Company comparison table
| What is the required number of partners required? | What is the minimum volume of the equity? | Who runs the company? | |
| sole proprietorship
(fr: EI) |
– It consists only of the individual entrepreneur – (He can, of course, hire employees). |
– No notion of equity | – It consists only of the individual entrepreneur |
| one-person limited liability undertakings
(fr: EURL) |
– Only 1 | – Equity volume set by the associates
– 20% of the cash contributions have to be given when the company is created, the balance set to be released within 5 years. |
– a manager – he is either the only associate, or a third party |
| LLC
(fr: SARL) |
– Between 2 and 100 | – Equity volume set by the associates
– 20% of the cash contributions have to be given when the company is created, the balance set to be released within 5 years. |
– 1 or more manager(s) – they are either associates, or third parties |
| public limited company
(fr: SA) |
– At least 2 if the company is not listed – At least 7 in the company is listed |
– At least 37 000€
– 50% of the cash contributions have to be given when the company is created, the balance set to be released within 5 years. |
– a board of directors of 3 to 18 members, who must be shareholders. – The chairman is appointed by the board of directors from among its members. – A general manager may also be appointed to represent the company. |
| Simplified joint stock company
(fr: SAS/SASU) |
– At least 1 | – Equity volume set by the shareholders
– 50% of the cash contributions have to be given when the company is created, the balance set to be released within 5 years. |
– 1 president – the associates determine the rules he must follow in the by-laws |
| partnership
(fr: SNC) |
– At least 2 | – Equity volume set by the associates |
– 1 or more manager(s) – they are either associates, or third parties |
| cooperative companies
(fr: Scop) |
– At least 7 – At most 100 for SARL Scop |
– At least 18 500€ for SA Scop
– At least 30€ for SARL/SA Scop |
– a manager elected by the associates for either 4 or 6 years (6 years for SA Scop) |
| Association | – At least 2 | – No notion of equity
– The association can collect contributions from members – Members may also make contributions in kind |
– Its management is chosen freely. – The association is often run by a board of directors, which generally elects an office composed of a president, a treasurer and a secretary. |
| How liable are the associates? | How liable are the leaders? | How are profits taxed? | |
| sole proprietorship
(fr: EI) |
– the main residence is protected – personal property can be protected by a “declaration of non-seizability” – for a EIRL, personal assets and professional assets can be separated |
– Civil and legal liability of the leader |
– Income tax – Possibility of instead choosing the corporate tax for EIRLs |
| one-person limited liability undertakings
(fr: EURL) |
– The liability of the partner is limited to the amount of his contributions, unless he has committed mismanagement or granted personal guarantees. | – Civil and legal liability of the leader |
– Income tax – Possibility of instead choosing the corporate tax |
| LLC
(fr: SARL) |
– The liability of partners is limited to the amount of their contributions, unless they committed mismanagement or granted personal guarantees. | – Civil and legal liability of the leader(s) |
– Corporate tax – Possibility of instead choosing the Income tax for familial SARLs – Under certain conditions, income tax is also possible for SARLs less than 5 years old |
| public limited company
(fr: SA) |
– The liability of partners is limited to the amount of their contributions | – Civil and legal liability of the leader(s) |
– Corporate tax – Under certain conditions, income tax is also possible for SAs less than 5 years old |
| Simplified joint stock company
(fr: SAS/SASU) |
– The liability of partners is limited to the amount of their contributions | – Civil and legal liability of the leader(s) |
– Corporate tax – Under certain conditions, income tax is also possible for SAs less than 5 years old |
| partnership
(fr: SNC) |
– Partners are infinitely liable | – Civil and legal liability of the leader(s) |
– Each associate is taxed based on their benefits under the income tax – A possibility of instead choosing the corporate tax |
| cooperative companies
(fr: Scop) |
– The liability of partners is limited to the amount of their contribution | – Civil and legal liability of the leader(s) |
– Corporate tax – Tax exemption for the portion of profits distributed to employees in under the heading of participation and for the portion set aside intended to be invested |
| Association | – No liability | – Civil and legal liability of the leader(s)
– liability can be toned down if the leader is unpaid |
– Associations that make profits for profit are subject to VAT and must pay corporation tax at the normal rate. – Non-profit associations benefit from a reduced IS rate on their own property income. – In addition, non-profit associations whose commercial revenue does not exceed € 60,000 per year are exempt from commercial taxes: corporation tax, VAT, territorial economic contribution. |
| Is the revenue of the director tax deductible from the company profits? | What is the tax system for the director? | What is the social regime for the director? | |
| sole proprietorship
(fr: EI) |
– No, except If the Corporate tax was chosen in the case of the EIRL | – Income tax in the category that corresponds the activity of the company | – For the director: “self-employed persons” regime |
| one-person limited liability undertakings
(fr: EURL) |
– No, except If the Corporate tax was chosen, or if the manager is not the only associate | – If the corporate tax is chosen for the company: income tax either in the “industrial and commercial profits” category or in the “non-commercial profits” category
– if the income tax is chosen for the company: income tax in the “wages and salaries” category – Since 2017, if the income tax is chosen for the company, it is also possible to choose the “micro-company” regime |
– if the director is the only associate: “self-employed persons” regime – if the director is a third-party: “employee” regime |
| LLC
(fr: SARL) |
– Yes, unless the income tax was chosen | – Salaries and wages, unless the income tax is chosen for the company |
– if the manager owns more than 50% of the shares: “self-employed persons” regime – if the manager 50% of the share or less: “employee” regime |
| public limited company
(fr: SA) |
– Yes, unless the income tax was chosen | – Salaries and wages for the president of the board, unless the income tax is chosen for the company |
– For the director: “employee” regime – the other members of the board aren’t paid for their work as directors, so they don’t belong to any social of these social regimes |
| Simplified joint stock company
(fr: SAS/SASU) |
– Yes, unless the income tax was chosen | – Salaries and wages for the president, unless the income tax is chosen for the company | – For the director: “employee” regime |
| partnership
(fr: SNC) |
– No, except If the Corporate tax was chosen | – income tax in the “industrial and commercial profits” category | – For the director: “self-employed persons” regime |
| cooperative companies
(fr: Scop) |
– Yes | – Salaries and wages | – for the executive managers: “employee” regime (in particular when it comes to unemployment insurance |
| Association | – Yes, under certain conditions | – If the director is paid, Salaries and wages | – For the directors: “employee” regime under certain conditions |
| What is the social regime for the associates? | Who makes the decisions? | Is appointing an auditor required? | |
| sole proprietorship
(fr: EI) |
– There are no associates | – the entrepreneur is alone | – No |
| one-person limited liability undertakings
(fr: EURL) |
– “self-employed persons” regime | – the manager, but his powers can be limited if he is not the only associate | Same as the LLC (SARL) |
| LLC
(fr: SARL) |
– “employee” regime (as long as they have an employment contract) | – for everyday management: the manager
– for decisions for which the manager does not have the authority: the Ordinary General Meeting – for decisions to change the company by-laws: the Extraordinary General Meeting |
– No, unless 2 out of 3 of the following conditions are met:
|
| public limited company
(fr: SA) |
– “employee” regime (as long as they have an employment contract) | – for everyday management: the manager if there is one. Otherwise, the president
– for decisions for which the manager does not have the authority: the Ordinary General Meeting – for decisions to change the company by-laws: the Extraordinary General Meeting |
– Yes |
| Simplified joint stock company
(fr: SAS/SASU) |
– “employee” regime (as long as they have an employment contract) | – The associates are free to determine the company states, as well as how decisions are taken.
– Some decisions, such as the approval of accounts still have to be taken collectively. |
– No, unless 2 out of 3 of the following conditions are met:
|
| partnership
(fr: SNC) |
– “self-employed persons” regime | – Same as the LLC (SARL) | Same as the LLC (SARL) |
| cooperative companies
(fr: Scop) |
– “employee” regime (as long as they have an employment contract) | – Deliberations are voted for in the General Assembly, following the rule: “1 associate = 1 vote” (no matter how much contribution was made) |
– Yes for the SA Scop – Same as the SARL for the SARL Scop – Same as the SAS for the SAS Scop |
| Association | – The members who aren’t directors can have an employment contract | – Freedom of contract | – No, except in a few cases (when subventions obtained by the association exceed a certain level) |
| How to transfer the business? | |
| sole proprietorship
(fr: EI) |
– for artisans and merchants: by transfer of goodwill – for liberal professions: by presenting the customer base – possible to give the elements making up the business to the equity of a business in creation, or to transfer the operation of the activity to a third-party (lease-management) |
| one-person limited liability undertakings
(fr: EURL) |
– by transfer of shares |
| LLC
(fr: SARL) |
– by transfer of shares |
| public limited company
(fr: SA) |
– by transfer of shares, unless otherwise specified in the company by-laws |
| Simplified joint stock company
(fr: SAS/SASU) |
– by transfer of shares |
| partnership
(fr: SNC) |
– by unanimous transfer of shares by the associates |
| cooperative companies
(fr: Scop) |
– by transfer of shares – The shares have to be sold at their nominal value |
| Association | ————————— |
