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Companies within the framework of the European Union

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  1. Presentation of the Credit Agricole
    1. History
    2. Economic and competitive environment
  2. Analysis of credit management
    1. The analysis of credit risks
    2. The decisions to grant credit
  3. Summary and Recommendations

French Capital companies limit the financial risk to the amount contributed. The partnership rules were eased considerably with the creation of the joint stock company (SAS) which enjoys considerable freedom with the statutory abolition of the minimum capital for LLCs or the limited liability company. The main advantages are its simplicity of formation and operation. The members may be individuals or legal entities, and may range from 2 to 100. It is also possible to create an LLC with only one partner (EURL). There is no minimum capital and the partners' liability is limited to the contributions, except in cases of civil or criminal liability. The minimum capital is 37,000 euros, and the initial public offering is permitted if the capital exceeds 225,000 euros. The members must be at least seven in number. Partners' liability is limited to the contributions, except in cases of civil or criminal liability. The transfer of shares is free (unless mentioned in the approval clause), and the auditor is required.

The minimum number of partners is 1 (in the case of a one-man SAS), it can be a person or entity, and only certain decisions are made at general meetings. The minimum capital is also 37,000 of euros, but the initial public offering is prohibited. Regarding the liability of partners, the transfer of shares, and the presence of the auditor, the rules are the same as for SA.

The Partnership for Action has its main asset in that it is structured to a high level of delegation, and that it forms a kind of "anti - takeover." The minimum capital is again upto 37,000 euros and the minimum is a general partner is three sponsors. The liability of general partners is integral and is indefinite, while the limited partners is limited to contributions.

Other forms of structures may also be of interest. These are essentially partnerships (SNC), civil societies, and economic interest groups (GIE). They are less used because they provide a greater responsibility of partners in the event of financial difficulties. However, the absence of minimum share capital, the flexibility of operation and the fiscal transparency of these structures gives them an undeniable appeal as a subsidiary. The joint venture is used in some areas, as it is a very simple structure to form (no registration with the RCS) and discreet (no publicity measures).

Most legal forms in Dutch law have many features in common with French law. But it is also possible to adopt a legal form of another country of the European Economic Area, such as the Limited English or French SA.

The legal forms do not require minimum capital and the cost of registration of trade are lower than those of a company with legal personality.
The sole corporation is the most common legal form. It does not require any formalities other than the registration of the trade. The founder is also the owner: the business is run entirely by a single individual who has complete control and is responsible for all actions and debts of the case. Thus there is no distinction between personal property of the contractor and property of the company.

Tags: European Union- countries within the framework of the EU; rules for joint stock companies; partnership rules

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