What is the difference between SAS and SASU?
When starting a business, choosing the right company form is crucial. This article will introduce two common company forms: SAS and SASU, and help you understand how to make a choice between them.
When starting a business, choosing the right company form is crucial. This article will introduce two common company forms: SAS (Simplified Joint Stock Company) and SASU (Simplified Single-Shareholder Company), and help you understand how to make a choice between them.
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Table of Contents
- What are SAS and SASU?
- Common Features of SAS and SASU
- Key Differences Between SAS and SASU
- How to Convert from SASU to SAS
1. What are SAS and SASU?
- SAS: Simplified Joint Stock Company, is a flexible company form in France. Compared to other company forms, the establishment procedures for SAS are simpler and offer higher flexibility. Establishing an SAS requires at least two shareholders, who can be natural persons or legal entities.
- SASU: Simplified Single-Shareholder Company, is the single-shareholder version of SAS. SASU has only one shareholder, making it suitable for individuals who wish to start a business alone. Unlike Sole Proprietorship (EI), SASU is an independent legal entity with limited liability and tax advantages.
2. Common Features of SAS and SASU
- Company Nature: SAS and SASU are both joint-stock companies, with less tight relationships between shareholders compared to partnerships.
- Establishment Procedures: Whether establishing SAS or SASU, similar legal procedures need to be followed, including drafting articles of association, depositing capital, and publishing establishment notices in legal gazettes.
- Shareholder Liability: In SAS and SASU, shareholder liability is limited to their contributions, protecting personal assets.
- Company Operations: SAS and SASU operate flexibly, allowing shareholders to make decisions as needed, but at least one CEO must be appointed to manage the company's daily operations.
- Taxation System: SAS and SASU have similarities in taxation, usually subject to corporate tax (IS), but can also opt for income tax (IR) under certain conditions.
3. Key Differences Between SAS and SASU
- Minimum Number of Shareholders: SAS requires at least two shareholders, while SASU only requires one shareholder. This means SASU might be a more suitable choice if you want to start a business alone.
- Decision-Making Process: In SAS, certain important decisions require collective decision-making and convening shareholder meetings, while in SASU, all decisions are made by the single shareholder without the need for shareholder meetings.
- Shareholder Agreements: SAS shareholders can sign shareholder agreements, specifying terms such as share transfers and company control, while SASU, due to having only one shareholder, usually doesn't require such agreements.
4. How to Convert from SASU to SAS
- If you initially chose the SASU form for entrepreneurship, as your business grows, you may want to introduce new partners or increase the company's flexibility. In this case, you can convert from SASU to SAS through capital increase or share transfer.
- The conversion process is relatively simple, requiring updating the company registration certificate (Kbis), possibly amending the articles of association, and publishing notices in legal gazettes.
5. Conclusion
- Choosing between SAS and SASU depends on your entrepreneurship plans and personal needs. If you want to start a business alone and enjoy higher flexibility, SASU might be a more suitable choice. If you plan to start a business with others or need to increase the company's flexibility, SAS would be more appropriate.
- Regardless of the chosen form, careful consideration of your business needs, tax situation, and future development plans is necessary to ensure selecting the most suitable company form.
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