How do I create a business?

In choosing the legal form of the business, several factors must be taken into account, including the number of members, the amount of share capital or the extent of the members' liability.

At the time of the creation of the company, it is necessary to appoint it. It's called corporate name or the corporate name.

It allows the business to be identified as a legal person. Indeed, the business has its own legal personality, different from that of its founder: it is said that it is a legal person.

The name of the company often refers to the activity carried out.

The ownership of this name is acquired at the time of registration of the business.

The registered office is company address. All documents relating to the business' activity are sent there.

This address must appear on commercial documents (quotes, invoices in particular).

This is the location of the actual direction of the business. Thus, it may be different from the place of exploitation or production.

The location of the registered office is laid down in the statutes at the time of the establishment of the business but may be moved during the life of the business. Without domiciliation of company, registration of the business is not possible.

Any change of address shall be considered as a transfer of registered office. Thus, it must be declared at the companies' formalities window.

Company Formalities Window

When a business is created, it is important to appoint one or more officers to manage the business.

This appointment may be made at the time of drawing up the statutes or in a separate act before the statutes are drawn up.

The director will have a different name and different powers depending on the form of company that is created.

If the business exercises regulated activity (e.g. restaurant, real estate agency, hairdresser), it is subject to certain prior formalities.

For example, it is an application for authorization from the City Hall of the city where the establishment is located or an application for authorization.

Once the head office of the business is determined, it is important to communicate this address to the post office closest to her so she can get her mail.

The company's share capital is composed of cash contributions by the shareholders or members of the business.

The value of property owned by the business, such as goodwill, buildings, trademarks, are also taken into account.

There are 3 types of intake:

• Cash (i.e. money)
• Contributions in kind (buildings, machinery, etc.)
• Industrial contributions (know-how, experience, relationships that a person puts at the service of business)

Only contributions in cash and in kind constitute the share capital of the business.

In the case of contributions in kind, the creation of the business requires the intervention of a commissioner for contributions, whose role is to evaluate the assets contributed to the capital of the business.

The deposit of share capital must be made when a company is formed.

This deposit is generally carried out on a open business bank account for the activity of the business.

One of the essential steps when creating your company is the drawing up of the statutes. They are used to set the rules for the operation of the business.

This step takes place between the determination of the amount of the share capital and the deposit of the share capital.

It is when the statutes are signed that the business is formed.

Any business that is registered in SCR: titleContent, with the exception of companies listed on a stock exchange, must make a beneficial ownership declaration (EBD).

One beneficial owner is a person who has more than 25% capital, or more than 25% the voting rights of the business.

The DBE is used to identify the natural person who controls the business.

The DBE must be transmitted via the company formalities window:

Company Formalities Window

Before registration, you have to publish a notice of constitution business (or creation notice).

This publication must be made in a legal listing support (SHAL or JAL)

The cost of publishing depends on the type of business that is being created.

You have to ask for a certificate of publication, issued by the SHAL, then forward it to the company formalities office at the time of registration.

You have to to declare the existence of the business. This statement is also called registration.

After registration, the following identifiers shall be issued:

• 2 unique identification numbers:
  
  • The Siren identifies the business. It is used in relations with administrations, clients, etc.
  • The Siret identify the establishment where the activity is carried out.
• One EPA activity code (main activity carried out)

Once the business is registered, it is important to obtain a number of accounting, employee or security records.

These registers are mostly mandatory and depend on the type and size of the company that has been set up.

Depending on the activity pursued by the company, it may be subject to the obligation to to take out certain insurance.

This is also the case if it hires employees or if it owns vehicles.

Even if the business is not obliged to insure, taking insurance is strongly advised and can be useful: for example, insuring the property of the business against water damage, fires.