Chapter 1. Overview & Legal Foundation
1-1. Governing Authorities
Under the Code de commerce art. L.123-1, every commercial company in France must be entered in the Registre du commerce et des sociétés (RCS) held by the greffe du tribunal de commerce of the seat. Since 1 January 2023 (Loi n°2019-486 PACTE; Décret n°2021-300), all formalities are submitted through a single national portal.
| Body | Role | Code/Statute basis |
|---|---|---|
| Guichet Unique (formalites.entreprises.gouv.fr) | Single national portal — receives all creation, modification, and dissolution filings | Code de commerce art. L.123-33; Décret n°2021-300 |
| INPI (Institut National de la Propriété Industrielle) | Operator of the Guichet Unique and keeper of the Registre National des Entreprises (RNE) | Code de commerce art. L.123-36 |
| Greffe du tribunal de commerce | Issues the Kbis extract (proof of registration) and keeps the local RCS | Code de commerce art. L.123-6; R.123-31 |
| URSSAF / SSI | Receives social-security registration (CFE for liberal professions/independent workers) | Code de la sécurité sociale art. L.243-1-2 |
| Service des impôts des entreprises (SIE) | VAT, corporate-income-tax, CFE business tax | Code général des impôts (CGI) art. 206; 1447 |
| Journal d'annonces légales (JAL) | Publishes the legal-creation notice | Loi n°55-4 of 4 January 1955 art. 1 |
1-2. Four Common Legal Forms (MmowW Scribe scope)
| Form | French name | Code de commerce | Liability | Min. partners | Min. capital |
|---|---|---|---|---|---|
| SAS | Société par Actions Simplifiée | L.227-1 to L.227-20-1 | Limited to contribution | 2+ | €1 (free) |
| SASU | SAS Unipersonnelle | L.227-1 al. 2 | Limited to contribution | 1 | €1 (free) |
| SARL | Société À Responsabilité Limitée | L.223-1 to L.223-43 | Limited to contribution | 2 to 100 | €1 (free) |
| EURL | Entreprise Unipersonnelle à Responsabilité Limitée (= SARL with one partner) | L.223-1 al. 2 | Limited to contribution | 1 | €1 (free) |
Out of scope of this bible: SA (Société Anonyme — min. 7 partners; min. capital €37,000 under Code de commerce art. L.224-2), SNC (Société en Nom Collectif), SCI (Société Civile Immobilière — non-commercial), micro-entrepreneur (sole proprietorship without legal personality).
1-3. SAS vs SARL — Decision Matrix
| Criterion | SAS / SASU | SARL / EURL |
|---|---|---|
| Statute basis | Code de commerce L.227-1 et seq. | Code de commerce L.223-1 et seq. |
| Statutory freedom | High — bylaws govern almost all internal rules (L.227-9) | Low — many rules fixed by Code de commerce (L.223-x) |
| Mandatory representative | Président (L.227-6) | Gérant (L.223-18) |
| Social-security regime of director | Assimilated employee — affilié au régime général (URSSAF) | Majority gérant: TNS (Travailleur Non Salarié) — SSI |
| Capital contributions | Cash + in-kind + industry shares (L.227-1 al. 4) | Cash + in-kind + industry shares (L.223-7) |
| Shares transferable to third parties | Free unless bylaws restrict (clauses d'agrément possible — L.227-14) | Requires partner approval (agrément) — L.223-14 |
| Statutory auditor (CAC) | If 2 of 3 thresholds: balance €5M / turnover €10M / 50 employees (Décret 2019-514) | Same thresholds |
| Typical use | Start-ups, fundraising, freelancers (SASU) | Small commercial business, family business (SARL) |
Reference: Code de commerce art. L.227-1 (SAS general rule); art. L.223-1 (SARL general rule).
1-4. France-specific vs EU-common Rules
| Topic | EU-common (applies) | France-specific |
|---|---|---|
| VAT (TVA) registration | Council Directive 2006/112/EC | Code général des impôts art. 286; SIE filing required |
| Cross-border mobility | Directive (EU) 2019/2121 | Transposed into Code de commerce art. L.236-31 et seq. |
| Beneficial owner registration | AML Directive (EU) 2015/849 (5th AMLD) | Code monétaire et financier art. L.561-46; declaration via Guichet Unique within 30 days of incorporation |
| Single shareholder companies | Directive 2009/102/EC | SASU/EURL specifically — Code de commerce L.227-1 al. 2; L.223-1 al. 2 |
| Capital requirements | EU has no minimum for SAS/SARL equivalents | France: €1 minimum for SAS/SARL (art. L.227-1; L.223-2) |
| Annual accounts filing | Directive 2013/34/EU | Filed at greffe within 1 month of approval; 2 months if filed online (Code de commerce art. L.232-21) |
Want to generate your formation documents automatically? Try Scribe — your business compliance OS. https://mmoww.net/scribe/app/
Quick Decision Matrix
Choose the right business structure in 5 seconds.
| Your Goal | Recommended Structure | Key Consideration | Go To |
|---|---|---|---|
| Solo founder, low risk | Sole proprietorship or single-member LLC | Simplest setup, limited liability | Chapter 3 |
| Partnership with co-founders | LLC or Limited Partnership | Operating agreement essential | Chapter 3 |
| Seeking venture capital | Corporation (C-Corp equivalent) | Investor-friendly structure | Chapter 3 |
| Small local business | LLC or local equivalent | Balance of simplicity and protection | Chapter 3 |
| Asset protection priority | LLC with strong veil | Jurisdictional differences matter | Chapter 4 |
5-second answer: Most small businesses should start with an LLC (or local equivalent). Read Chapter 2 for requirements, Chapter 3 for step-by-step setup.