corporation law


Exchange of confidential market information and business

Agreement / Area Acrylic / Fine / Judgement of the Tribunal (June 7) The EU Court ruled, on June 7, the fines imposed in 2006 to Arkema and its subsidiaries and their parent companies successive Elf Aquitaine SA and Total SA, for their participation in a cartel in the acrylic […]


ANNUAL OBLIGATION TO BARGAIN ON WAGES

Where the employer, subject to annual obligation to bargain on wages at the firm level, does not meet this requirement during a calendar year must apply a 10% reduction of certain tax exemptions or contributions he received from the remuneration paid during that year: a general reduction of contributions called […]


FRENCH BRANCH OR FRENCH SUBSIDIARY ?

Whether benefits are achieved through a branch or a subsidiary, they are liable to corporation tax as long as the foreign entity is a corporation (or the French subsidiary has this form). The withholding tax (25% in principle) that affects the distributions to non-residents applies to dividends paid to foreign […]


INCORPORATION OF A CIVIL COMPANY

INCORPORATION OF A CIVIL COMPANY A civil company may be formed by two or more individuals or, absent specific contrary statutory provision, legal entities. The incorporation process of a civil company is substantially similar to that of a société anonyme (hereinafter referred to as an “SA”) or a société à […]


sas-sarl

COMPARISON BETWEEN AN SA AND AN SARL

The two most common business vehicles in France are the société anonyme (“SA”) and the société à responsabilité limitée (“SARL”) and the foreign investor, when deciding how to structure his investment, often narrows down his choice to one or the other of these two vehicles. The purpose of this section […]


INCORPORATION OF AN SARL

The incorporation of an SARL is similar to that of an SA. The following steps usually take approximately two weeks, such figure being increased by approximately one month if capital contributions in kind are to be made: 1.      the preparation of the Articles of Incorporation (statuts) (hereinafter referred to as “Articles”), […]


Incorporation of Private Company limited by shares

A société anonyme (hereinafter referred to as an “SA”) is a corporation composed of at least seven shareholders created for a commercial purpose. There is a simplifed form of SA (called SAS) that can be incorporated by two or even one single shareholder. It issues shares representing equity participations which are normally […]


Classification of French legal companies

Before addressing the substantive aspects of corporate law and business organizations in France, the foreign investor should become acquainted with the classification of French business entities into sociétés commerciales and sociétés civiles, hereinafter respectively referred to as “commercial companies” and “civil companies.” There are two generic types of companies in […]


WHAT YOU MUST KNOW ABOUT FRENCH CORPORATION LAW

There are two generic types of companies in France: commercial companies and civil companies.  The distinction between the two types of companies is important to make when considering, inter alia, the liability of the shareholders for the debts of the company. All companies, no matter what their purpose or activities, are […]