France's two dominant limited-liability structures are the SAS (Société par Actions Simplifiée) and SARL (Société à Responsabilité Limitée), both requiring only €1 minimum capital in law (though banks expect more in practice). SAS is the dominant startup structure (70%+ of new companies), offering flexible governance, no restriction on shareholder numbers, easy share transfers, and investor appeal; its president is treated as an employee for social security purposes, resulting in lower charges than SARL managers. SARL requires 2-100 partners, follows a more rigid statutory framework with fewer customization options, but has lower setup costs and is well-suited to family-run or traditional small/medium businesses.
Both SAS and SARL require only €1 minimum capital in law; banks typically expect a few thousand euros in practice.
SAS: dominant startup choice (70%+ of new companies), flexible governance, no shareholder-number cap, investor-friendly, president treated as employee (lower social charges).
SARL: 2-100 partners required, more rigid statutory structure, lower setup costs, well-suited to family-run/traditional SMEs.
Choose SAS for flexibility/investor appeal/growth; choose SARL for structure/simplicity/traditional setups.
Common Mistakes
Defaulting to SARL for a startup seeking outside investment — SAS is far more investor-friendly due to its flexible governance and easy share transfers.
Assuming SARL managers get the same social security treatment as an SAS president — SARL manager charges are typically higher.