How to close a French (SAS) Business

[Helpneededfast]

We started a French business up to satisfy European orders, however after 12 months and at a cost of 23,000 euros and no sales. We have decided to close the French operation down.

Our French accountants who've charged us 1250/month for the past 12 months, told us on Friday 1 price to close the business (dissolve and liquidation of a business that has made no sales during its incorporation) and today have now confirmed another price of 2500 euros that is 500 euros higher. We have asked for justification and they just say, that is the price!

Anyone dealt with this before? As it seems the only parties winning are the accountants!

 

[Paul Kelly ICHYB]

First, I think people would really want to know why you opened an EU business for no sales/history!

Second, it looks like the French accountant may have taken advantage of the fact that you are a jolly foreigner!

Have you considered just working out how to close the business without an account or just walking away from it? Maybe speak to another French accountant or two to see how much they would charge to walk away?

 

[Helpneededfast]

First, I think people would really want to know why you opened an EU business for no sales/history!

Second, it looks like the French accountant may have taken advantage of the fact that you are a jolly foreigner!

Have you considered just working out how to close the business without an account or just walking away from it? Maybe speak to another French accountant or two to see how much they would charge to walk away?

Paul, my crystal ball wasn't working when I opened the French account, so couldn't predict no sales - if I had I wouldnt have opened the business account! However the decision was made 12 months on after no sales. Our main business does 235K per month selling the same products.

What you proposed is, what I have asking.

Thanks anyway.

 

[eteb3]

How good is your French?

Is the biz solvent?

 

[Helpneededfast]

How good is your French?

Is the biz solvent?

Thank you, my French isnt great and I think this could be the problem, take advantage...

We had to deposit 35K into the account, out of that 15K on accountancy bills and 506 euros for banking charges. 19,494 is the balance and we owe no one.

 

[Paul Kelly ICHYB]

Find someone in the UK who can deal in French regulation?

 

[UK Contractor Accountant]

Unlike UK Law the "Liquidator" can be one of the company Directors.

Its basically the same process as the Dissolution and Strike Off procedure here in The UK but with a bit more red tape added.

How to Dissolve and Liquidate a Solvent Company

The process by which a French company stops its economic activity and ultimately ceases to exist is called “dissolution-liquidation”.

nikolsen.com

 

[Mark T Jones]

Paul, my crystal ball wasn't working when I opened the French account, so couldn't predict no sales -

Not a dig - we've all made mistakes, but for others watching, good, paid research is a great substitute for a crystal ball....

 

[Paul Kelly ICHYB]

my crystal ball wasn't working when I opened the French account,

Not a dig - we've all made mistakes, but for others watching, good, paid research is a great substitute for a crystal ball....

No, it wasn't a dig and, with the UK sales you have, I would have thought that it could be reproduced in the EU, however, I would still have tested from the UK before committing to setting up a foreign operation.

Not knowing what the products you sell are, I would really want to know why you didn't sell anything!

 

[Helpneededfast]

Unlike UK Law the "Liquidator" can be one of the company Directors.

Its basically the same process as the Dissolution and Strike Off procedure here in The UK but with a bit more red tape added.

How to Dissolve and Liquidate a Solvent Company

The process by which a French company stops its economic activity and ultimately ceases to exist is called “dissolution-liquidation”.

nikolsen.com

thanks, will give them a go.