There are different types of business entities if you want to engage in company formation in France and one option is to open a joint stock company. It can be comprised of natural persons or corporations and stocks are issued and sold to shareholders. The amount of shares that each shareholder has will determine its amount of ownership or participation in the corporation. The main law that regulates joint stock companies in France is the Company Act. The code provides that joint stock companies must have their own business name, a separate legal identity, and the duration for their existence.
If you open a French joint stock company, a certain amount of capital is required. If you set up a company in France as a joint stock company, the capital requirement for those whose shares are publicly sold is 225,000 euros. Otherwise, the capital requirement would only be 37,000 euros. 50 percent of the required capital must be paid within five years from the time of registration. Failure to do so will result in the dissolution of the company.
The process of company formation in France includes the participation of shareholders which is determined by the amount of shares that they purchased in the company. This is represented by the subscription certificate. The shares subscribed by the shareholders must be paid at least fifty percent of the face value and the balance be paid in one or more payments. Rights, obligations, and liabilities of shareholders are provided for in the Company Act and the corporate by-laws.
The board of directors in a joint stock company in France is the main body that is in charge of the management of the company. All business activities and decisions are made by them. Company incorporation in France requires that there will be at least three members in the board of directors, but not more than eighteen. The members are voted upon by and among the shareholders of the company during a regular or special meeting called for that purpose.
Although joint stock companies in France are composed of shareholders and directors, the corporation has a separate legal entity. This means that all transactions must be entered on behalf of the company. If you set up a company in France, its legal personality commences upon registration with the Commercial Registry.
For more information on how to open a joint stock company in France, please do not hesitate to contact us. We will give you all the information you need.