Holding Company in SASU | Advantages and Assembly

Are you looking to form a holding company but still unsure of the legal form to choose? And if you choose SASU? It does not lack assets to manage your future operating company. However, the particular structure of the holding requires certain precautions. So, Create a Holding Company in SASU: Good or Bad Idea?

What is a holding company in SASU?

Although it is not actually a company, the choice of the legal form of your holding company is important: it is the one that will determine part of your structure’s operations and taxation. As a reminder, a holding company is a parent company that holds stakes in various subsidiaries.

A holding company in SASU is a holding company made up of a single partner, who may be a natural or legal person. Thus, a holding company in a SASU may have a company as its chairman. Depending on the orientation chosen, the holding company in SASU may be:

• Active, that is, it carries out an activity within its various subsidiaries. This may include counseling services, for example:
• Passive, or Pure: The holding company is limited to its natural corporate purpose, ie the acquisition of holdings in its daughter companies. The SASU is then the majority shareholder of the companies in which it invests.

What are the advantages of SASU in a holding company?

Choosing a one-person simplified joint stock company has several advantages for both the holding company, the daughter companies, and the sole shareholder.

customized taxation

Holding company in SASU allows you to avail partial or total exemption from IS (Income Tax). In addition, you can choose your tax regime:

• Parent-Daughter Rule: The shareholder gets the benefit of tax exemption on dividends up to 95%. Hence only 5% tax is levied on SASU Holding Company;
• Consolidation Arrangement: It is the holding company that pays taxes on the profits of its subsidiaries. Indeed, in this tax regime, the holding company centralizes and controls all profits of its daughter companies. This allows SASU Holding Company to reduce its tax base due to the possibility of balancing the losses and profits of its various subsidiaries.

Lastly, the sole shareholder of the SASU can avail partial or total exemption from wealth tax on the securities held. However, this tax advantage is possible only within the framework of a holding company. Enough to inspire the creation of a holding company at SASU!

easy financing

SASU Holding Company acts as an intermediary between the institutions and the sole shareholder. In fact, its status as a legal person often makes it easier to obtain a bank loan, which allows you to develop your own structure. And for a banking establishment, the holding company has the advantage of providing an increasingly broad structure as collateral: parent company + daughter companies.

centralized management

SASU Holding Company makes it possible to centralize a certain number of functions and services. Thus, by grouping them within the parent company, it is possible to make a huge savings on the support provided to the daughter companies.

The presence of a single partner also gives the latter the possibility to exercise control over its subsidiaries at any time, as it is its holding SASU that manages them.

Finally, any debt arising from some subsidiaries is offset by profits from others, thus balancing the holding company’s earnings balance. Therefore a part of the dividend can be used to pay off the debt of some daughter companies.

a flexible legal position

SASU is a legal form that brings a lot of flexibility to its sole partner, particularly in the drafting of its statutes. It is very well suited for the creation, development and management of a holding company. Moreover, it is easy to bring in new partners by converting your SASU to SAS, as your infrastructure evolves.

A holding company is not a legal form, but an organizational structure. Thus, to form a holding company, you must first form a company. It is he who will then be transformed into a holding company. Now it’s time to build SASU!

Create a SASU

A single-person simplified joint stock company is formed by filing a registration file with the registry of the commercial court on which you are dependent. To help you out, you can find in our article all the formalities to create a SASU in 4 simple steps.

In short, you need to collect the following documents and send them to the CFE (Business Formalization Center) or the Registry:

• statute, dated and signed;
• Form M0 SASU in duplicate, dated and signed;
• certificate of deposit of funds;
• Non-convict certificate and copy of identity document of sole shareholder and President;
• Certificate from JAL;
• Register of Beneficial Owners (RBE);
• the client List;
• If concerned: Copy of notice of appointment of Statutory Auditor.

Converting SASU into a Holding Company

Any business company can be converted into a holding company. For this, it is enough that its corporate purpose serves. Thus, you have 2 solutions to convert SASU to Holding Company:

• You form a holding company directly in SASU: It is then advisable to take care of the drafting of the corporate purpose of your holding company as soon as SASU becomes law. It must necessarily indicate the activities of your company, including the acquisition, holding and management of securities, shares or shares in companies created or to be formed.
• You already have a SASU which you want to convert into a holding company: You have to revise the corporate objective of your SASU here and add activity specific to the holding company, i.e. stake in the companies created or to be formed acquisition of.

Alone or together form SASU Holding Company?

Forming a SASU holding company takes a while and requires some thought, especially when drafting a corporate objective.

You can of course take care of writing down your SASU’s statutes and publication and creation formalities alone. This will take time, and will only cost you the cost of publishing and registering with the Registry.

However, don’t hesitate to come along with a legal professional or LegalTech! They provide you with a full range of consulting and support services to guide you on administrative, legal and tax aspects as you form your SASU holding company.

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