For the common French company forms SAS, SASU, SARL and EURL, founders generally choose the share-capital amount stated in the articles rather than meeting a high statutory minimum. But the amount subscribed and the cash actually paid at formation are not the same thing. For cash contributions, SARL/EURL founders must pay at least 20% at formation, while SAS/SASU founders must pay at least 50%; the balance can normally be called later within five years.
How much share capital do SAS, SASU, SARL and EURL legally need?
For these commonly used structures, the capital amount is flexible and is fixed in the constitutional documents. The practical question is therefore not only what is legally possible, but what is financially coherent for the planned activity.
A very low nominal capital may satisfy the company-law framework, but it may not match the real cash needs of a business that must fund stock, equipment, a lease deposit, suppliers, payroll or other launch costs. Founders should therefore choose an amount that fits the financing plan rather than treating the legal minimum as a commercial recommendation.
| Company form | Capital amount | Minimum cash paid at formation | Remaining cash contribution |
|---|---|---|---|
| SAS | Set in the articles | At least 50% | Normally within 5 years |
| SASU | Set in the articles | At least 50% | Normally within 5 years |
| SARL | Set in the articles | At least 20% | Normally within 5 years |
| EURL | Set in the articles | At least 20% | Normally within 5 years |
The table concerns cash contributions. Contributions in kind follow separate valuation and payment rules, and regulated activities can create additional financial requirements outside this general company-law framework.
What is the difference between subscribed capital and cash actually paid?
Subscribed capital is the capital the shareholders or partners commit to provide and that is stated in the corporate documentation. Paid-up capital is the part of that commitment that has actually been transferred or contributed to the company at a given time.
For a SARL or EURL, article L223-7 of the French Commercial Code requires cash contributions to be paid up by at least one fifth at formation. The manager can call the balance later, but no later than five years after registration. For the joint-stock framework used by SAS/SASU, article L225-3 requires at least half of cash shares to be paid at subscription, with the balance due within five years. Article L227-1 makes the compatible SA rules applicable to SAS.
Example: if founders choose EUR 20,000 of cash capital, the minimum initial cash payment is EUR 4,000 for a SARL/EURL and EUR 10,000 for a SAS/SASU. The unpaid balance remains an obligation to the company; it is not a discount on the capital written into the articles.
Where is the cash capital deposited?
The cash portion that must be paid at formation is deposited for the company being created before registration. The deposit produces supporting evidence for the incorporation file, and the funds remain blocked during formation until the company is registered and the release formalities are completed.
Founders should therefore coordinate the deposit process with the articles, shareholder subscriptions and filing timetable rather than leaving it until the final step.
Francosetup's company formation service can coordinate the formation sequence, including the corporate information needed before the capital and registration steps are completed.
Should founders choose the lowest possible capital?
Not automatically. Share capital is a legal and balance-sheet resource, but it also shows how the founders have financed the company at launch. The right amount depends on what the company must pay for before recurring revenue becomes reliable.
- Estimate the first months of operating costs and timing of customer receipts.
- Identify deposits, stock, equipment, licences or professional costs that must be paid before launch.
- Check whether a bank, landlord, marketplace, supplier or regulated activity expects a particular financial profile.
- Decide how much funding should be permanent equity and how much, if any, will use other documented financing.
- Keep the capital amount consistent across the articles, deposit certificate and registration file.
A low capital figure is therefore not a general recommendation. Conversely, putting every euro of the operating budget into share capital can also reduce flexibility. The financing plan should be designed around the actual business rather than a symbolic number.
Is share capital the same as the company's working cash?
No. Share capital describes the equity committed by shareholders or partners in exchange for shares or units. Working cash is the liquidity the company needs to pay its bills. After registration and release of the deposited funds, paid-in cash capital can help finance company expenses, but the two concepts are not interchangeable.
A company can also receive other financing, such as documented shareholder advances or external borrowing, depending on the circumstances. Those amounts do not automatically become share capital and should be recorded and governed correctly. This distinction matters when planning the opening balance sheet and ongoing bookkeeping. See the accounting service in France for the recurring accounting workstream after incorporation.
What happens with contributions in kind?
Capital can include assets rather than only cash. A contribution in kind can be equipment, a vehicle, intellectual property or another asset transferred to the company. The asset needs a supportable value because that value affects the capital and the shares or units received by the contributor.
French law generally requires in-kind contributions to be fully contributed when the corresponding shares or units are issued. Depending on the company form, the type and value of the assets, a commissaire aux apports (contribution auditor) may be required, although exemptions can apply in some situations. Founders should check the current conditions before relying on an exemption.
How should foreign founders plan the capital step?
For an international founder, capital should be decided after the company form and operating plan are understood but before the articles and bank deposit are finalised. The broader guide to setting up a company in France as a foreigner explains how the registered office, management, capital and registration file fit together.
- Choose the legal form and confirm the shareholders or partners.
- Estimate launch funding and first-month cash requirements.
- Set the capital amount and decide the mix of cash and in-kind contributions.
- Confirm how much cash must be paid at formation for that legal form.
- Prepare any valuation or contribution-auditor work required for in-kind assets.
- Align the articles, subscription records and capital-deposit documentation.
- Deposit the required cash and obtain the supporting certificate.
- Complete registration, then release and account for the funds in the company's books.
If an existing foreign group is deciding between a French entity and operating through the parent, review the French subsidiary versus branch guide first. A branch does not have separate share capital in the same way as a French subsidiary.
Common questions about French share capital
Do I have to pay all the capital before the company is registered?
Not for cash contributions in the common forms covered here. SARL/EURL require at least 20% of cash contributions at formation, while SAS/SASU require at least 50%. The remaining cash is normally payable within five years.
Can I choose a very small capital amount?
The common SAS/SASU and SARL/EURL forms allow flexible capital, but legal flexibility does not mean a token amount suits every business. The amount should be consistent with the company's funding needs and commercial circumstances.
Can the company spend the capital after registration?
Once the company is registered and the deposited cash is released to it, the money belongs to the company and can be used for legitimate company expenses. It should be recorded through the company's accounting, not treated as the founders' personal money.
Does a shareholder loan increase share capital?
No, not by itself. A shareholder advance and a capital contribution are different financing and accounting items. A formal capital increase is required if the parties want additional funding to become share capital.
Does every in-kind contribution need an auditor?
Not always. Exemptions exist in some company forms and situations, but the conditions depend on the asset values and structure. Check the current rule before the articles and filing are finalised.