How you can Setup an EURL or a SARL
Posted by mildas moser on March 11th, 2020
Generating a tiny to medium operating entity: understand the diverse company structures accessible...
With an EURL, the business is wholly owned by a single person and managed as a restricted liability single shareholder corporation. The gérant or managing director/company secretary - has sole legal responsibility for operating of the company. It is not important that this person be the business owner. It may be someone operating on a non-salaried basis as gérant non rémunéréé. Get additional data about créer une eurl
Within the case of a SARL, the business should have a minimum of two and maximum of one hundred partners.
In each the EURL and SARL the company may be established with any amount of capital from €1. The owner or owners' liability is restricted to the level of their capital investment.
APCE have more data on EURL (in French)
APCE have more facts on SARL (in French)
First identify if the activities of the intended company are regulated and in that case, verify the qualifications and needs for a licence and liability insurance.
For a full list of regulated professions as well as the process essential to register: Take a look at APCE and select the profession from the alphabet tabs (in French)
At this point stop by the acceptable local CFE office and request the application forms and guidelines on necessary documents.
Create and adopt the statuts
The decision 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) really should be named.
Four dated and signed copies of the statutes must be lodged using the Impôts des Entreprises (SIE) inside one month of the date of signatures. This can be carried out through the CFE.
APCE have a sample document supplying statutes for an EURL (in French)
APCE also have a sample document giving statutes to get a SARL (in French)
Establish a business address (domicile). This can be:
the business manager's home address if they may be a home owner
a leased residential address (if agreed by the landlord)
a rented "address" from a business which delivers this service (société de domiciliation or a pépinière d'entreprise)
A certificate of domicile might be needed.
Publish a notice of company formation in an acceptable publication (legal gazette).
APCE have an instance in the text (in French)
Submitting the application for the CFE
The CFE can supply the complete list of documents necessary, acceptable to the activities in the company being formed. Even so it can include the following:
Two copies in the statutes
A copy from the gazette or the letter submitting information for the gazette
Certificate of domicile of your company
Named manager's proof of identity
When submitted, the business is officially open. The CFE concerns 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 exceptional INSEE number may very well be issued.
Preparations for trading may perhaps start with applications for installation of electricity, telephone and opening a company bank account. Also registration with the pensions organisation, company insurance and employee social security.
Note that the complicated nature with the statutes plus the legal and fiscal implications means that the assistance and guidance of an accountant or lawyer is highly suggested. You will find various organisations which specialise in establishing EURLs and SARLs in France.
Tax and accounting
That is complex and the advice of a professional corporate accountant or tax lawyer is advised each just before the setup process and through the operating with the company.
The company have to submit books annually.
The income of a SARL will be assessed for income tax by way of the system of corporate taxation. There's also the facility to get a "family business" (SARL de famille), exactly where owners can elect to become taxed via private income tax.