Company creation: choose the legal form of your company

The status ofsole trader allows you to carry out your business without creating a legal entity.

You can use this legal form if you want to be a craftsman, tradesman, industrialist or professional.

The status of individual entrepreneur does not require input because there is no concept of share capital for this company.

Scope of liability

As an individual entrepreneur, your personal wealth and your occupational heritage are separated. This means that you are responsible for the company's debts on your professional assets only.

Taxation of profits

As an individual entrepreneur, you are taxed directly under theIR: titleContent or on security option of the IS.

Social security system

As a sole trader, you are subject to the self-employed (self-employed) scheme.

You can use this social form if you want to be a craftsman, a trader, an industrialist, a professional or even a pharmacist.

Number of partners

1 partner only (natural or legal person)

Amount of contributions

Social capital is minimal €1.

20% cash contributions are mandatory at the time of the business, with the money to be paid out within 5 years.

Scope of liability

Your liability is limited to the amount of its contributions, unless you have committed mismanagement or have granted personal sureties.

Taxation of profits

You are, as a sole partner, taxed directly for income tax purposes. However, the EURL can opt for business tax.

Social security system

The social security system differs according to the functions:

• Asassociate, you are subject to the self-employed (self-employed) scheme.
• If you are single associate manager, you are subject to the self-employed (self-employed) scheme.
• If you are third-party manager, non-associate, your status is that of assimilated employee.

Tax system

As an officer, you are subject to income tax either in the BIC or NBC, or in the case of wages and salaries.

You can use this social form if you want to be a craftsman, tradesman, industrialist, or practice a liberal profession.

Number of partners

2 minimum and 100 maximum partners (natural or legal persons)

Amount of contributions

The amount of the share capital is freely determined by the members. It is fixed at €1.

20% of the amount of the cash contributions must be paid at the time of incorporation, the money must be paid within 5 years.

Scope of liability

The liability of members shall be limited to the amount of their contributions, unless they have committed mismanagement or granted personal sureties.

Taxation of profits

Profits are subject to business tax.

However, it is possible to opt for income tax in the case of the family SARL.

An option for IR is also possible, under certain conditions, for SARLs created less than 5 years ago.

To opt for IR, the SARL must comply with the following four conditions:

• To carry on primarily an industrial, commercial, craft, agricultural or professional activity, excluding the management of one's own movable or immovable property
• Being held at 50%at least by natural persons and 34% at least by the leadership
• Not to be quoted on a regulated market
• Employ fewer than 50 employees and have an annual turnover or balance sheet total of less than €10 million

Social security system

If the SARL is subject to the IS, the manager minority or egalitarian is considered to be an employed person.

If the SARL is subject to the IS, the manager majority is self-employed (self-employed).

Members are subject to the employees' regime (if they have an employment contract).

Tax system

The manager is subject to salaries and wages (except business option for IR).

You can use this social form if you want to be a craftsman, a trader, an industrialist, or a professional.

Number of partners

1 single member: natural person or legal person

Amount of contributions

No minimum is imposed. Cash contributions shall be paid at least half of their amount when the business is set up.

Scope of liability

The contractor's liability is limited to the amount of his contributions, except exceptions (mismanagement for example).

Taxation of profits

Profits are taxed on business tax (SI) or, on option, on the personal business plan for up to 5 fiscal years.

Social security system

Managers are affiliated to the general social security scheme, whether they are associated or not. If there is no remuneration, there is no affiliation.

Tax system

The President is subject to the salary and wages regime unless the business opts for the IR.

You can use this social form if you want to be a craftsman, tradesman, industrialist, or practice a liberal profession.

Number of partners

1 minimum partner, no maximum (natural or legal person).

Amount of contributions

Capital is freely set by shareholders.

50% cash contributions are mandatory at the time of the company's incorporation, with the money to be paid within 5 years.

Scope of liability

The liability of members shall be limited to the amount of their contributions.

Taxation of profits

Profits are subject to business tax.

An option for IR is possible when the business was set up less than 5 years ago.

In order to opt for IR, an SAS must meet the following conditions:

• To carry out primarily an industrial, commercial, craft, agricultural or professional activity (except for the management of one's own movable or immovable property)
• At least 50% owned by natural persons and at least 34% by managers
• Not to be quoted on a regulated market
• Employ fewer than 50 employees and have an annual turnover or balance sheet total of less than EUR 10 million

Social security system

If the business is subject to business tax, the social security scheme is the scheme for employees (if they have an employment contract).

The president is considered a salaried employee.

Tax system

The President is subject to salaries and wages (unless the business for IR is optional).

It can be run by a board of directors with a CEO or by a supervisory board with an executive board.

You can use this social form if you want to be a craftsman, tradesman, industrialist, or practice a liberal profession.

Number of partners

The minimum number of partners is as follows:

• 2 partners in unlisted businesses,
• 7 partners in listed businesses (no maximum).

Amount of contributions

The amount of contributions must be higher when the business is created €37,000 minimum.

50% cash contributions must be paid when the company is established, with the money to be paid within 5 years.

Scope of liability

The liability of members shall be limited to the amount of their contributions.

Taxation of profits

Profits are subject to business tax.

An option for IR is possible when the business was set up less than 5 years ago.

In order to opt for IR, an SA must meet the following 4 conditions:

• To carry out primarily an industrial, commercial, craft, agricultural or professional activity (except for the management of one's own movable or immovable property)
• At least 50% owned by natural persons and at least 34% by managers
• Not to be quoted on a regulated market
• Employ fewer than 50 employees and have an annual turnover or balance sheet total of less than EUR 10 million

Social security system

The president is considered a salaried employee.

The other members of the board of directors are not paid for their managerial duties and are therefore not covered by any social security scheme.

Tax system

The Chairman of the Board of Directors is subject to the Wages and Salaries Statute, unless the business has opted for income tax.

You can use this social form if you want to be a craftsman, tradesman, industrialist, professional or pharmacist.

Number of partners

minimum 2 members (natural or legal persons)

Amount of contributions

The amount of the share capital is freely determined by the members.

Scope of liability

The partners are traders and are jointly and severally liable for the debts of the business. They are liable indefinitely for all their personal property.

Taxation of profits

There is no taxation at the business level.

Each partner is personally taxed on his or her share of profits in income tax (in the category of industrial and commercial profits - BIC). The business can opt for business tax.

Social security system

Members are subject to the self-employed (self-employed) scheme.

You can use this social form if you want to be a craftsman, a trader, an industrialist, or a professional.

Number of partners

The minimum number of partners is 4:1 general partner and 3 sponsors.

Amount of contributions

The minimum share capital is €37,000 or €225,000 in the case of an offer of securities to the public.

At the creation of the FCC, at least 50% of the cash contributions (money) must be paid on the day the company is incorporated. The remainder will be paid within 5 years.

Scope of liability

• The general partners are jointly and severally liable indefinitely for the debts of the business.
• Sponsors are liable to the extent of their contributions.

Taxation of profits

The profits of the business are subject to SI.

Social security system

The manager is subject to the status of a self-employed person.

If the manager is a member of a FAS, he or she is considered to be self-employed.

If the manager is a non-partner and is linked to the SCA by an employment contract, he is considered to be a self-employed person.

The limited partner is not paid and is therefore not affiliated to any social plan.

Tax system

The general partner or third party manager of the limited partnership business is taxed on income tax in the salary and wages category.