Simplified Joint-Stock Company (SAS)
Société par Actions Simplifiée
Company formation in France
The SAS is best suited for: Tech startups and scale-ups (the dominant French startup structure), Companies planning to raise venture capital, Businesses wanting maximum flexibility in governance and shareholder agreements, International founders establishing a French presence, Companies eligible for the R&D tax credit (CIR). The standard corporate tax rate is 25% on all taxable profits (reduced from 33.33% over 2018–2022). SMEs with turnover under €10 million benefit from a reduced 15% rate on the first €42,500 of profits. The Crédit Impôt Recherche (CIR) provides a 30% tax credit on qualifying R&D expenditure up to €100 million and 5% above that threshold — one of the most generous R&D incentives in the OECD. The Crédit Impôt Innovation (CII) offers a 20% credit on innovation expenditure (up to €400,000) for SMEs. France has a participation exemption: 95% of qualifying dividends received from subsidiaries are exempt (effectively 1.25% tax on dividends). Long-term capital gains on qualifying participations (held 2+ years) are 88% exempt. Withholding tax on dividends is 25% (reduced under treaties), with 0% under the EU Parent-Subsidiary Directive for qualifying EU parents.
- Tech startups and scale-ups (the dominant French startup structure)
- Companies planning to raise venture capital
- Businesses wanting maximum flexibility in governance and shareholder agreements
- International founders establishing a French presence
- Companies eligible for the R&D tax credit (CIR)
Key Facts
Step-by-Step Formation Process
Choose a company name and verify availability
Check name availability with INPI (Institut National de la Propriété Industrielle) to ensure the name is not already registered or trademarked. There is no formal name reservation process — availability is checked at the time of registration.
Draft the statuts (articles of association)
Prepare the statuts, which define the company's purpose, share capital, governance rules, and the powers of the Président (mandatory officer). The SAS offers exceptional flexibility in the statuts — shareholders can define custom governance rules, vesting schedules, drag-along and tag-along rights, and board composition. This flexibility is the primary reason the SAS is chosen by 70%+ of French startups.
Deposit share capital
Deposit the initial share capital (minimum €1, but practically €1,000–€10,000 for credibility) into a blocked bank account or with a notary. The bank issues a certificate of deposit (attestation de dépôt des fonds) required for registration.
Publish a legal notice (annonce légale)
Publish a notice of incorporation in a journal of legal announcements (journal d'annonces légales, JAL) in the département of the registered office. The notice must include the company name, legal form, share capital, registered office address, corporate purpose, duration, and the identity of the Président. Cost is approximately €150–€250.
Register on the Guichet Unique portal
Since 2023, all French company registrations are processed through the Guichet Unique (one-stop portal) managed by INPI. Submit the statuts, deposit certificate, legal notice attestation, identity documents for the Président and shareholders, and the declaration of beneficial owners (déclaration des bénéficiaires effectifs). The portal forwards the application to the Greffe du Tribunal de Commerce for processing.
Receive the extrait Kbis
The Greffe du Tribunal de Commerce reviews the application and, if compliant, issues an extrait Kbis — the company's official registration certificate and proof of legal existence. The Kbis includes the company's SIREN and SIRET numbers (unique business identification). This is the most important business document in France — required for opening bank accounts, signing contracts, and dealing with public authorities.
Complete post-registration formalities
Unblock the share capital account, register for VAT (TVA) with the Service des Impôts des Entreprises (SIE), set up employer social security accounts with URSSAF (if hiring), and open the company's operating bank account.
Required Documents
- Statuts (articles of association) signed by all shareholders
- Certificate of share capital deposit (attestation de dépôt des fonds)
- Legal notice publication attestation
- Identity documents for the Président and all shareholders (passport or national ID)
- Proof of registered office address (lease agreement or domiciliation contract)
- Declaration of beneficial owners (déclaration des bénéficiaires effectifs)
- Declaration of non-conviction (déclaration de non-condamnation) for the Président
- Domiciliation certificate if using a registered agent
Cost Overview
Tax Treatment
The standard corporate tax rate is 25% on all taxable profits (reduced from 33.33% over 2018–2022). SMEs with turnover under €10 million benefit from a reduced 15% rate on the first €42,500 of profits. The Crédit Impôt Recherche (CIR) provides a 30% tax credit on qualifying R&D expenditure up to €100 million and 5% above that threshold — one of the most generous R&D incentives in the OECD. The Crédit Impôt Innovation (CII) offers a 20% credit on innovation expenditure (up to €400,000) for SMEs. France has a participation exemption: 95% of qualifying dividends received from subsidiaries are exempt (effectively 1.25% tax on dividends). Long-term capital gains on qualifying participations (held 2+ years) are 88% exempt. Withholding tax on dividends is 25% (reduced under treaties), with 0% under the EU Parent-Subsidiary Directive for qualifying EU parents.
Pros & Cons
- Maximum governance flexibility — custom shareholder agreements, vesting, drag-along/tag-along built into the statuts
- Chosen by 70%+ of French startups — the standard vehicle for VC-backed companies
- Only one shareholder required (SASU — single-shareholder SAS)
- €1 minimum capital — no real capital barrier to entry
- R&D tax credit (CIR) is one of Europe's most generous: 30% of qualifying R&D spend up to €100 million
- La French Tech ecosystem provides grants, visas, and networking for qualifying startups
- Full online registration since 2023 via Guichet Unique
- No requirement for a French-resident director
- Social charges on the Président's remuneration are high (~45% employer-side)
- French employment law is employee-protective — hiring and firing is complex and costly
- VAT (TVA) compliance is detailed, with multiple rates (20%, 10%, 5.5%, 2.1%)
- Accounting must follow French GAAP (Plan Comptable Général) unless opting for IFRS at group level
- All official documents and filings must be in French
- Annual accounts must be filed with the Greffe (now partially available for opt-out from public disclosure)
Other Structures in France
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Get StartedThis content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.