SHAREHOLDER CURRENT ACCOUNT - LE COMPTE COURANT d’ASSOCIE

in French companies, what are shareholder current account?

These are advances of funds, known as shareholder current account, made by the shareholders of a company.

They can be used for a number of purposes: as part of a policy to finance the creation or development of a business, or as temporary assistance to make up for cash shortages and pay bills.

French Tax treatment

The sums made available may give rise to the payment of interest to the partners.

The current account interest paid to the shareholder is deductible from the company's taxable profits. 

The interest rate may not exceed the usury rate published by the Banque de France.

Our advice

Carefully monitor your company's cash flow requirements to adjust the contributions to the current account.

Any interest received must be declared on your tax return.

The operating rules are not the same for natural persons and legal entities.

You should consult a lawyer specialising in business law to help you set up this type of current account.