Do you want to open a restaurant but don't know which legal structure to choose? Here we present the different options available to you so that this step is no longer a source of stress!
The legal aspect of setting up a business rests on four fundamental decisions:
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The legal form
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The tax regime (income tax as a natural person, or corporate tax as a legal entity).
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The social security system (employee of your company to be affiliated with social security or self-employed worker who then depends on the social security system for the self-employed).
- The liability of the manager(s) (unlimited in the case of a sole proprietorship, or limited for companies and EIRLs).
Choosing your legal status
This step truly brings your project to life. There are many legal structures available. To choose the right one, it's essential to plan ahead and consider the long-term growth of your restaurant. The tax implications, which vary depending on the chosen legal structure, must also be assessed.
To get more information on this subject and make the right choice, it is advisable to consult a legal expert specializing in this type of issue.
Three legal statuses are generally preferred by people who embark on opening a restaurant:
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The SARL (limited liability company): this is the preferred business structure for restaurant owners. It requires a minimum of two partners. The company is a legal entity. In the event of bankruptcy, only the capital of the SARL can be claimed. The restaurant owner's personal assets cannot be seized (except in cases of serious misconduct). The company's share capital is made up of contributions from the various partners. A general meeting must be held annually among them.
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The EURL (single-member limited liability company): this is a SARL with the same characteristics except that, as its name indicates, there is only one partner.
- Sole proprietorship : the restaurant owner runs their business alone; it is not considered a company. The entrepreneur's personal assets are considered one and the same as their business assets. In the event of bankruptcy, their personal assets can therefore be seized. The profits generated by the restaurant are part of the owner's income and are subject to income tax.
There are two other types of legal status but these are less frequently chosen: These are the SA (public limited company) and the SAS (simplified joint-stock company) because in general these legal statuses are reserved for very large projects.
The formalities for setting up a company
The restaurant owner must register with the trade and companies register to operate their restaurant. Depending on the legal structure chosen, different formalities must be completed:
- Register your restaurant with the RCS (Registre du Commerce et des Sociétés).
- Register your business creation with your CFE (Business Formalities Centre). This organization registers companies and forwards the necessary information to the relevant government departments.
- Finally, it is registration with the RNE (National Business Directory) which ensures your registration with the URSSAF (among others).
- Following this, the Commercial Court Registry registers the activity and the entrepreneur receives their famous "K-bis extract", which officially marks the start of the business activity.
