Most common business entity in France
The SARL / SAS is the standard choice for most small- to mid-size businesses in France. Like a US LLC, it provides limited liability protection separated from the owners' personal assets. SAS more flexible than SARL; recommended for VC-backed.
The full menu of France business structures
| Structure | Liability | Tax | Best for |
|---|---|---|---|
| SARL / SAS | Limited | 25% corporate | Most operating businesses |
| Sole proprietor / self-employed | Unlimited personal | Personal income tax rates | Freelancers, one-person services |
| Partnership | Joint and several | Pass-through to partners | Professional services (law, accounting) |
| Branch of foreign company | Parent company liability | 25% on France-source profits | Foreign companies entering France market |
| Public limited company | Limited | Same as SARL / SAS but stricter | Companies preparing for listing |
Which one should you pick?
- Freelance or one-person service in France? Self-employed structure if simple, SARL / SAS if you want liability protection.
- Software / e-commerce / agency? SARL / SAS — standard, scalable.
- Operating an existing foreign company in France? Branch (simpler) or subsidiary SARL / SAS (more substance).
- Planning to raise venture capital? Confirm investors accept France entities. Many require a US Delaware C-Corp flip — see US company formation.
- Holding company for IP or other companies? SARL / SAS with minimal substance requirements.
The SARL / SAS in one paragraph
SARL / SAS is France's primary limited liability vehicle. Minimum paid-up capital: nominal. Headline corporate tax: 25%. 15% on first €42,500 (SMEs), 25% above. CVAE phasing out by 2027.. Banking accessibility: 9/10. Privacy: 4/10 (UBO non-public). Remote formation: yes. Processing time: 7 business days.
For US comparison, see France vs USA. For non-resident formation specifics, see forming a France company as a non-resident.