A SASU is one of the main legal forms chosen by entrepreneurs who wish to create their own businesses alone.
A SASU, which can be roughly translated as Single-Associate Simplified Joint-Stock Company, is one of the two types of companies composed of a single associate. In the case of a SASU, such associate may be a natural or legal entity. This legal form, together with the SAS (which is the same as the SASU, differing in the size and the number of associates) is unique as it only exists in France as a result of a hybrid between French and Common law.
In a SASU, the rules that govern the SAS are often applicable. These rules are, for example, 1 euro of minimum capital, freedom of operation and transmission of shares, financial responsibility limited to the contribution made, etc. Nevertheless, a SASU enjoys a greater flexibility because of the presence of only a single associate.
It’s important to note that the SASU can be used to carry out a commercial, artisanal, agricultural or liberal activity, but it is not authorized to use this legal form in the case of legal, judicial and health related fields.
Characteristics of the SASU
As mentioned above, a SASU consists of a single associate (natural or legal entity). The responsibility of the associate is limited according to the contributions he has made to the SASU.
Moreover, the single associate freely determines in the statutes the rules of organization of the SASU as well as the director, known in this case as "president". The president of the company must be mentioned in the statutes because he will be the legal representative of the SASU. He may be a natural or a legal entity, unlike in an EURL, where only a natural person is allowed to manage the company, and he is responsible for the business.
A SASU is most often subject to the corporate tax (IS in French). However, it’s also good to know that there’s an option to be subject to the income tax (IR) instead (as in an individual enterprise and an EURL), if such is the choice of the president. The conditions are the following:
- Have a maximum of five years of existence at the time of application.
- Carry out a commercial, artisanal, agricultural or liberal activity, besides the exceptions mentioned above.
- Have a profit (or total balance sheet) of less than 10 million euros.
- Have less than 50 employees.
- Not being in the stock-market.
A SASU is fairly close to the SAS in its organisation, and therefore, it is quite possible to switch from one to the other without any change in the company statutes.
The documents to provide to create a SASU
To create a SASU, it is necessary to register a complete file in the enterprise formalities centre (known as CFE). The file must include the following documents:
- The copy of the statutes of the SASU dated and signed by the single associate.
- A copy of the address of the head office, which can be obtained by means of a domiciliation contract, a lease contract…
- A copy of the notice of creation of the SASU in a journal of legal announcements (known in France as JAL).
- A dully completed 'M0 form' signed by the single associate.
- A bank statement proving the capital deposit.
- A declaration of non-conviction in the case of the president designed.
- A copy of the identity card of the single associate and of the president if they aren’t the same person.
- The fee for the registration in the Commercial Court.
The dossier of constitution of the SASU must be deposited in the corresponding CFE, according to the nature of the company, by the founder (single-associate) himself or any person who has been given the pertinent power to do it. The dossier is then examined in a few days, and it must be complete in order to allow the registration of the company. Providing the complete dossier to the Registry of Commerce and Companies (abbreviated as RCS in French) leads to obtaining the K-bis extract for the company. In the case of a SASU, obtaining the K-bis to prove that the company is operating legally is not the sole purpose. Without the K-bis extract, the constitution capital of the SASU remains blocked and it’s not liberated until the extract is provided.