1. What is a SARL in France?
A French SARL is a Societe a Responsabilite Limitee, which is the French translation of a limited liability company. This structure is recommended for small and medium sized companies incorporated in France. Company formation in France as far as a SARL is regarded falls under simple regulations and flexible requirements.
2. What is the minimum share capital for a SARL in France?
No minimum share capital is required for setting up a SARL in France. Shareholders can provide 1 EUR when incorporating a French limited liability company. Contributions can be made in cash or in kind and these have to be evaluated by an expert in order to issue a report of validation. 20% of the initial capital must be paid before company registration in France.
3. How many shareholders are necessary for a SARL in France?
No more than 100 shareholders can incorporate a limited liability company in France. These can be individuals with no special requirements for their citizenship or legal entities. Founders are liable to the extent of their contribution. The shares can be transferred between shareholders freely.
4. What is the management structure for a SARL in France?
One or more managers are required for a limited liability company in France. Their residence or nationality are not submitted to special requirements. The name of the manager is mentioned in the articles of association and it can be assigned for unlimited period. There is also the possibility that shareholders with more than half of the shares can appoint a new manager from the shareholders, employees or an outsider of the company. The responsibility of the manager stands in his ability for making all major decisions on behalf of the French SARL.
5. How can a SARL in France be verified?
A statutory auditor is mandatory in a French SARL only if the total assets exceed 1,550,000 EUR, sales are over 3.1 million EUR or if the company has more than 50 employees. When two of the above mentioned conditions are met, an auditor must issue reports on all transactions made by the French SARL.
6. Are there other requirements for a SARL in France?
Transfer of shares between shareholders is free, but it can only be performed if all the founders of a SARL in France are informed. If the two parts are members of the family, the transfer is more flexible.
For more detailes about opening a limited liability company in France, you may contact our company incorporation agents.