- Category: Transformation
Understanding the legal status change
In certain cases, it’s possible that the current legal status of your company hinders the company’s growth in some way, and it would be more advantageous to change the type of company you have. As such, it’s worth explaining how exactly you can change the legal status of your company in France.
What consequences does changing the legal status have?
The legal status of a company actually means quite a bit! For instance, it defines the role of the manager, the way the company is taxed, the way legal representatives or taxed, as well as how shares are handled.
What exactly is the procedure to change the legal status?
You need to do several things:
- Fill in the forms necessary to change the legal status of your company
- Hold an Extraordinary General Meeting (EGM) so that shareholders can vote for the decision to modify the legal status
- Publish a notice in a Legal Announcement Journal
- Modify the by-laws of your company
You then need to send a file to the CFE (Companies Formalities Center) that’s made up of the transcript of this EGM, a copy of the published notice, as well as a certificate of the modification of the by-laws.
A lawyer or chartered accountant must also examine the value of your assets, to make sure there are no problems when changing company types.