Société Anonyme

DEFINITION of 'Société Anonyme '

A French term for a public limited company, abbreviated S.A. A société anonyme is the equivalent of a corporation in the United States, a public limited company (plc) in the United Kingdom or an Aktiengesellschaft (AG) in Germany. This type of business structure establishes a company as a legal person that can own and transfer property, enter contracts and be held liable for crimes. One of its key benefits is that is limits the owner’s personal liability for the company’s actions.

BREAKING DOWN 'Société Anonyme '

The société anonyme is a popular business structure with equivalents in many other languages and countries. For example, in Spanish, it is called a sociedad anónima, in Italian, it is referred to as a società anonima and in Portuguese it is called a sociedade anônima. In all cases, a company designated S.A. protects its owners’ personal assets against claims by creditors, which makes many individuals more willing to start companies since it limits their risk. The S.A. structure also makes it easier to meet a growing business’s capital needs since numerous investors can contribute large or small amounts of money as shareholders if the company opts for public ownership. The S.A. is thus a key component of a robust capitalist economy.

An S.A. is subject to different tax regulations than a sole proprietorship or partnership, and, in the case of a public S.A., different accounting and auditing requirements. In addition, all S.A.s must meet certain basic legal requirements. To be valid, a société anonyme must have articles of incorporation, a board of directors and a unique name. Other regulatory requirements vary by country. In Belgium, for example, an S.A. must be funded with at least €61,500 (as of 2014) and have at least two partners. In Costa Rica, nonresidents can start an S.A. without a Costa Rican partner. There are typically fees, which vary by location, for completing the various legal steps for forming an S.A.

Well-known companies that are established as S.A.s include Nestle, Anheuser-Busch InBev and L’Oreal.

  1. Public-Private Partnerships

  2. Articles Of Partnership

    A document that formalizes an agreement between parties who want ...
  3. Public Limited Company - PLC

    The standard legal designation of a company which has offered ...
  4. Limited Partnership - LP

  5. Partnership

  6. Limited Liability Company - LLC

Related Articles
  1. Entrepreneurship

    Identifying And Managing Business Risks

  2. Entrepreneurship

    How To Create A Business Succession Plan

  3. Retirement

    Discover Master Limited Partnerships

    These unique investments provide significant tax advantages.
  4. Insurance

    Disability Insurance For Business Owners

    If you become injured and no longer able to work, would your business survive?
  5. Entrepreneurship

    Crisis Management Strategies For Business Owners

  6. Options & Futures

    Asset Protection For The Business Owner

    Could incorporating your business help protect it? Find out here.
  7. Entrepreneurship

    4 Steps To Creating A Stellar Business Plan

  8. Options & Futures

    Starting A Small Business In Tough Economic Times

  9. Entrepreneurship

    LLC Vs. Incorporation (Inc.): Which Should I Choose?

    Learn about the advantages of forming an LLC over a corporation, including ease of administration. Read about the advantages that a corporation may offer.
  10. Stock Analysis

    7 Trump Businesses You Didn't Know Existed


    In a word, yes. A limited liability company (LLC) is eligible to establish a simplified employee pension (SEP). Keep in ... Read Full Answer >>
  2. Can LLCs have employees?

  3. What are the requirements for being a Public Limited Company?

  4. What is a family Limited Liability Company (LLC)?

  5. What are the liabilities of a silent partner?

    Because of the nature of their interest in a business, silent partners have limited liability that extends only up to the ... Read Full Answer >>

Hot Definitions
  1. Harry Potter Stock Index

  2. Liquidation Margin

  3. Black Swan

  4. Inverted Yield Curve

  5. Socially Responsible Investment - SRI

Trading Center