CHAPTER I: Purpose

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Article L1521-1

French General Code of Local AuthoritiesIn force

Updated 8 Nov 2023

Municipalities, départements, regions and their groupings may, within the scope of the powers conferred on them by law, set up local semi-public companies which associate them with one or more private individuals and, where applicable, with other public individuals to carry out development or construction projects, to operate industrial or commercial public services, or for any other activity of general interest; where the purpose of local semi-public companies includes several activities, these must be complementary. In addition, local semi-public companies may carry out design, construction, upkeep or maintenance operations and, where applicable, the financing of hospital or medico-social facilities for the needs of a health establishment, a social or medico-social establishment or a health cooperation grouping.

A commune that is a shareholder in a local semi-public company whose corporate purpose falls within the scope of a competence that it has transferred in full to a public establishment for inter-municipal cooperation or that the law assigns to the Lyon metropolis may continue to participate in the capital of this company provided that it transfers to the public establishment for inter-municipal cooperation or to the Lyon metropolis more than two-thirds of the shares that it held prior to the transfer of competence.

The second paragraph is applicable to a grouping of local authorities that is a shareholder in a semi-public company.

Mariela Petrova

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Common Questions

Working with a corporate lawyer in France — Q&A

Any time a strategic decision changes how the company is owned, governed or contractually bound — incorporation, fundraising, M&A, restructuring, shareholder agreements, or major commercial contracts. Earlier engagement always costs less than later remediation.

A notary (notaire) is a public officer who authenticates specific deeds (mainly real-estate transfers and certain family-law acts). A corporate lawyer (avocat) advises on strategy, negotiates and drafts company documents, and represents you in disputes. The two roles complement rather than overlap.

Yes — most of our clients are foreign suppliers, investors or holding entities. We bridge the gap between French law and your home jurisdiction's expectations and deliver everything bilingually.

The SAS (Société par Actions Simplifiée) is the default choice for most international structures: flexible governance, single shareholder allowed, no minimum capital, and works cleanly with foreign holding entities. We assess SARL, SA, SCI on the merits when the situation calls for it.

Yes — communications with a French avocat are protected by the secret professionnel (Article 66-5 of the Law of 31 December 1971). This protection is broader than the common-law attorney-client privilege and applies to written and oral exchanges.

We work on fixed fees for clearly scoped engagements (incorporation, contract drafting, audits) and on monthly retainers for ongoing advisory. Hourly billing is the exception, not the default. You always know the cost before work starts.

Typical timeline is 2–3 weeks from KYC kick-off to RCS registration, assuming standard documentation. Holding-company structures, foreign-shareholder identification or in-kind contributions can extend this — we flag the gating items at the first meeting.

Absolutely. We routinely coordinate with your in-house counsel, expert-comptable or notaire — pragmatic collaboration is the norm, not the exception. We send them everything they need to do their part without duplicating work.

Mariela Petrova

Mariela Petrova

Avocate au Barreau de Paris

Toque #C2396

15+ Years In Corporate Practice

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Communications protected by professional secrecy — secret professionnel de l'avocat, Article 66-5 of the Law of 31 December 1971.

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