The Pros and Cons of the SAS Corporate Structure

Whether you are planning to launch a new business or already operate a SAS, you may find it beneficial to weigh the advantages and disadvantages of this corporate structure to prepare for any future developments. The simplified joint-stock company (which can be a single-shareholder entity) is renowned for providing entrepreneurs with significant flexibility when drafting their articles of association.

What are the advantages of a SAS?

With a SAS, the advantages and disadvantages are numerous. Incorporating a company results in the creation of an autonomous legal entity, which possesses its own current account and legal personality under the Commercial Code.

Opening a bank account is easier with a simplified joint-stock company (SAS), as an SAS or SASU is considered a more established commercial entity than a simple freelancer operating under auto-entrepreneur or EIRL status.

The disadvantages of a SAS

Among the disadvantages of a SAS include the imposition of formalities that can sometimes be time-consuming. Drafting the bylaws, managing contributions in kind and in cash, appointing a contribution auditor, defining the corporate purpose, and handling the manager’s enrollment in the general social security scheme are all drawbacks shared with other types of companies.

Furthermore, while a SAS offers significant flexibility in terms of corporate management, it must imperatively be registered with the Trade and Companies Register (RCS) upon payment of registration fees. To achieve this, the founder must file a Cerfa form along with the articles of association and supporting documents with the clerk of the commercial court, with the assistance of the Business Formalities Center (CFE) if necessary. Subsequently, a notice of incorporation must be published in a legal notices journal.
For more information on the advantages and disadvantages of a SAS, click here.

Ensuring the proper management of your SAS

The SAS (simplified joint-stock company) structure offers greater flexibility than that of a public limited company (SA), particularly when operating as a single-member SAS, where there is only one shareholder. Appointing a statutory auditor can help streamline accounting processes and provide a clearer understanding of the applicable tax regime, specifically corporate income tax.

Once the buffer zone has been established, the manager can scale the structure legal freely, according to the direction they deem appropriate.
Social security status for SAS executives

The President of a SAS benefits from a unique social security status. They are classified as neither self-employed nor an employee. Unlike an SARL, a SAS allows its President, under certain conditions, to receive compensation for the corporate mandate they perform for the company. While they remain covered under the general social security scheme, they do not benefit from pension contribution benefits.