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Tips on how to Setup an EURL or even a SARL

Building a modest to medium operating entity: have an understanding of the unique company structures obtainable...

 

With an EURL, the business is wholly owned by a single person and managed as a limited liability single shareholder corporation. The gérant or managing director/company secretary - has sole legal duty for running with the company. It's not necessary that this individual be the business owner. It may be a person operating on a non-salaried basis as gérant non rémunéréé. Get extra information and facts about créer une eurl

 

In the case of a SARL, the business should have a minimum of two and maximum of 100 partners.

 

In both the EURL and SARL the company is usually established with any volume of capital from €1. The owner or owners' liability is limited towards the amount of their capital investment.

 

APCE have far more facts on EURL (in French)

 

APCE have a lot more information on SARL (in French)

 

Setup process

 

Initial identify when the activities with the intended company are regulated and if so, verify the qualifications and needs to get a licence and liability insurance.

 

To get a full list of regulated professions along with the process necessary to register: Check out APCE and select the profession in the alphabet tabs (in French)

 

At this point take a look at the suitable local CFE office and request the application forms and directions on needed documents.

 

Create and adopt the statuts

 

The choice of statuts (articles of incorporation) can have legal and tax implications. Guidance can be sought from an accountant or notaire. At this point a managing director (gérant) needs to be named.

 

4 dated and signed copies with the statutes have to be lodged with all the Impôts des Entreprises (SIE) within one month in the date of signatures. This could be carried out by way of the CFE.

 

APCE have a sample document supplying statutes for an EURL (in French)

 

APCE also possess a sample document offering statutes for a SARL (in French)

 

Establish a business address (domicile). This could be:

 

the business manager's home address if they're a home owner

 

a leased residential address (if agreed by the landlord)

 

a rented "address" from a business which offers this service (société de domiciliation or perhaps a pépinière d'entreprise)

 

A certificate of domicile is going to be required.

 

Publish a notice of company formation in an acceptable publication (legal gazette).

 

APCE have an example with the text (in French)

 

Submitting the application to the CFE

The CFE can offer the full list of documents needed, suitable towards the activities from the company becoming formed. Nevertheless it will involve the following:

 

Two copies in the statutes

 

A copy in the gazette or the letter submitting information towards the gazette

 

Certificate of domicile of your company

 

Named manager's proof of identity

 

When submitted, the business is officially open. The CFE issues a receipt (récépissé de dépôt de dossier de création d'entreprise) stating that the business is awaiting registration (en attente d'immatriculation). In some cases a unique INSEE number could possibly be issued.

 

Preparations for trading could commence with applications for installation of electricity, telephone and opening a company bank account. Also registration with all the pensions organisation, company insurance and employee social security.

 

Note that the complicated nature of the statutes and the legal and fiscal implications implies that the assist and suggestions of an accountant or lawyer is very advised. There are actually quite a few organisations which specialise in setting up EURLs and SARLs in France.

 

Tax and accounting

That is complex along with the guidance of a professional corporate accountant or tax lawyer is advised each just before the setup process and during the operating in the company.

 

The company should submit books annually.

 

The profits of a SARL will likely be assessed for income tax by way of the system of corporate taxation. There's also the facility for any "family business" (SARL de famille), where owners can elect to become taxed through individual income tax.

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