FRANCE Law and Practice Contributed by: Antoine Mercier, Myriam Mejdoubi and Gabriel Dalarun, DLA Piper France LLP
• have sufficient financial means to conduct its business and meet its liabilities. The management company is assisted by a supervisory board comprising at least seven shareholders, who are appointed at a sharehold - ers’ meeting. 5.6 Annual Entity Maintenance and Accounting Compliance Costs The annual entity maintenance and accounting compliance costs for each entity are as follows: • SCI: EUR12,000 plus the cost of statutory auditors (EUR10,000 to EUR20,000), if appli - cable; the appointment of an auditor is man - datory for an SCI of a certain size that has an economic activity, when two of the following three thresholds relating to capital, turnover and the number of employees are exceeded: (a) the total value of the assets on the bal- ance sheet is EUR1,550 million or more; (b) the turnover (exclusive of tax) is EUR3,100 million or more; and/or (c) the average number of employees is 50 or more; • SNC: EUR12,000 plus the cost of statutory auditors (EUR10,000 to EUR20,000), if appli - cable; • SARL: EUR12,000 plus the cost of statu - tory auditors (EUR10,000 to EUR20,000), if applicable; • SA: EUR20,000 plus the cost of statutory auditors (EUR20,000 to EUR25,000), if appli - cable; • SAS: EUR20,000 plus the cost of statutory auditors (EUR20,000 to EUR25,000), if appli - cable; • SCPI: EUR12,000 plus the cost of internal auditors (EUR10,000 to EUR20,000); and
• SIIC: EUR20,000 plus the cost of statutory auditors (EUR20,000 to EUR25,000). Mandatory Appointment of an Auditor For the SNC, SARL, SA and SAS, the appoint - ment of an auditor is mandatory when two of the following three thresholds relating to capi - tal, turnover and the number of employees are exceeded: • the total value of the assets on the balance sheet is EUR4 million or more; • the turnover (exclusive of tax) is EUR8 million or more; and/or • the average number of employees is 50 or more. 6. Commercial Leases 6.1 Types of Arrangements Allowing the Use of Real Estate for a Limited Period of Time Commercial Leases Commercial leases are granted for a minimum term of nine years and are subject to the manda - tory legal regime laid down in the French Com - mercial Code. Subject to specific conditions, a tenant has the right to terminate the lease at the end of each three-year period and also has the right to renew the lease. Overriding Leases Overriding leases (or short-term leases) have a duration of up to three years. The tenant gives up the protection of the mandatory regime appli - cable to commercial leases. Any renewal of the lease must be on the terms of a normal com - mercial lease.
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