- February 28, 2019
- Posted by: Editorial
- Category: News
Tips to changing the legal status of your French company
Changing the legal status of your company is a complicated process. There can be a lot of consequences, so it’s important to make sure that it’s worth your time to change company types. As such, in which situations should you change the legal status of a company in France?
Following the evolution of your company
When an entrepreneur is starting out, there are a lot of things to take into consideration, and the legal status of the company is one of them. However, a company is an evolving structure, and as such, as it grows, the company can end up having completely different needs than before.
In these cases, it might be worth changing the legal status of your company.
Changing the tax regime of your company
Companies don’t necessarily have access to the same options when it comes to taxation. For example, an SARL or an SAS is able to be subject to the Income Tax rather than the Corporate Tax for 5 years, which is something other companies might not be able to do.
As such, make sure that the changing tax regime isn’t something that can inconvenience your company!
Modifying the by-laws of your company
It’s never necessary to change the legal status of your company in order to modify the by-laws. However, if you do change the type of your company, chances are, you want to fundamentally change some aspects of your company. As such, even when you don’t have to, you should probably go over your by-laws and see what you would want to change!