France Company Formation FAQ: 15 Questions for Founders

Most French company-formation questions cluster around the same fifteen topics. Each answer below is anchored to the specific Code de commerce or Code civil provision so you can verify the position with the official text.

1. Can I really form a French company with €1 capital?

Yes. Code de commerce art. L.227-1 (SAS) and art. L.223-2 (SARL) both fix the minimum at €1. The €1 floor is real but rarely used in practice — banks and counterparties read the published capital as a credibility signal under Code de commerce art. L.123-12. Most freelance SASUs are formed at €100–€1,000, family SARLs at €5,000–€10,000.

2. Do I need a French address for the registered office?

Yes. Under Code de commerce art. L.123-11, the siège social must be a physical address in France. Three options:

• Owner’s home (subject to landlord/lease restrictions);
• Premises owned or leased by the company;
• A société de domiciliation licensed under Code de commerce art. L.123-11-3 (typical cost €30–€80/month).

PO boxes do not satisfy the requirement; an address-only forwarding service is insufficient.

3. How long does incorporation take?

Through the Guichet Unique at https://formalites.entreprises.gouv.fr/ (operational since 1 January 2023, Décret n°2021-300), most dossiers are processed in 5–15 working days. The greffe issues the Kbis under Code de commerce art. R.123-149 once the file is complete; banks unblock capital on presentation of the Kbis.

4. What is the DBE and when must I file it?

The Déclaration des Bénéficiaires Effectifs is mandatory under Code monétaire et financier art. L.561-46. A bénéficiaire effectif is any natural person owning, directly or indirectly, more than 25% of capital or voting rights, or exercising control by other means (R.561-55). Filing must occur within 30 days of incorporation via the same Guichet Unique. Penalty for failure under L.574-5: 6 months imprisonment and €7,500 for natural persons (€37,500 for legal persons), plus refusal of bank services and possible dissolution.

5. Can a non-EU resident be Président of a French SAS?

Yes — there is no nationality requirement for SAS Président under Code de commerce. But three practical hurdles:

• A non-EU resident exercising functions in France typically requires a carte de séjour passeport-talent under CESEDA art. L.421-13;
• French banks may refuse account opening on KYC grounds under Code monétaire et financier art. L.561-5;
• Beneficial-owner declaration is unaffected by nationality.

6. Should I choose SAS or SARL?

The decision matrix in summary:

• SAS if you plan to raise external capital, want maximum statutory freedom (L.227-9), and accept higher social charges on the Président (URSSAF régime général);
• SARL if you are a small commercial business, family-run, want the gérant majoritaire to be TNS (cheaper social charges), and accept the rigid Code-fixed regime under L.223-1 et seq.

Investors will usually demand SAS as a precondition.

7. What is a SASU?

A SASU is an SAS with one shareholder — Code de commerce art. L.227-1 al. 2. All SAS rules apply except those that require a plurality (collective decisions become “décisions de l’associé unique” under L.227-9 al. 4).

8. What is an EURL?

An EURL is a SARL with one partner — Code de commerce art. L.223-1 al. 2. All SARL rules apply with the simplification that décisions de l’associé unique replace assemblées générales.

9. Do I need a commissaire aux apports for in-kind contributions?

A CAC is mandatory unless all of the following are met (Code de commerce art. L.227-1 al. 5 / L.223-9):

• No single in-kind contribution exceeds €30,000 (Décret n°2010-1638);
• Total in-kind contributions stay under half of capital;
• All associés decide unanimously to waive the auditor.

If any condition fails, the auditor is mandatory; fees typically run €600–€2,500.

10. What are the social-security regimes for directors?

The cost gap between the two regimes is roughly 30 percentage points on remuneration. Source: https://www.urssaf.fr

11. What is the JAL legal notice and how much does it cost?

Under Décret n°2012-1547 art. 1, an avis de constitution must be published in a Journal d’Annonces Légales of the registered-office département within 1 month of signing the statuts. The 2026 tariff (Arrêté du 19 novembre 2025) is a forfait per type of legal act:

• SAS: ≈ €193 all-included
• SARL: ≈ €144 all-included

These tariffs are uniform nationally for the same type of act since 2022.

12. What government fees apply at incorporation?

Source: https://www.inpi.fr/realiser-demarches/formalites-dentreprises/tarifs-formalites-dentreprises

13. What is the Kbis?

The Kbis is the official extract from the Registre du Commerce et des Sociétés (RCS) issued by the greffe (Code de commerce art. R.123-149). It is the authoritative proof of legal existence, used by banks to unblock capital, by counterparties for KYC, and by public administrations. Since November 2021 (Décret n°2021-1486), the Kbis is delivered electronically and accepted as digital authentication.

14. Can my Président also be Président of another SAS?

Yes — there is no statutory cumul ban for SAS or SARL directors (unlike SA under art. L.225-21). Two practical limits: each remunerated mandate triggers separate URSSAF/SSI cotisations; and any related-party agreement falls under Code de commerce art. L.227-10 (SAS) or L.223-19 (SARL) — disclosure to associés is required.

15. What ongoing obligations apply after incorporation?

Forgetting any of these triggers progressive penalty escalation: late-filing fees, then administrative dissolution by the procureur in extreme cases.

Bonus — Common Pitfalls Founders Repeat

• Name not properly cleared → trademark suit under C. propriété intellectuelle art. L.713-1. Run both INPI trademark search and RNE search.
• Vague objet social → APE/NAF mismatch. Code civil art. 1833 requires sufficient detail.
• Capital deposited before signed statuts → bank refuses attestation.
• JAL notice in wrong département → greffe rejection.
• DBE filed late → six months / €7,500 fine + bank refusal.

If in doubt, consult an avocat or expert-comptable specifically authorised to advise on French company law. Scrib🐮 prepares your documents — we are not advisors.

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Disclaimer

Legal information, not legal advice. MmowW Scrib🐮 is operated by a licensed Gyoseishoshi (行政書士) office in Japan. We are not avocats, notaires, or experts-comptables.

Sources

1. Code de commerce art. L.227-1 — https://www.legifrance.gouv.fr/codes/article_lc/LEGIARTI000038799575/
2. Code de commerce art. L.223-1 — https://www.legifrance.gouv.fr/codes/section_lc/LEGITEXT000005634379/LEGISCTA000006146044/
3. Guichet Unique — INPI — https://formalites.entreprises.gouv.fr/
4. INPI — fees catalogue — https://www.inpi.fr/realiser-demarches/formalites-dentreprises/tarifs-formalites-dentreprises
5. Service-public — SAS overview — https://entreprendre.service-public.fr/vosdroits/F37366