Company Formation in France: SARL & SAS | BleuLex Law

Setting up a company in France: what really matters

In practice, setting up a French company comes down to three decisions and a single administrative step. The choice of legal form matters far more than the amount of capital: a SARL and a SAS can each be incorporated with a token €1, yet they hold the director to very different governance rules and social-security regimes. That is why the SAS now accounts for more than 60% of new company registrations — the freedom to shape its articles suits any venture built to grow, take on shareholders or raise money.

Everything after that is handled online. Since the old M0 form was scrapped, the whole procedure runs through the INPI one-stop shop: filing the articles of association, registering with the Trade and Companies Register (RCS), obtaining the SIREN number and receiving the Kbis extract, now issued free of charge. Count on one to two weeks once the file is complete. A notary only comes into it where real estate is contributed to the company.

French Legal Forms

SARL - Société à Responsabilité Limitée

The SARL is a popular form for French SMEs with a regulated structure. It offers simplicity and limited liability.

• Capital: No legal minimum (€1 possible)
• Shareholders: 1 to 100 (individuals or legal entities)
• Liability: Limited to contribution
• Management: One or more managers (gérant)
• Social status: Manager with >50% is self-employed (TNS), otherwise employee-equivalent

SAS - Société par Actions Simplifiée

The SAS is the most flexible French company form, popular for startups, joint ventures, and subsidiaries of foreign groups.

• Capital: No legal minimum (€1 possible)
• Shareholders: 1 or more (SASU if single shareholder)
• Liability: Limited to contribution
• Governance: President mandatory, rest freely structured
• Shares: Transfer rules freely defined in articles

SA - Société Anonyme

The SA suits larger companies and projects requiring significant fundraising. It allows stock exchange listing.

• Capital: Minimum €37,000 (50% paid up at incorporation)
• Shareholders: 2 or more (7 if listed)
• Governance: Board of directors or dual board (directoire/conseil de surveillance)
• Shares: Freely transferable (unless restricted by articles)

Formation Process

Step	Description	Timeline
1. Preparation	Draft articles, choose registered office, prepare ID documents	1-3 days
2. Capital deposit	Open bank account and deposit capital (certificate issued)	1-2 days
3. Legal notice	Publish notice in legal announcements journal (JAL)	1 day
4. RCS registration	File with INPI business formalities center (guichet unique)	3-5 days
5. K-bis extract	Receive company registration certificate (now issued free of charge)	Immediate

Corporate Taxation

French corporate tax (IS) rate is 25%. SMEs benefit from a reduced rate of 15% on the first €42,500 of profits, subject to conditions (turnover <10M€, 75% held by individuals).

For holding companies, the participation exemption regime (régime mère-fille) allows 95% exemption on dividends received from qualifying subsidiaries (5% minimum participation, 2-year holding).

Foreign founder? Our practical guide Starting a Company in France as a Foreigner covers the specific points: the director's residence status, bank accounts for non-residents, running the company from abroad and cross-border taxation.

Why France?

• EU market access: Gateway to 450 million consumers
• R&D incentives: CIR (research tax credit) up to 30% of R&D expenses
• Talent pool: Highly educated workforce, excellent engineering schools
• Infrastructure: Central European location, extensive transport network
• French Tech: Dynamic startup ecosystem with government support