Types of Enterprises

There are two legal statuses available if you wish to operate commercially.

Trading on an Individual Basis:-

Une Enterprise Individuelle. An individual trader has unlimited liability but is the only person who receives profits from the business.

EURL : L'enterprise unipersonnelle à responsabilité limitée. This allows the individual traders to benefit from limited liability while affording them total control. It does mean the initial capital outlay of FF 50.000 and more legal and accounting obligations than above.

Trading with Partners:-

SNC : Société en nom collectif. This is a partnership in which the partners all have the status of commercial traders. There is no minimum share capital, however all the partners are jointly,severally and wholly liable for all company debts.

SARL : Société à responsabilité limitée. A private limited company must have a minimum capital of FF 50.000. Liability of the shareholders is limited to their investment. Any shares must be sold or passed on with the consent of the others shareholders. This type of company is appropriate for a medium sized company and is the simplest form of limited company.

SA : Sociétés Anonymes.This is a public limited company and involves the same complications and expense as any plc. It is financed by a minimum capital of FF 25.000, at least 25% of which must be paid in when it is incorporated. There must be at least seven shareholders whose liability is limited to their investments. Shares in the company are negotiable and can be made available to private and public investors.