Company formation — founders, directors, investors

Company formation lawyer Paris: choosing the structure, securing the articles of association and launching the business.

A company formation lawyer in Paris helps you choose between a simplified joint-stock company (SAS), a limited liability company (SARL), a single-shareholder SAS (SASU) or a property holding company (SCI), draft the incorporation deed and the articles of association (statuts), then secure the contributions and the filing with the INPI one-stop shop (guichet unique). The legal form, the governance and the adoption of acts signed before registration must be decided together.

Before registration, the company is in the process of formation: commitments made in its name must be formalised in order to be taken over by the company, failing which the founder may be personally liable.

Company formation · Paris

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Sole founder or several, simple project or fundraising in preparation: send your project and your constraints. The firm replies within 24 business hours with an initial assessment.

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Preliminary review of your case. Examination of your documents and a first written analysis by Reda Kohen, within 24 to 48 business hours. Payment is made online after this form is sent.

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In the media

  • Lexbase

Kohen Avocats, Paris 17

Company formation: what really decides the project

Reda Kohen, lawyer at the Paris Bar
Reda KohenLawyer at the Paris Bar

Company law · Paris 17th

What a company formation lawyer in Paris does

  • Paris Bar
  • Company law
  • Firm in Paris 17th

Lawyer at the Paris Bar — company law, from incorporation to litigation.

An orderly formation follows six steps: a reasoned written choice of legal form, drafting of the articles of association (the mandatory contents of Article L. 210-2 and the sensitive clauses), a shareholders' agreement drafted in parallel, contributions with a contributions auditor where required, the constitutive general meeting, filing with the INPI one-stop shop and then publication. Two pitfalls dominate: a 50/50 split without a deadlock clause and a spouse married under community of property without a written waiver.

Send what you have, even if incomplete: the firm will prioritise and complete the file with you. In an emergency, call +33 6 46 60 58 22.

Official profile in the directory of French lawyers (CNB)Firm at 11 rue Margueritte, 75017 Paris

A structure that is chosen, not imposed

SAS for projects open to outside capital, SARL for family or asset-holding projects, SASU or EURL for a sole shareholder: the choice is reasoned in writing, with the tax, social security and equity impacts quantified.

Articles of association that anticipate disputes

Beyond the contents required by Article L. 210-2 of the French Commercial Code (Code de commerce), the value of the articles of association lies in the approval clause, expulsion, limits on the director's powers and anti-deadlock mechanisms.

Secured contributions

Cash, in kind, or work and know-how: without a contributions auditor, the shareholders are jointly and severally liable for five years for the value given to contributions in kind (Article L. 223-9).

The foundations

Form, articles of association, contributions: three linked decisions

Four rules structure the formation.

  1. The choice of form determines control, taxation, social protection and the ability to raise funds: the flexible SAS (Article L. 227-1), the regulated SARL (Article L. 223-1), the SA with minimum share capital of €37,000 (Article L. 224-2).
  2. The articles of association must contain at least the form, duration, name, registered office, corporate purpose and share capital (Article L. 210-2); their real value lies in the approval and expulsion clauses and in the limits on powers.
  3. Contributions are governed by Article 1843-3 of the French Civil Code (Code civil); in a SARL, a contributions auditor is mandatory unless the shareholders unanimously decide otherwise for contributions in kind of less than €30,000 that do not exceed half of the share capital (Article L. 223-9).
  4. The shareholders' agreement governs what the articles of association cannot say — a quantified exit, valuation, fine-grained governance — with real contractual force between the signatories.

Case law frames corporate life from the outset: the systematic allocation of profits to reserves with the sole aim of favouring the majority shareholders constitutes an abuse of majority sanctioned by nullity (Cass. com., 17 June 2008, No. 06-15.045). Articles of association that provide clear distribution rules avoid this ground.

Your documents

What to prepare to incorporate

A complete file at the INPI one-stop shop avoids rejections and delays.

Position A

Founders

  • Identity document and proof of address for each founder
  • Marital status — written waiver by a spouse married under community of property
  • Split of the share capital and the timetable of any fundraising
  • Proof of authorisation for regulated activities

Position B

Company

  • Draft articles of association and shareholders' agreement
  • Certificate of deposit of the share capital
  • Report of the contributions auditor, where applicable
  • Proof of registered office

Frequent mistakes: a token share capital that undermines credibility with banks; a corporate purpose incompatible with a regulated activity, a source of registration rejection.

The firm also secures:

  • Company in formation and adoption of acts
  • Founder share warrants and preferred shares
  • Shareholder current account
  • Post-registration kit

The method

How the firm supports you

From the assessment of the project to the post-registration kit.

Step 1

Assessment of the project

Review of the business model, the founders, the risks and the timetable of any fundraising.

Step 2

Choice of structure and drafting

Choice of form reasoned in writing, tailor-made articles of association, and a shareholders' agreement drafted in parallel and checked article by article.

Step 3

INPI formalities

Complete filing with the one-stop shop, resolution of formal remarks, and follow-up until registration.

Step 4

Post-registration kit

First minutes, corporate registers, the director's social security registration, and accounting set-up.

Benchmarks: two-year limitation period for actions for nullity of a company (Article 1844-14 of the French Civil Code); five-year joint and several liability for contributions in kind without an auditor.

The timetable

The timeline of a company formation

Skipping a step or reversing the order wastes time and exposes the filing to rejection.

  1. Choice of form

    Step 1. SAS, SARL, SASU, EURL or SA depending on the project, the shareholders and the financing horizon.

  2. Articles of association

    Step 2. Mandatory contents, sensitive clauses, and coordination with the shareholders' agreement.

  3. Contributions

    Step 3. Payment of cash contributions and, where applicable, the auditor's report on contributions in kind.

  4. Constitutive general meeting

    Step 4. Adoption of the articles of association, appointment of the director, first decisions.

  5. INPI one-stop shop

    Step 5. Filing of documents, check of the corporate purpose and registered office, registration with the Trade and Companies Register (RCS).

  6. Publication and launch

    Step 6. Legal notice, BODACC, corporate registers, the director's social security registration, accounting set-up.

The checks

What the firm checks before registration

No filing is made until these points have been validated.

  • Consistency between articles and agreement: the commitments in the shareholders' agreement do not contradict the articles of association.
  • Director's powers and limits: commitment ceilings, prior authorisations, transactions subject to a vote.
  • Validity of sensitive clauses: approval, expulsion, pre-emption, anti-deadlock.
  • Contributions: valuation, contributions auditor where applicable, and the five-year joint and several liability kept in proportion.
  • Marital status: notification to, and waiver by, a spouse married under community of property.
  • Compatibility of the corporate purpose with regulated activities and the registered office.

Summary

Situation, risk, document, decision

The most frequent trade-offs the firm sees in company formation matters.

Situation

Two shareholders at 50/50

Main risk: Complete deadlock of general meetings.

Document to prepare: Shareholders' agreement with a deadlock-resolution clause.

Recommended decision: Include mediation followed by a forced sale.

Situation

Fundraising within 18 months

Main risk: Articles of association not prepared for the arrival of an investor.

Document to prepare: SAS articles of association with preferred shares.

Recommended decision: Choose the SAS from the outset.

Situation

Contribution in kind of equipment

Main risk: Overvaluation and joint and several liability of the shareholders.

Document to prepare: Report of the contributions auditor.

Recommended decision: Appoint an auditor if more than €30,000.

Situation

Spouse married under community of property

Main risk: Claim to half of the shares.

Document to prepare: Notification to the spouse and waiver.

Recommended decision: Obtain the written waiver before signing.

Situation

Regulated activity (health, finance, security)

Main risk: Refusal of registration by the INPI.

Document to prepare: Proof of authorisation or licence.

Recommended decision: Check the compatibility of the corporate purpose before drafting.

Situation

Director paid from the first month

Main risk: Reclassification for tax and social security purposes.

Document to prepare: Written decision of the competent body.

Recommended decision: Document how the pay is set and justified.

Frequently asked questions

Your questions: company formation

What is the best legal form for starting a business in Paris?

There is no single best form in the abstract. The choice depends on the number of shareholders, the financing horizon, the director's social security regime, the intended tax treatment and the plans for a future sale. The SAS remains the most common form in Paris for projects open to outside capital. The SARL suits asset-holding or family structures. The firm sets out the trade-off in writing with a quantified comparison.

How much does it cost to set up a company in Paris?

Beyond the statutory registration and publication costs (around €200 to €300 for an SAS or SARL), the fees for assistance vary with the complexity of the matter (number of shareholders, contributions in kind, fundraising, shareholders' agreement). A standard formation with drafting of the articles of association and a simple shareholders' agreement is generally priced from €2,500 incl. VAT. Multi-shareholder projects with investors start at €4,500 incl. VAT.

How long does registration with the Trade and Companies Register take?

A complete file filed with the INPI one-stop shop is registered on average within fifteen business days. The timing depends on how complete the documents are, the consistency of the corporate purpose, any need for a prior authorisation and the workload of the court registry. The firm anticipates the control points to limit formal rejections.

Is a contributions auditor always required?

No. For the SARL and the SAS, the shareholders may decide unanimously to dispense with one if no contribution in kind exceeds €30,000 and the total value of the unvalued contributions in kind does not exceed half of the share capital (Article L. 223-9 of the French Commercial Code). Without an auditor, the shareholders are jointly and severally liable to third parties for five years for the value adopted.

What is the difference between the articles of association and the shareholders' agreement?

The articles of association are public, enforceable against third parties and establish the existence of the company. They contain the mandatory contents of Article L. 210-2 of the French Commercial Code (form, duration, name, registered office, corporate purpose, share capital). The shareholders' agreement is a private contract between its signatories, more flexible and confidential. It governs what the articles of association cannot say with as much precision: a quantified exit, valuation, fine-grained governance and preferential rights.

What is the minimum share capital for an SARL, SAS or SA?

There is no statutory minimum for the SARL and the SAS: the share capital can be set at a token €1. The SA requires share capital of at least €37,000, in accordance with Article L. 224-2 of the French Commercial Code. In practice, share capital that is too low weakens credibility with banks and suppliers; share capital that is overvalued can become difficult to pay up in cash within the statutory time limits.

Contribution in cash or in kind: which to choose?

A cash contribution is paid immediately (at least one fifth for the SARL, half for the SAS) and the balance within five years. A contribution in kind transfers an asset (equipment, business, patent) to the company and must be rigorously valued. A contribution of work or know-how (apport en industrie) remains rare: it entitles the contributor to profits but does not form part of the share capital. The choice depends on the available cash and the assets to be transferred.

Is the director personally liable for the company's debts?

As a rule, no: the corporate veil protects personal assets. But this protection gives way in the event of a management fault that contributed to a shortfall in assets (Article L. 651-2 of the French Commercial Code), a fault separable from the director's duties, a personal guarantee or a breach of tax obligations. Documented governance is the best protection.

When should a shareholders' agreement be put in place?

As soon as there are at least two shareholders. The subjects to settle: exit rules (drag-along, tag-along, bad leaver), valuation on a sale, fine-grained governance, enhanced information rights and a deadlock-resolution clause. The agreement is drafted in parallel with the articles of association and ideally signed on the same day.

What if a shareholder refuses to sign the articles of association?

If the company has not yet been formed, the project cannot proceed without that shareholder's agreement. You must then renegotiate or leave the shareholder out of the capital table before signing. If the company already exists and the change is to the articles of association, the majority rules in the articles apply. An abusive blocking vote may be sanctioned as an abuse of minority rights (Cass. com., 14 January 1992, Vitama case).

Can the INPI refuse a registration?

Yes. The usual grounds: a corporate purpose incompatible with a regulated activity without authorisation, incomplete or non-compliant documents, a name already registered with the INPI, an unjustified registered office, or a director subject to a management ban. The firm checks each sensitive point before filing to avoid a rejection or a request for further documents.

Can the articles of association be amended after registration?

Yes, by collective decision of the shareholders under the majority rules in the articles of association (an extraordinary general meeting for the SARL, a collective decision for the SAS as provided by the articles). Any amendment must be published and declared to the Trade and Companies Register. The cost and the timing increase with the complexity: change of corporate purpose, transfer of the registered office to another département, conversion into another form.

Do I need a lawyer or an accountant to set up a company?

The two step in at different times. The lawyer designs the legal structure, drafts the articles of association and the shareholders' agreement, and secures the contributions and the registration. The accountant sets up the bookkeeping, files the VAT returns and handles payroll. A company can be formed online through the INPI one-stop shop, but a badly drafted deed costs more to correct than to prevent.

Which tax regime at the start: corporate income tax or personal income tax?

By default, the SAS, the SASU and the SA are subject to corporate income tax (IS). The standard SARL is too, unless it opts for personal income tax (IR), limited to five years for family SARLs or companies meeting certain conditions. The EURL of an individual sole shareholder falls under IR, unless it opts for IS. The choice affects the director's taxation and the dividend distribution strategy.

Which court has jurisdiction over a dispute about the articles of association of a Paris company?

Disputes between shareholders and those relating to the running of the company fall within the jurisdiction of the commercial court (tribunal de commerce) of the registered office, that is the Paris commercial court for a company registered in the capital. The articles of association may provide an arbitration clause that departs from this jurisdiction. The firm regularly appears before this court.

Let us discuss your formation project.

Sole founder or several, simple project or fundraising in preparation: send your project and your constraints. The firm replies within 24 business hours with an initial assessment.

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What our clients say

4,9289 Google reviews
kader ladjouzi
1 month ago

Best real estate law and business law lawyer in Paris. A humane and attentive lawyer, with a wonderful team. Thank you, Maître KOHEN

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Janou SAMUEL
2 months ago

Thank you to Maître KOHEN for his analyses of recent case law on fraudulent non-disclosure in property sales. It reassures me about an action for annulment that I am considering after buying a house affected by serious defects intentionally concealed by the seller and not reported by the estate agent; also defects (rising damp) characterised by spreading through-cracks and damp stains, not reported by the estate agent… Worse, defects concealed by the latter or at his instigation, under a coat of paint and by polystyrene tiles glued to the ceiling of a bedroom. And the said estate agent drafted the preliminary contract, which of course contains no information about any of these defects. Just to add that, being 77 years old and suffering from cognitive impairment, I am certain that the estate agent thought I would not be able to discover the deception and above all to establish the fraudulent intent, still less to bring legal proceedings given the complexity and length of the procedure... That is why I am opting for the criminal route, insofar as the intentional concealment of the defects by the seller and then by the estate agent amounts to the fraudulent manoeuvres of art. 313-1 of

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Paul MALIK (powlo)
5 months ago

Maître Reda KOHEN assisted me in a dispute concerning a sale agreement with a defaulting party. He provided professional and responsive support, and I highly recommend him.

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6 months ago

I highly recommend Maître Reda Kohen. Thanks to his explanations, I was able to recover my security deposit in a situation that seemed blocked. He was responsive, clear, and very professional. A big thank you for his invaluable help!

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Naji Jouahri
6 months ago

Excellent support from Maître Kohen in a case combining business law and real estate law. Clear legal analysis from the first meeting, right through to the hearing. Professional and accessible lawyer, I highly recommend his firm in Paris 17.

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6 months ago

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6 months ago

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7 months ago

I turned to Maître Kohen for a complex real estate dispute and I highly recommend his firm. He is very professional; he thoroughly analyzed my case from the very first appointment and clearly explained the possible options. Thanks to his expertise, we achieved a very favorable outcome. Responsive, a good teacher, and committed, he is a lawyer you can truly trust. Yours faithfully, Miss Maazaz

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1 week ago

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1 week ago

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2 weeks ago

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3 weeks ago

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3 weeks ago

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