France is a western European country that is the largest in the European Union and the second largest in Europe. It has been one of the world’s most foremost powers for many centuries and is currently rated as the 5th largest economy in the world. 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 Simplified Joint Stock Company.
The French Simplified Joint Stock Company is simply known as SAS (Société par Actions Simplifiée). It is a vehicle for creating a joint venture between a French company and a foreign partner. It was created in 1994 and has been hugely successful for two main reasons: it is very flexible, and it allows one to avoid social security for self-employed (Sécurité Sociale indépendants). Another main benefit the SAS offers is the possibility to dissociate capital from power.
The SAS has a minimum working capital of one Euro and can have one or more shareholders who can be physical or legal persons. In this type of business entity, there is no need for a board of directors. Furthermore, the SAS allows for shareholders to be either French or foreign persons, including foreign corporations.
The simplified joint stock company status leaves partners free to define their powers and the links between them. For example, specific clauses like a shareholder’s agreement can be written up in the Articles of association (status de la société). These Articles of association are simple to write and to amend and can facilitate adding new partners or removing them. This is often very useful for fast-evolving companies, especially start-ups.
Another major benefit of a French joint stock company is that when it comes to company’s assets, the limitation of responsibility for the shareholders makes it easy for them. With limited responsibility, there is less chance of the shareholders losing too much in the company, as their losses only correspond to their level of investment. The shareholders in the company will not be held liable for any obligations other than their investment in the share capital i.e. the liabilities of shareholders is limited with the company assets/share capital.
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.
So, if you want a business venture that is very profitable and as well flexible, setting up a joint stock company in France will be a perfect choice to make.