2024-02-16 16:04:05
What is the lifespan of a company?
As a legal entity, a company has a limited existence. Its lifespan must be fixed when drafting the statutes, when the company is created. This is part of the mandatory information set by French law upon registration. Society necessarily has a lifespan; it cannot be indeterminate.
The maximum lifespan of a company is set at 99 years. No society can go beyond this. However, a shorter duration can be entered when drafting the statutes. This duration is not final and may be extended.
How to extend the lifespan of a company?
The extension of the lifespan of a company corresponds to a modification of the statutes of the latter. Like any modification, it must take place within a very specific framework, defined by law.
The first step is consultation with the company’s partners. They must be gathered at least one year before the company’s maturity date. The decision must be taken according to the terms specific to each type of company. For example, in the case of an SARL it will be an extraordinary general meeting (EGM).
Once the report has been drawn up, it is now necessary to carry out the modification of the statutes. To do this, a legal announcement must be published in a newspaper authorized by the prefecture of the department of the company’s head office. The announcement may also be published directly on the internet via an equally authorized online press service. This formality must be completed within the month following the general meeting.
To formalize the modification of the lifespan of the company, a file must be sent to the competent CFE (business formalities center). This can, for example, be the commercial court registry in the case of a civil company or the CCI (chamber of commerce and industry) in the case of an individual company. You can find ici the competent CFE depending on your activity. Sending the file allows the modification to be registered with the RCS (trade and companies register). It must in particular include:
- A Cerfa M2 form,
- A copy of the updated statutes,
- A copy of the minutes,
- A certificate of publication of the legal announcement.
What to do if you forget to renew a company within the stipulated time?
Since July 21, 2019, a solution has been offered to companies which have not, within the allotted time, consulted the partners in order to extend the lifespan. The president of the commercial court may, if contacted by one of the partners within one year after the company expires, authorize regularization within three months. He then appoints a legal representative to consult the partners and formalize the request.
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