France: commercial companies and civil companies. The distinction between the two types of companies is important to make when considering, inter alia, the liability of the shareholders for the debts of the company. All companies, no matter what their purpose or activities, are […]
Before making or expanding an investment in France, foreign investors should inquire about the myriad of investment incentives available to investors in France, both French and foreign. The governmental policy behind such incentives is threefold: the creation of jobs, the maintenance of jobs through the reorganization or reorientation of industries […]
