SA

S.A. is France’s public limited company. It is the equivalent of the US’ “Inc.” or the UK’s PLC. This is the legal entity of large corporations and other publicly traded shareholder companies.

As such, the company formation formalities of governance of the SA are more complex. Unlike the nominal share capital deposit required for private limited liability companies, the SA requires a minimum share capital of €37,000 to incorporate (€225,000 for a public offering).

Formation of the SA requires a minimum of two shareholders – seven if its stocks are publicly traded.

The SA’s management comprises directors, a CEO, and a chairperson. The CEO can also be the Chairman of the board of directors. The board of directors has three to eighteen members, an executive board with a maximum of five members, and a supervisory board of three to eighteen members.

The board of directors approves the accounts with the shareholders at its ordinary annual general meeting (AGM)  once a year.

While some commercial activities cannot be carried out under this legal form (e.g., a pharmaceutical dispensary, tobacco shops), others, such as mixed-economy companies or insurance companies, must incorporate as SA.

There are no limits on the maximum number of shareholders. The CEO must be a natural person. She/he is not obliged to be a director unless they are also the chairman of the board. A chartered accounting firm must also be named to audit the books annually.

Forming a French SA is infinitely more complex and will require the engagement of legal expertise, continual interaction throughout the process, and notarial approvals at each stage. As such, even a simple, non-quoted SA is more exhaustive and expensive to incorporate.