The 3 Types of Share Capital Contributions in France

In order to create a company in France, the associates or shareholders have to put a certain amount of properties at the disposal of the enterprise in order to constitute the share capital.

This deposit of properties is known as contributions (apports in French) and they are three main types: cash contributions, in-kind contributions, and industry contributions.

The Legal Announcement

A legal announcement is an advertisement that mentions the information of a company.

These legal announcements must appear in a journal authorised to publish legal announcements (known as JAL in France), and which must be distributed in the district of ​​the head office of the company (it can be a local, regional, or national journal).

The Individual Company

An individual company refers in France to a type of enterprise without a legal entity.

It means that it’s constituted by a single member or “natural entity”, who will be the only associate and the director of the individual enterprise. By no means can a third party manage an individual company.

The “K-bis” extract

The K-bis of a commercial company is its identity card.

It is, in fact, an extract from the commercial register issued by the registry of the Commercial Court. It is considered as the only official document attesting and proving the legal existence of a company.

The “K-bis” extract

The K-bis of a commercial company is its identity card.

It is, in fact, an extract from the commercial register issued by the registry of the Commercial Court. It is considered as the only official document attesting and proving the legal existence of a company.

The “K-bis” extract

The K-bis of a commercial company is its identity card.

It is, in fact, an extract from the commercial register issued by the registry of the Commercial Court. It is considered as the only official document attesting and proving the legal existence of a company.

The Business Recovery Procedure

The recovery procedure of a company with difficulties is a business restructuration process known in France as “redressement judiciaire”.

Unlike the procedure of safeguard, the company has effectively ceased its payments, but it still seems possible to retake the company and relaunch its activity. The procedure is indeed very similar to the safeguard one, and it also applies to any type of enterprise.

Simplified Liquidation of an Insolvent Company

The simplified process of liquidation of an insolvent enterprise applies to individual companies without real estate.

There are two types of “liquidation judiciaire simplifiée” (or simplified legal liquidation) in France. The eligible enterprises fall into either category according to their average revenues and the number of employees they have. These two types of simplified liquidation are known as compulsory and facultative.

The status "mise en sommeil"

If you would like to cease the economic activity of your French company temporarily, there’s a procedure known as “mise en sommeil”.

This action consists on pausing your activity with the aim of reactivating it in time. The period can last for a maximum of two years.