Two statutes for two visions of the company
The choice between SAS or SARL is not always simple, since the two legal forms may seem close. However, behind their common points, they embody two very different approaches for entrepreneurship.
SARL (Limited Liability Company) is a legal form well supervised by law, designed to offer a rigid but safe framework. It is the privileged form of family projects or companies on human scale, where stability and simplicity of management are priorities. It is perfectly adequate for partners who want a standardized operation and those who first launched into the entrepreneurship and who do not want to bother with complex options when writing the statutes.
The SAS (joint simplified company -stock), on the other hand, is very popular for its flexibility. Its main asset lies in its ability to adapt. In other words, the members themselves define the operational rules in the statutes. Therefore, SAS is an ideal state for entrepreneurs who want to create a custom framework, for new companies or for projects in search of innovation or fundraising.
Very different social and operation regime
SARL and SAS have significant differences in terms of the operational and social regime of the manager.
As stated above, in a SARL, the framework is strictly defined by law. The rules of governance are standardized, and the majority manager is affiliated with the regime of self -employed workers (TNS), which imply lower social contributions, but a more limited social protection.
On the other hand, SAS offers great legal freedom: partners can organize governance as they seem better, appointing a president and possibly other management agencies, such as a managing director. The president of SAS is an assimilated employee, who benefits from the general social security regime, with more extensive coverage, but more important social positions.
With respect to taxes, SANL and SAS are subject by default to the corporate tax (IS), with the possibility of a temporary option for Income Tax (IR) under certain conditions.
How to choose between SARL and SAS?
To choose between SARL and SAS, it is important not to limit yourself to the nature of the project. Other criteria must come into play, such as the desired degree of flexibility in the management, the manager’s social regime or the prospects for the evolution of the company.
SARL, with its strict legal framework, is particularly suitable for entrepreneurs looking for a simple structure to administer, to moderate social costs, without having to write complex statutes. It is also interesting for those who do not predict, in the short term, open their capital or bring new partners.
SAS, on the other hand, is essential since we want to anticipate fundraising, organize the governance made or benefit from better social protection as a manager. More flexible, but also more demanding, requires rigorous support of creation.
Ultimately, the correct choice is based on a clear vision of the trajectory that you want to give your business and arbitration between safety, flexibility and growth ambitions.
This content was carried out in association with legalstart. The BFM business writing did not participate in the realization of this content.
Source: BFM TV
