Acts entered into on behalf of a company in formation – case-law overturned
A company in formation lacks legal personality and previously needed strict formalities to validate contracts made before registration. In this case, a lease signed without these formalities was initially voided, but the Court of Cassation overturned the ruling. It decided that the contract’s validity should be based on the parties’ intent rather than formal requirements, changing prior case law.
Confiscation of property protected under a retention of ownership
A driver’s car bought with a retention of ownership clause was confiscated after a drunk driving conviction. The Court of Cassation ruled that the clause doesn’t prevent confiscation. However, the bank can reclaim the car or its value if the price is unpaid, with any excess value going to the State.
How to Set Up a Company in France: A Step-by-Step Guide
Setting up a company in France requires careful planning and adherence to legal procedures. First, choose a suitable business structure based on the size and type of your venture, then register your company name, and draft the necessary legal documents. After depositing the initial capital, you’ll need to register with the Trade and Companies Register (RCS), obtain any required licenses, and register for taxes and social security. Opening a business bank account and setting up proper accounting systems are also essential steps. For companies hiring employees, compliance with labor laws is crucial. With the right preparation and legal guidance, you can establish your business smoothly in France.