For launching a commercial, civil, or mixed activity, both the Limited Liability Company (SARL) and Simplified Joint Stock Company (SAS) are proven options trusted by entrepreneurs. The best choice hinges on your specific goals. Importantly, converting a SARL to an SAS is straightforward through established formalities if your needs evolve.
SARLs operate under rigid Commercial Code rules covering share transfers, management powers, general meetings, and more—providing strong partner protections that cannot be overridden. This suits stable setups but can stifle rapid growth. Seasoned entrepreneurs often prefer SAS for its flexibility. With lighter regulations, partners can tailor decision-making, statutes, and governance freely. Proceed with care, as this autonomy demands solid organization to mitigate risks.
Both SARL and SAS face corporate income tax. Dividend taxation is comparable, though SAS presidents enjoy lower social contributions than SARL managers. Since January 2018, the Flat Tax (PFU) levels the field: a flat 30% rate (17.2% social charges + 12.8% income tax) on dividends replaces progressive scales. Overall, taxation aligns closely for both.
Tax on executive pay mirrors employees' for both. The key differentiator is social security: SARL managers follow the TNS (self-employed worker) regime, while SAS presidents access the general scheme with comprehensive coverage. Neither qualifies for standard unemployment insurance—only CDD/CDI employees do via Pôle Emploi. Managers should secure optional private insurance.
Transfers require notarized deeds and registration fees: 3% of the sale price for SARL shares versus just 0.1% for SAS stock.
