capital, it must, within 2 financial years of the capital increase, reduce its capital to a minimum threshold set up. • Any special business or investment visa issues Investments and acquisitions by non- resident (individuals or legal entities) in France are unrestricted and only require (i) a declaration for statistical purposes, (ii) except in the case of transactions in sensitive areas for which specific investment-control rules apply and prior

shareholding non- professionals is limited (e.g., third party can hold a maximum of 25% of the share capital of biology laboratory). of Foreign investors may hold the majority of the share capital of an agricultural company only if they are in possession of an agricultural professional permit issued by the agricultural authority of the region where the farm is located. Foreign investors may not cumulatively hold more than 20% of the share capital of a media company.


authorization is mandatory. (i) Statistical declarations:


- Foreign investment which exceeds EUR 15 million and corresponds to the acquisition of at least 10% of the share capital or voting rights of a French company or real estate investments must be declared to the French central bank within 20 working days after the investment. (ii) Prior authorization in sensitive areas: Several sectors of activity are deemed to be sensitive because they affect public interests:

• Furthermore, prior authorization may be mandatory in restricted areas, as explained hereunder. Any capitalization obligations The net equity of a company having the form of a SA, SAS or SARL must be at least equal to half of the share capital. If any such company suffers losses causing its net asset value to fall below one half of its share capital, the shareholders must decide, within a four-month period following the approval of the accounts which revealed such loss, whether the company must be dissolved or not. If the shareholders decide to continue the company's operations, the company must increase its net asset value to at least one half of its share capital at the latest at the close of the second fiscal year following the fiscal year during which the situation has been acknowledged. If the company carries out a capital increase without complying with the rule of equity exceeding half the

activities even occasionally, in the exercise of the public authority; involved, activities which are likely to infringe public order, public security or national defence interests; activities carried out in the field of weapons research, production or trade of weapons; research development activities relating to cybersecurity, artificial intelligence; and





ILN Corporate Group – Establishing a Business Entity Series

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