FREQUENTLY ASKED QUESTIONS/What difference between a person / a business as a CEO?/

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What is the difference between a person as a CEO and a business as a CEO?

In the case of a SAS, the director of the company is called the CEO. The CEO of the SAS can also be a company (i.e. “personne morale”) For example, if you already have a company and you wish to create a subsidiary or invest via the existing company, you can designate the first company as CEO of the new one.

Should you wish to do this, however, note that the investing CEO company must have a physical person as its physical representative. Your name will appear on the incorporation certificate of the new SAS as the legal representative of the investing company.

In the case of an SARL, the head of the company is called the manager. Unlike an SAS, the manager of the SARL must be a physical person.

Similarly, the head of an SCI is called a manager, but it is possible to have a business as manager.

When the company is formed, the choice between a physical or corporate head can be strategic.

For example, when the CEO of an SAS is a physical person, his/her remuneration is taxed on his income and he/she benefits from an allowance of 10% for professional fees. On the other hand, if the CEO is a business, its income is a taxable product.

Moreover, from a practical point-of-view, the designation of a corporate CEO in a SAS can be advantageous, as there will be no formality to carry out if the shareholders later wish to designate a physical person as CEO.

Read more:

The term of a corporate office

The number of shareholders in your company

The headquarters: what is it?

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