When should we incorporate?

Question

We are a small team of engineers and software developers based in Lyon, France. We plan to launch a startup based on an idea for a new SaaS product in the field of consumer insurance & finance. We now that we have to incorporate a company, but we would like to postpone this in the exploratory phase, where we develop and test prototypes and determine problems in the business plan and market fit. Is this a good idea? What do you usually tell startups about this?

or

Answers: 1 public & 0 private

F56b616a4f
Lawyer

Dear compatriots,
Given your field, your activities "Software-as-a-Service" (SaaS) and what is practiced in France with regard to applications accessed remotely through the Internet, I would tend to suggest the (classical) model of the "SAS" that is very flexible and responsive for IT services companies ("SSII" or "ESN"). You can take the particular example of the French company CSC Computer Sciences Holdings SAS, which belongs to CSC Group and specializes in the sector of investment funds and similar financial entities. The CSC Group is known to have focused all its development strategy around this trend "SaaS", and successfully holding company (located in Courbevoie I know well) offers similar activities to yours.
Moreover, the "SAS" company is relatively simple to construct and implement. This model go company allows a great flexibility of organization, operation and development, you can turn the company in the process, add partners (shareholders), a board… its governance obeys a very competitive legal and tax system.
The SAS is a legal person according to French corporate law, which means that it has an legal existence independent of its founders. It has a estate (patrimony) that is unique and thus separate him from that of his partners. Your personal assets (real estate, house…) are protected in case of company debts. The liability is reduced to the amount of the contributions of each founders which is very very important...
Don't hesitate to contact me should you need further details.
Your sincerely,
Simon

Recent questions