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Create Commercial Partnership in France

Create Commercial Partnership in France

One of the most common trends for businessmen is to create a commercial partnership in France. In this type of business structure, there are at least two parties involved in the partnership which contribute to capital in cash, in kind or services, and are considered as merchants. When businessmen set up a company in France as a commercial partnership, their liabilities will be unlimited. This means that they will be liable for all the debts of the partnership beyond their actual contributions. The partnership shall be known through its business name and must be registered with the Registry of Commercial Company in France. Before starting this type of company, it is recommended to know the basic facts about it.


Capital for partnership in France


There is no minimum capital requirement to create a commercial partnership. When a partner pledges to contribute in cash, interest will be imposed thereon from the time the cash has to be given until it is completely paid. If contribution is to be made in kind, its value must be evaluated. For service contributions, there must be an account for all earnings gained from its performance.


Legal personality


Once businessmen engage into the process of company formation in France for a commercial partnership, they must have it registered. The registration must be made at the Registry of Commercial Company, the entity in charge with keeping records of commercial partnerships in France. These have a distinct and separate legal personality from that of the partners. This means that the partnership will be known by its registered name and all transactions will be entered on its behalf.


Management of partnerships in France


For company incorporation in France, the articles of association provide for the management role of all the partners. If it does not name a specific partner, then all partners are considered as managers. This means that all partners are able to make decisions which bind the partnership and can sign documents on its behalf.

The partners can also appoint a manager who does not necessarily have to be part of the partnership, as long as such act is allowed under the articles of association. The manager of your French commercial partnership also does not have to be an individual. It can also be another business entity.

Are you interested in collaborating with our accountants in France? Our specialists can tell you more about the procedures involved in accounting. Thus, you can get an idea of ​​what payroll means and how it can be put into practice by a specialist in the field, bookkeeping, audits, preparation of annual financial statements, debt monitoring, and more. We can also help you with registration for the payment of taxes, so don’t hesitate to contact us when you decide on a business in France.


For more information on how to set up a company in France as a commercial partnership, just get in touch with us. We will guide you accordingly.