Company creation: choose the legal form of your company

When you want to exercise a activity aloneindividual business So, the taking is a very good option. The formalities of creating and managing the company are simpler than those of a business. For example, you won't need to write bylaws or set up a share capital.

Individual business L', unlike the business, shall not lead to the creation of another legal personality. It is attached to your person, you exercise as self-employed a commercial, artisanal, liberal activity.

Scope of liability

As an individual entrepreneur, your personal wealth and your occupational heritage are separate. This separation protects your personal assets (e.g. your booklets, your secondary residence) from any professional debts.

Taxation of profits

As an individual entrepreneur, you are taxed directly under theincome tax (IR).

Your remuneration depends on your turnover. It is up to you to determine your income, in relation to the amount you have left after the payment of your taxes, your social contributions and your other monthly obligations (local expenses, suppliers...).

There is no rule, you can decide to pay yourself a fixed remuneration or recalculate your remuneration every month. Your taxes are calculated and levied on your turnover.

Social security system

As an individual entrepreneur, you are subject to the scheme for self-employed persons. The amount and calculation of your payroll taxes varies depending on your income. They represent approximately 45% of your income from operations.

You can use this form of business if you want to carry out a commercial, artisanal, liberal activity by being alone.

Number of partners

1 partner only (natural or legal person).

Amount of share capital

There is no minimum social capital.

Share capital is made up of cash contributions (money) and/or contributions in kind (e.g. a computer, a car). It is possible to make industrial inputs (provision of specific know-how or skills) which are not part of the company's capital.

The cash contributions shall be paid as follows:

• At least 20%  input when creating the business.
• The balance within 5 years after the registration of the Eurl

Scope of liability

Your liability is limited to the amount of your contributions, unless you have made mismanagement or have granted personal guarantees.

Taxation of profits

You are, as a sole partner, taxed directly on income tax (DI). However, the EURL may opt for business tax (IS).

Social scheme of the manager

The social security system differs according to the functions:

• Asassociate, you are subject to the self-employed (self-employed) scheme.
• If you are single associate manager, you are subject to the self-employed (self-employed) scheme.
• If you are third-party manager, non-associate, your status is that of assimilated employee.

Taxation of the manager

As a manager you are subject to income tax either in the category of BIC or NBC, or in the case of wages and salaries.

You can use this type of business to carry out a craft, commercial, industrial or liberal activity.

Number of partners

2 minimum and 100 maximum partners (natural or legal persons)

Amount of share capital

There is no minimum social capital imposed.

Share capital is made up of cash contributions (money) and/or contributions in kind (e.g. a computer, a car). It is possible to make industrial inputs (provision of specific know-how or skills) which are not part of the company's capital.

The cash contributions shall be paid as follows:

• At least 20%  input when creating the business.
• The balance within 5 years after the registration of the Eurl

Scope of liability

The liability of members shall be limited to the amount of their contributions, unless they have committed mismanagement or granted personal sureties.

Taxation of profits

Profits are subject to business tax (IS).

However, it is possible to opt for income tax (IR) in the case of the Family SARL.

An option for IR is also possible, under certain conditions, for SARLs created less than 5 years ago.

To opt for IR, the SARL must comply with the following four conditions:

• To carry on primarily an industrial, commercial, craft, agricultural or professional activity, excluding the management of one's own movable or immovable property
• Being held at 50%at least by natural persons and 34% at least by the head of the company and the members of his tax household
• Not to be quoted on a regulated market
• Employ fewer than 50 employees and have an annual turnover or balance sheet total of less than €10 million

Social security scheme for the manager of SARL

The social security scheme of the managing partner depends on the number of shares he holds in the business.

The manager is minority if he holds less than half of the shares in the business. He is egalitarian where he holds half the shares in the company.

The manager (minority or egalitarian) reports to the general social security scheme if he is paid.

The majority manager holds more than half of the shares, i.e 50%+ 1 social share.

The majority managing partner is affiliated with the social security scheme for the self-employed. Social security contributions are calculated on professional income of the year N-1.

Taxation of the manager of SARL

The remuneration of the manager is taxed in the category of salaries and wages. The manager has the choice between a lump-sum allowance of 10%for professional expenses or to deduct from his income his actual and justified professional expenses.

If the manager receives dividends, they are taxable in the category of income from movable capital (RCM) which is automatically subject to the flat rate levy (PFU) which is 30%.

You can use this type of business to carry out a craft, commercial, industrial or liberal activity.

Number of partners

1 single member: natural person or legal person

Amount of share capital

The amount of the share capital is freely determined by the single partner (€1 minimum). The share capital may be constituted by contributions of cash (money) and/or nature (goods: equipment, vehicles, buildings, goodwill, patents...).

Alternatively, industrial inputs (know-how, specific work) or current account of a member, which are not included in the capital.

At least from the moment of creation 50%of the cash contribution must be freed, i.e. paid into an account at the disposal of the business.

The other half must be released within 5 years that follow registration.

Assessment of contributions in kind by a commissioner for contributions is mandatory when 2 conditions the following are combined:

• A contribution in kind has a value greater than €30,000 ,
• And the total value of the contributions represents more than half of the equity capital.

Scope of liability

The contractor's liability is limited to the amount of his contributions, except exceptions (mismanagement for example).

Taxation of profits

Profits are taxed on business tax (IS) or, on option, on income tax (IR) for up to 5 financial years subject to certain conditions (creation for less than 5 years, less than 50 employees, CA less than 10 million euros, etc.). The option at IR results in the result being taxed directly at the single partner level.

Social security of the director

Managers are affiliated to the general social security scheme, whether they are associated or not. If there is no remuneration, there is no affiliation.

Taxation of the director

The President is subject to the salary and wages regime unless the business opts for the IR.

You can use this type of business to carry out a craft, commercial, industrial or liberal activity.

Number of partners

1 minimum partner, no maximum (natural or legal person).

Amount of share capital

Capital is freely set by the shareholders.

The share capital may be constituted by contributions of cash (money) and/or nature (goods: equipment, vehicles, buildings, goodwill, patents...).

Alternatively, industrial inputs (know-how, specific work) or current account of a member, which are not included in the capital.

At least from the moment of creation 50%of the cash contribution must be freed, i.e. paid into an account at the disposal of the business. The other half must be released within 5 years that follow registration.

Scope of liability

The responsibility of the partners shall be limited to the amount of their contributions.

Taxation of profits

Profits are subject tobusiness tax.

An option for income tax (IR) is possible for 5 financial years, subject to certain conditions (creation for less than 5 years, less than 50 employees, CA less than 10 million euros, etc.). The option for IR results in the result being taxed directly at the level of the associates.

Social security scheme for the President of SAS

From a social point of view, the president of SAS is assimilated employee and benefit from the social protection provided for by the general social security scheme.

The social contributions linked to the director and paid by the company are the same as those of an executive employee, except unemployment insurance

Tax regime of the President of SAS

The remuneration which the President receives for his office shall be imposed on theincome tax (IR) in the category of salaries and wages.

A reduction of 10%or a deduction of the amount of the actual expenses (accommodation, meals, travel,...) of the President is made before the application of the tax.

A public limited company (SA) is a legal form adapted to large-scale companies wishing to enter on the stock exchange. It is suitable for any type of activity (commercial, craft, industrial, liberal).

It can be run by a board of directors with a CEO or by a supervisory board with an executive board.

Number of partners (called shareholders)

The minimum number of shareholders is as follows:

• 2 shareholders in unlisted businesses
• 7 shareholders in listed businesses (no maximum).

The law does not set a maximum for the number of shareholders.

Amount of share capital

The amount of contributions must be higher when the business is created €37,000 minimum.

50% cash contributions must be paid when the company is established, with the money to be paid within 5 years.

The share capital of the SA is divided into shares and must be at minimum of €37,000. It may be constituted by contributions of cash (money) and contributions in nature (goods: equipment, vehicles, buildings, goodwill, patents...).

At least from the moment of creation 50% of the cash contribution must be freed, i.e. paid into an account at the disposal of the business. The other half must be released within 5 years that follow registration.

Contributions in kind must be assessed by a commissioner for contributions.

Scope of liability

The liability of members shall be limited to the amount of their contributions.

Taxation of profits

Profits are subject to business tax (IS).

An option for income tax (IR) is possible for 5 financial years, subject to certain conditions (creation for less than 5 years, less than 50 employees, CA less than 10 million euros...). The option for IR results in the result being taxed directly at the level of the associates.

Social security arrangements for the chairman of the board of directors and the director-general

If the SA is organized as a board of directors with a managing director, the chairman and managing director shall be subject to the assimilated employees. Thus, they benefit from the social security and employee pension scheme in respect of their managerial duties, regardless of the number of shares they hold in the business. They are excluded from the unemployment insurance scheme, unless they take out additional voluntary insurance.

Taxation of the Chairman of the Management Board and the Director-General

The remuneration of the Chairman of the Board of Directors and the Director-General shall be subject to the tax system of wages and salaries. Such remuneration shall be deductible from the profits of the business and taxable to the persons concernedincome tax (IR).

You can use this type of business to carry out a craft, commercial, industrial or liberal activity.

Number of partners

minimum 2 members (natural or legal persons)

Amount of share capital

The amount of the share capital is freely determined by the members (€1 minimum). The share capital may be constituted by contributions of cash (money) and contributions in nature (goods: equipment, vehicles, buildings, goodwill, patents, etc.).

The contributions in industry (know-how, competence) are also permitted but are not part of the share capital.

There is no legal requirement for the immediate release of shares in SNC. The articles of association may stipulate that the shares shall be paid up as and when required by the business.

Scope of liability

Each SNC partner is a merchant. He is bound indefinitely social liabilities, and all partners are solidarity between them. In other words, the creditors of SNC may sue each member (or even only one of them) on his personal assets in order to pay all a debt.

Taxation of profits

There is no taxation at the business level.

The profits made by the business are taxed on behalf of each partner (and not on behalf of the business), including when not distributed.

Thus, SNC is subject to income tax (IR):

• In the category of Industrial and Commercial Benefits (BIC) when engaged in a commercial, industrial or craft activity
• In the category of non-commercial profits (NBC) when engaged in a liberal activity
• In the category of property income when it carries out a property management activity.

SNC can opt for business tax.

Social security plan of SNC's associate manager

Because they are traders, all members of a SNC, whether or not they are managersshall be covered by the social security system of Self-employed persons (SFTs). They are therefore attached to the social security scheme for the self-employed (SSI), which is integrated into the general social security scheme.

Taxation of the associated manager

The remuneration paid to the manager shall be taxed at theincome tax (IR), according to the rules specific to the category of profits to which the business' activity falls (BIC, NLC, property income).

However, when the business opted for business tax (IS), the remuneration of the manager shall be taxed at theincome tax (IR) in the category of wages and salaries. In this case, a reduction of 10% or a deduction of the amount of the actual expenses (accommodation, meals, travel,...) of the director is made before the application of the tax.

You can use this social form if you want to be a craftsman, a trader, an industrialist, or a professional.

Number of partners

CBS includes 2 types of partners :

• General partners : "active" partners who manage the business, they have the status of trader.
• Sponsoring Partners : "Passive" shareholders who finance the business and oversee its management are investors. They participate in the internal life of the business through the general meetings and the Supervisory Board. On the other hand, it is forbids interference with external management business. For example, they cannot sign a contract with a supplier or get closer to a banker to obtain a loan.

A CBS must have at least 2 partners, of which 1 general partner and 1 general partner

Amount of share capital

The amount of the share capital is freely determined by the partners (1 € minimum). The share capital may be constituted by contributions of cash (money) and contributions in nature (goods: equipment, vehicles, buildings, goodwill, patents, etc.).

Extent of liability

The financial responsibility of the partners depends on their status:

• General partners : their responsibility is indefinite and joint and several. In other words, creditors can sue each general partner (or even just one of them) on his or her personal assets to pay off a debt in full.
• Sponsoring Partners : their responsibility is limited in the amount of their contribution to the capital, they may not be sued on their personal assets.

Taxation of profits

Profits are taxed either at business tax (IS) or at income tax (IR).

• Business tax (SI) for the limited partners' share

• Income tax (IR) for general partner shares

Members' social security scheme

• The partner general partner, whether or not he is a manager, is covered by the Self-employed persons (SFTs). It is attached to the social security scheme for the self-employed (SSI), which is part of the general social security scheme.
• The partner patron may be assimilated employee whether he/she has effective functions within the CBS. Like any employee, he or she will hold an employment contract and be covered by the general social security scheme.

CBS Tax System

As regards the tax regime of the CBS, it varies according to the partner's quality.

Each general partner is personally liable to theincome tax (IR) for the share of the social benefits corresponding to his rights in the business.

General partners of CBS who have opted for business Tax (SI) benefit from the lump sum deduction of 10% for business expenses.

The share of profits accruing to the limited partners shall be subject tobusiness tax (IS), and, where distributed, dividends shall, in addition, be submitted on behalf of each sponsor to theincome tax (IR).

You can use this social form if you want to be a craftsman, a trader, an industrialist, or a professional.

Number of partners

The minimum number of partners is 4:1 general partner and 3 sponsors.

Amount of share capital

The minimum share capital is €37,000 or €225,000 in the case of an offer of securities to the public.

When the FCC was created, 50%at least cash contributions (money) must be paid on the day the company is incorporated. The remainder will be paid within 5 years.

Scope of liability

• The general partners are jointly and severally liable indefinitely for the debts of the business.
• Sponsors are liable to the extent of their contributions.

Taxation of profits

The profits of the business are subject to business tax (IS). However, an option for income tax (IR) is possible for 5 fiscal years, subject to certain conditions (creation for less than 5 years, less than 50 employees, CA less than €10 million ..). The income tax (IR) option results in income tax being taxed directly at the level of the partners.

Social security scheme for the head of SCA

The general partner is subject to the Self-employed persons (SFTs), as does the majority manager of SARL.

The unsponsored manager is assimilated employee and benefit from the social protection provided for by the general social security scheme.

The unassociated and unpaid manager is not covered by any compulsory social security scheme.

Taxation of the director

The remuneration which the manager receives in respect of his office shall be imposed on theincome tax (IR) in the category of salaries and wages.

A reduction of 10%  or a deduction of the amount of the actual expenses (accommodation, meals, travel,...) of the director is made before the application of the tax.