Why set up an LLC (Limited Liability Company) in France

LLC in France

France, a western European country is the largest country in the European Union and the second largest in Europe. It has been one of the world’s most foremost powers for many centuries. Paris, its capital, is famed for its fashion houses, classical art museums including the Louvre and monuments like the Eiffel Tower. The country is also renowned for its wines and sophisticated cuisine, among many other luxuries. All these are pointers to the fact that setting up businesses in France can only be a profitable and lucrative move. Among the many types of companies that can be set up in France is the Limited Liability Company (LLC).

A French LLC is simply known as SARL (Société à Responsabilité Limitée). Its structure is recommended for small and medium-sized companies incorporated in France. Having an incorporated business in France, such as SARL is perceived as a more stable business for partners and customers. Among the many benefits of French SARL is that it falls under simple regulations and flexible requirements, hence its popularity.

The French Limited Liability Company(SARL) is one of the cost-friendly types of companies in France considering the low company registration fees and the lack of share capital requirements. It has a minimum of two shareholders and up to 100 and can be registered with a minimal working capital of one Euro.

Regarding set up time, the registration of a SARL company can take up to six weeks. This amount of time, though quite long enables adequate and thorough registration process, free of any issues. Also, the SARL serves as a great tool for business owners planning to further develop their businesses in a few years, by enabling the addition of extra shareholder associés.

Another benefit of SARL is that it allows for a foreigner to own 100% of the shares. This means that foreign investors are given the same treatment as their French counterparts under the law, with equal rights to become sole directors for greater control.

Registering a French Limited Liability Company means that the business has its own legal entity, called personnaité morale, meaning that shareholders will not be liable for the debts generated by the business. The liability of shareholders in a SARL is limited to their contributions towards the share capital, and not their personal assets. This way, no shareholder will incur more loss than the other, with respect to their level of investments in the company and this undoubtedly brings relief to any willing investor.

One other important benefit of setting up a limited liability company in France is due to the fact that the country is a full member of the European Union (EU). This factor allows more opportunities to do business with other member countries and undoubtedly comes with many other attached benefits.

Considering all these advantages and benefits setting up a limited liability company in France has to offer, it can only be a profitable decision to go ahead and set up one in the country.