You live in London, New York, Dubai or Singapore, and the French subsidiary or SAS you set up from abroad is finally growing. Turnover is climbing, you have hired a team outside Paris or in the capital, and your French accountant sends you a short email with an unfamiliar acronym: CAC. The CAC, the commissaire aux comptes, is the French statutory auditor, an independent professional whose job is to certify that your company’s annual accounts are true and fair. Most foreign founders discover this obligation late, often when the accountant announces that two of the legal thresholds have been crossed and that an auditor must now be appointed, or when a minority shareholder demands one. This is not a formality you can postpone with a board minute. Failure to appoint a mandatory auditor exposes the company and its managers to criminal fines, and meetings held without a properly appointed auditor can see their decisions annulled by the courts. The good news is that the whole sequence, measuring the thresholds, voting the appointment, signing the engagement letter and filing with the registry, can be handled from abroad if you follow the right order and keep the evidence. This article explains, for a foreign owner doing business in France, when a French SAS, SARL or SA must appoint a statutory auditor, how minority shareholders or a group situation can force the appointment even below the thresholds, how to appoint and register the auditor without flying to France, and what happens when the appointment was missed. Every French acronym is explained, every decisive rule is quoted from its official source, and three recent decisions of the Cour de cassation, the French supreme court for commercial matters, show how judges actually sanction irregular appointments.<\/p>\n
The short answer surprises many foreign owners: a small French company often needs no auditor at all, until the day it crosses two of three size thresholds, or until a shareholder, a court or a group structure imposes one. French law does not require every company to hire a CAC. It sets size criteria, measured at the close of each financial year, and adds several side doors through which an auditor can enter even a small company. Understanding these doors before they open is the difference between a planned appointment and a crisis filing.<\/p>\n
The central text for the SAS, the soci\u00e9t\u00e9 par actions simplifi\u00e9e, the flexible joint-stock company most foreign founders choose, is Article L.227-9-1 of the Commercial Code<\/a>, which provides: “Sont tenues de d\u00e9signer au moins un commissaire aux comptes les soci\u00e9t\u00e9s par actions simplifi\u00e9es qui d\u00e9passent, \u00e0 la cl\u00f4ture d’un exercice social, deux des seuils suivants, fix\u00e9s par d\u00e9cret : le total de leur bilan, le montant de leur chiffre d’affaires hors taxe ou le nombre moyen de leurs salari\u00e9s au cours de l’exercice.” In plain English, your SAS must appoint at least one statutory auditor when, at the end of a financial year, it exceeds two of the following three markers: total balance sheet, net turnover excluding VAT, and average headcount during the year. The three markers are cumulative in pairs: exceeding only one of them, however largely, triggers nothing, while exceeding any two triggers the obligation. Balance sheet total means the sum of all assets shown on the balance sheet, turnover means net sales excluding VAT, and headcount means the average number of employees over the financial year, not the number on the last day.<\/p>\n The figures themselves are fixed by regulation. Article D.227-1 of the Commercial Code<\/a> explains that the thresholds mentioned in Article L.227-9-1 for the appointment of a statutory auditor are those defined in Article D.221-5. And Article D.221-5 of the Commercial Code<\/a> sets them as follows: “le total du bilan est fix\u00e9 \u00e0 5 000 000 euros, le montant hors taxe du chiffre d’affaires \u00e0 10 000 000 euros et le nombre moyen de salari\u00e9s \u00e0 cinquante.” Your SAS therefore crosses into mandatory audit territory when it exceeds, for example, 5 million euros of balance sheet total together with 10 million euros of turnover, or either financial marker together with an average of more than 50 employees. The official business guidance published by the French administration on service-public.fr<\/a> confirms the same three figures for the SAS and adds a timing rule many accountants forget to mention: crossing the thresholds during a financial year does not require certification of that year’s accounts, since the duty applies from the following financial year. Crossing the thresholds during year N does not force you to have the year N accounts certified; the appointment must be in place so that the auditor can certify the accounts of year N+1. That one-year breathing space is precious for a foreign owner: it is the window in which to select the auditor, vote the appointment and file it, rather than discovering the obligation when the accounts are already closed.<\/p>\n Symmetrically, the obligation ends when the company shrinks back below the markers. Article D.227-1 of the Commercial Code<\/a> provides: “La soci\u00e9t\u00e9 n’est plus tenue de d\u00e9signer un commissaire aux comptes d\u00e8s lors qu’elle n’a pas d\u00e9pass\u00e9 les chiffres fix\u00e9s pour deux de ces trois crit\u00e8res pendant les deux exercices pr\u00e9c\u00e9dant l’expiration du mandat du commissaire aux comptes.” You may therefore let the mandate expire without renewal only when the company has stayed below two of the three thresholds for the two financial years before the mandate ends. Note the trap for groups in high-growth phases: a single exceptional year above two thresholds starts the clock, and a return below the markers for only one year does not end the obligation. Keep a simple threshold table in euros, year by year, with the three markers and the supporting trial balances, because this table is the first document a judge or an inspector will ask for when the regularity of the appointment is disputed.<\/p>\n The SAS is not the only vehicle concerned. The same administration page details equivalent threshold regimes for the SARL, the soci\u00e9t\u00e9 \u00e0 responsabilit\u00e9 limit\u00e9e, the limited liability company with intuitu personae shares, the SA, the soci\u00e9t\u00e9 anonyme, the classic public limited company, the SNC, the soci\u00e9t\u00e9 en nom collectif, the general partnership, and small groups, each with its own article, and notes that entities required to publish consolidated accounts must appoint two independent auditors from different firms. If you are still hesitating between vehicles, our overview of how to choose between SAS, SARL, branch and subsidiary in France<\/a> explains the trade-offs before the auditor question even arises. For a foreign parent, the practical reflex is identical whatever the vehicle: ask your accountant, at every year-end close, for a one-page threshold memo with the three figures and the conclusion, and keep it with the annual file. That memo costs little and prevents the most common crisis, learning about the obligation eighteen months late.<\/p>\n Thresholds are only the main door. French law opens three side doors through which an auditor can enter your company even when it is small, and foreign-owned companies walk through them more often than purely domestic ones, because they frequently have minority partners, foreign shareholders or group links.<\/p>\n The first side door is voluntary appointment. The shareholders may simply decide to appoint an auditor although the law does not require one, typically because a bank financing the French subsidiary demands certified accounts, because a future buyer or investor wants three years of certified statements, or because the foreign parent’s own auditors require a local certification package. A voluntary appointment follows the same voting and filing formalities as a mandatory one and gives the company the same protection of certified accounts, so lenders and partners treat the figures as verified rather than merely prepared.<\/p>\n The second side door belongs to minority shareholders, and it matters greatly when you hold the French company with a local partner or when your foreign co-investors hold even a small stake. Article L.227-9-1 of the Commercial Code<\/a> provides: “M\u00eame si les conditions pr\u00e9vues au deuxi\u00e8me alin\u00e9a ne sont pas atteintes, la nomination d’un commissaire aux comptes peut \u00eatre demand\u00e9e en justice par un ou plusieurs associ\u00e9s repr\u00e9sentant au moins le dixi\u00e8me du capital.” Any shareholder or group of shareholders holding at least 10 percent of the capital can therefore ask the court to appoint an auditor although the thresholds are not met, and the judge decides freely whether the request is justified. The same article adds a heavier variant: “Sont \u00e9galement tenues de d\u00e9signer un commissaire aux comptes, pour un mandat de trois exercices, les soci\u00e9t\u00e9s dont un ou plusieurs associ\u00e9s repr\u00e9sentant au moins le tiers du capital en font la demande motiv\u00e9e aupr\u00e8s de la soci\u00e9t\u00e9.” Shareholders holding at least one-third of the capital can impose an auditor for a three-financial-year mandate by sending the company a reasoned request, without going to court at all. For a foreign majority owner, the lesson is concrete: a 10 percent local partner who suspects opaque management can bring a judge into the company, and a 33 percent partner can impose a three-year audit by letter. Transparent reporting to minority holders is not courtesy here; it is prevention.<\/p>\n The third side door is the court itself ruling on a 10 percent request. Article D.227-1 of the Commercial Code<\/a> specifies: “Dans le cas pr\u00e9vu au troisi\u00e8me alin\u00e9a de l’article L. 227-9-1, le commissaire aux comptes est d\u00e9sign\u00e9 par jugement du pr\u00e9sident du tribunal de commerce statuant selon la proc\u00e9dure acc\u00e9l\u00e9r\u00e9e au fond.” The president of the commercial court, the tribunal de commerce, the specialist business court, appoints the auditor by judgment under the fast-track procedure on the merits. If your registered office, your si\u00e8ge social, is in Paris, that application goes to the president of the Paris commercial court, and the greffe, the court registry that keeps the company register, records the outcome. A foreign owner who receives such a court application should treat it as urgent litigation, not as an administrative letter: instruct counsel in France immediately, gather the threshold memo and the accounts, and never let the hearing go undefended, because the designation judgment will shape the next three to six years of the company’s accounting life.<\/p>\n The fourth situation is the group. A small French SAS can need an auditor because of its parent, not because of its own size: controlled companies within certain groups, parents that must publish consolidated accounts, and entities whose headcount, balance sheet or turnover must be aggregated with sister companies can all fall under a designation duty of their own. The service-public.fr guidance page lists dedicated small-group cases for parent entities and for companies controlled by a parent, and recalls that groups publishing consolidated accounts must appoint two auditors independent of each other. Foreign founders routinely miss this dimension because they measure only the French subsidiary in isolation while the law sometimes looks at the wider group. When your French company belongs to an international group, ask the accountant two questions every year, not one: do our own figures cross the thresholds, and does our group position trigger a designation duty of its own? Keep the written answers together.<\/p>\n Finally, understand what the auditor actually does once appointed, because it explains both the cost and the protection. The CAC certifies that the annual accounts are regular, sincere and give a true and fair view; checks the values and documents on which the figures rest; reports to the shareholders at the annual meeting; triggers an alert procedure when it detects facts likely to jeopardise the company’s continuity; and must disclose to the public prosecutor criminal acts it discovers during its mission. That last duty, the r\u00e9v\u00e9lation des faits d\u00e9lictueux, is why auditors ask intrusive questions and why managers sometimes experience the audit as hostile. It is in reality a shield for honest directors: certified accounts make it far harder for a creditor, a tax inspector or a minority shareholder to claim later that the figures were manipulated, and the auditor’s alert procedure forces difficulties onto the table early, when remedies still exist.<\/p>\n Knowing that an auditor is required is only half of the work. The appointment itself follows a strict choreography, a shareholder vote, an engagement letter, a registry filing, and each step leaves a paper trail that must be complete because courts check it years later when a decision is challenged. A foreign owner can direct the whole sequence by email and video call, provided the documents are properly signed and filed in France.<\/p>\n The appointment is a collective decision of the shareholders, not a solo decision of the president or manager, even when you own 100 percent of the company through your foreign holding. In an SAS, Article L.227-9-1 of the Commercial Code<\/a> opens with the principle that “Les associ\u00e9s peuvent nommer un ou plusieurs commissaires aux comptes dans les conditions pr\u00e9vues \u00e0 l’article L. 227-9”, which refers to the collective-decision rules of the SAS, and the administration guidance confirms that the designation is made by collective decision of the shareholders on a proposal from the president or another management body. In practice, the president circulates a draft resolution proposing a named auditor, with a deputy auditor where one is still required or desired, the shareholders vote in the form the articles provide, written procedure, video meeting or physical meeting, and the minutes record the name of the firm or individual, the mandate and the majority. In an SA, the mechanism is even more formal: Article L.225-228 of the Commercial Code<\/a> provides that “Les commissaires aux comptes sont propos\u00e9s \u00e0 la d\u00e9signation de l’assembl\u00e9e g\u00e9n\u00e9rale par un projet de r\u00e9solution \u00e9manant du conseil d’administration ou du conseil de surveillance ou, dans les conditions d\u00e9finies par la section 3 du pr\u00e9sent chapitre, des actionnaires.” Whatever the vehicle, keep the signed minutes, the attendance sheet or written-procedure replies, and the auditor’s written acceptance: ten years later, these three papers prove the appointment was regular.<\/p>\n Choosing the auditor deserves the same care as choosing a bank. Only persons and firms registered with the Haute Autorit\u00e9 de l’audit, the H2A, the public authority that supervises the audit profession in France, may serve as CAC, and the company’s own accountant cannot audit the accounts it prepared. Ask candidates for their H2A registration details, their experience with foreign-owned subsidiaries, their working language, their fee structure for a six-year mandate, and their position on group reporting packages your parent’s auditors may require. Then sign an engagement letter, the lettre de mission, before the auditor starts any fieldwork: it defines the scope, the timetable around your year-end close, the deliverables including the certification report and any management-letter remarks, the fees and indexation, and the access the auditor will need to your books, contracts and bank statements. A foreign owner should insist on one clause in particular: interim work scheduled before the year-end, so that the audit does not collide with the six-month deadline for approving the accounts and the subsequent filing deadlines at the registry.<\/p>\n The standard mandate runs for six financial years and is renewable, which means the vote you organise today binds the company until the early 2030s if appointed now; the one-third minority-requested mandate described above runs for three financial years instead. Plan the expiry date from day one and diary the renewal or exit analysis two years ahead, because the two-year below-thresholds test for non-renewal is measured backwards from expiry. When the auditor resigns mid-term, do not assume the mandate ends with the resignation: the Cour de cassation held on 10 May 2024, for mandates affected by the 2019 PACTE reform of SAS audit thresholds, that “cette d\u00e9mission ne met pas fin au mandat et qu’il doit, en cons\u00e9quence, \u00eatre proc\u00e9d\u00e9 \u00e0 leur remplacement pour la dur\u00e9e du mandat restant \u00e0 courir.” The official decision is published as Cour de cassation, Commercial Chamber, 10 May 2024, appeals nos. 22-16.158 and others<\/a>. The same decision fixes the temporal boundary of the reform: the new SAS designation rules in Article L.227-9-1 as amended by the statute of 22 May 2019 “ne s’appliquent pas aux mandats en cours au 27 mai 2019”, with the resignation changing nothing. Replace a departing auditor for the remainder of the term, and record the replacement vote as carefully as the initial one.<\/p>\n Filing is the step foreign owners most often forget, yet an unfiled appointment is an appointment a third party can pretend not to know. The appointment must be declared through the Guichet unique, the single online window for business formalities in France, which transmits the change to the Registre national des entreprises and to the greffe of the competent commercial court. The Kbis, the official registration certificate that proves the company’s legal existence and is issued by the greffe, is then updated, and the appointment is published at the BODACC, the Bulletin officiel des annonces civiles et commerciales, the official gazette where company events become opposable to third parties. Prepare a filing pack before anyone clicks anything: the signed minutes of appointment, the auditor’s acceptance letter with H2A registration details, an updated beneficial-owner position if the filing triggers a review, and a French translation by a sworn translator of any foreign-language supporting document such as the parent’s powers. If the registered office is in Paris or elsewhere in the \u00cele-de-France region, the competent greffe is the registry of the local commercial court, in Paris the greffe du tribunal de commerce de Paris, and rejections most often come from a missing acceptance letter or an inconsistent company name, both fixable by refiling rather than by travelling to France. Order a fresh Kbis after registration and check that the auditor’s name appears correctly: that extract is the everyday proof banks, lessors and counterparties will ask for.<\/p>\n Missing a mandatory appointment is not a paperwork delay like a late filing with a small surcharge. It is a criminal offence, and it poisons the company’s meetings for as long as the irregularity lasts. The administration states the sanction bluntly: failure to appoint a mandatory auditor can lead to two years of imprisonment and a 30,000 euro fine. Those headline figures every foreign director should know, and they sit alongside adjacent sanctions that show how seriously French law treats accounting regularity. Managers of a SARL who fail to submit the inventory, the annual accounts and the management report to the shareholders face their own penalty, since Article L.241-5 of the Commercial Code<\/a> provides: “Est puni de 9 000 \u20ac d’amende le fait, pour les g\u00e9rants, de ne pas soumettre \u00e0 l’approbation de l’assembl\u00e9e des associ\u00e9s ou de l’associ\u00e9 unique l’inventaire, les comptes annuels et le rapport de gestion \u00e9tablis pour chaque exercice.” And the profession itself is held to a severe standard, because Article L.821-9 of the Commercial Code<\/a> punishes false certification by an auditor at the highest level: “Est puni d’un emprisonnement de cinq ans et d’une amende de 75 000 euros le fait, pour toute personne exer\u00e7ant la profession de commissaire aux comptes, de donner ou de confirmer des informations mensong\u00e8res sur la situation de la personne morale ou de ne pas r\u00e9v\u00e9ler au procureur de la R\u00e9publique les faits d\u00e9lictueux dont elle a eu connaissance.” The annual-accounts duty itself is permanent: Article L.232-1 of the Commercial Code<\/a> requires that “A la cl\u00f4ture de chaque exercice le conseil d’administration, le directoire ou les g\u00e9rants dressent l’inventaire, les comptes annuels conform\u00e9ment aux dispositions de la section 2 du chapitre III du titre II du livre Ier et \u00e9tablissent un rapport de gestion \u00e9crit.” Accounts must be drawn up every year whether or not an auditor exists, and the auditor’s certification then locks their credibility.<\/p>\n Beyond fines, the civil sanction strikes where foreign owners feel it most: the validity of decisions voted by the shareholders. The Cour de cassation has built a precise body of case law on meetings held without a properly appointed auditor, and two recent rulings draw the boundary every owner should memorise. On 21 June 2023, ruling on a dispute where a meeting had been annulled because only the deputy auditor was missing, the Commercial Chamber quashed the appeal judgment, holding that the lower court should have drawn the consequence “ce dont elle aurait d\u00fb d\u00e9duire que cette d\u00e9lib\u00e9ration ne pouvait \u00eatre annul\u00e9e au seul motif qu’un commissaire aux comptes suppl\u00e9ant n’avait pas \u00e9t\u00e9 nomm\u00e9”. The official decision is published as Cour de cassation, Commercial Chamber, 21 June 2023, appeal no. 21-19.985<\/a>. A meeting held while a properly appointed principal auditor is in place cannot be annulled merely because the deputy seat is vacant. But the mirror situation is far more dangerous, as the Court confirmed on 11 March 2026: where a company held a meeting with no auditor at all, the nullity plea failed only because the disputed meeting was extraordinary, the Court approving the reasoning that “la nullit\u00e9 pr\u00e9vue par ces textes, qui ne concerne que les seules d\u00e9lib\u00e9rations des assembl\u00e9es g\u00e9n\u00e9rales ordinaires, ne s’applique pas \u00e0 l’assembl\u00e9e g\u00e9n\u00e9rale litigieuse.” The official decision is published as Cour de cassation, Commercial Chamber, 11 March 2026, appeal no. 24-16.260<\/a>. Read together, the two rulings mean that ordinary annual meetings, the very meetings that approve the accounts, vote the dividend and discharge the managers, are the exposed zone: hold them with no auditor when one was mandatory, and the resolutions, including a removal of a manager or an approval obtained in contested circumstances, can be wiped out years later at the request of whoever benefits from the annulment.<\/p>\n If the appointment was missed, the remedy is a disciplined late fix, not concealment. First, freeze the calendar: suspend any planned ordinary meeting until the auditor question is resolved, because every new resolution adopted without a mandatory auditor adds another annullable act. Second, rebuild the threshold history for the last three financial years with the accountant, in a table showing balance sheet total, turnover excluding VAT and average headcount, so you know exactly since when the obligation arose and which past meetings are exposed. Third, convene the shareholders from abroad to appoint the auditor immediately, using a written procedure or video meeting as the articles allow, with electronic or wet signatures accepted by the Guichet unique, and file the appointment the same week so the Kbis and the BODACC publication close the gap. Fourth, ask the newly appointed auditor to review the exposed past accounts and advise whether a confirmatory vote can purge the irregularity for the future; the auditor cannot rewrite history, but regular accounts going forward stop the bleeding. Fifth, assess the criminal exposure with counsel in France before any voluntary disclosure: spontaneous regularisation usually improves the picture, yet there is no amnesty mechanism, so the filing pack, the threshold memo and the meeting minutes must be consistent before anything is sent. Throughout, keep every email with the accountant about thresholds, because it proves when you learned of the duty and that you acted without delay, two facts judges weigh heavily.<\/p>\n Three practical habits then keep a foreign-owned company safe year after year. Diary the threshold memo at each year-end close and the mandate-expiry analysis two years ahead. Keep the auditor acceptance letter, the appointment minutes and the updated Kbis in a single corporate file, in French, accessible to any director within a day. And brief every new minority partner, lender or group finance team on the auditor’s role before they ask: the CAC is not an adversary planted in your company but the professional whose signature makes your French accounts credible to banks, courts and buyers. Handled early, the appointment is a routine filing that strengthens the subsidiary; handled late, it becomes litigation about every decision the company took without one.<\/p>\n A French statutory auditor becomes mandatory when your SAS or SARL exceeds two of the three size markers, 5 million euros of balance sheet total, 10 million euros of turnover excluding VAT, 50 employees on average, with the duty starting for the following financial year and ending only after two years back below the markers. Minority shareholders holding 10 percent can ask a court for an auditor, holders of one-third can impose a three-year mandate by reasoned request, and group positions can trigger duties of their own, so measure both the company and its environment every year. Appoint by collective shareholder decision, sign the engagement letter with an H2A-registered auditor, file through the Guichet unique and check the updated Kbis and BODACC publication, all of which can be done from abroad. The price of neglect is measured in criminal fines up to two years of imprisonment and 30,000 euros, and in ordinary-meeting resolutions that courts can annul, as three recent Cour de cassation decisions confirm with precision. The threshold memo you request from your accountant this week is therefore the cheapest legal document your French company will ever produce: one page, three figures, and the certainty of knowing whether an auditor must sit beside you at the next annual meeting.<\/p>\n","protected":false},"excerpt":{"rendered":" Your French SAS or SARL crossed two of the three audit thresholds while you live abroad. This guide explains when a statutory auditor (commissaire aux comptes) becomes mandatory, how minority shareholders or a group can impose one, and how to appoint, file and fix a missed appointment from abroad.<\/p>\n","protected":false},"author":251031309,"featured_media":4170,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_kj_source_type":"","_kj_official_id":"","_kj_official_url":"","_kj_judilibre_id":"","_kj_jur":"","_kj_lieu":"","_kj_chambre":"","_kj_rg":"","_kj_date":"","activitypub_content_warning":"","activitypub_content_visibility":"","activitypub_max_image_attachments":4,"activitypub_interaction_policy_quote":"anyone","activitypub_status":"federated","footnotes":""},"categories":[80314,80313],"tags":[],"class_list":["post-2143937","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-decryptage","category-doing-business-in-france"],"yoast_head":"\nB. Voluntary Appointment, Minority Shareholders and Group Structures That Impose an Auditor Anyway<\/h3>\n
II. How Do You Appoint the Auditor, File the Paperwork and Deal With the Consequences From Abroad?<\/h2>\n
A. Vote the Appointment, Sign the Engagement and File With the Registry Without Flying to France<\/h3>\n
B. Criminal Fines, Annulled Meetings and the Late Fix When the Appointment Was Missed<\/h3>\n
Conclusion<\/h2>\n