Section VI: Special provisions applicable in the event of transfer, termination or death

Articles in this section · 8

201201 ter202202 quater202 ter202 ter A203204

Article 202 quater

French General Tax CodeIn force
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Updated 8 Nov 2023

I. - Notwithstanding the provisions of Article 202, where a taxpayer liable for tax under the conditions provided for in 1 of that Article becomes, in order to carry on his profession, a partner in a company mentioned in articles 8 and 8 ter or a société d'exercice libéral mentioned in article 2 of law no. 90-1258 of 31 December 1990 relating to the practice in the form of companies of liberal professions subject to legislative or regulatory status or whose title is protected, taxable profits may be determined by disregarding debts acquired within the meaning of the provisions of 2 and 2a of the article 38 and expenses incurred, in respect of the three months preceding the occurrence of the event which gives rise to the application of article 202, and which have not yet been recovered or paid during that same period, provided that they are recorded in the balance sheet of that company.

These provisions also apply, under the same conditions, in the case of transactions referred to in the first paragraph of I of article 151 octies A.

By way of derogation from I of article 202 ter, these same provisions apply when a company mentioned in articles 8 and 8 ter, carrying on a liberal profession, ceases to be subject to the regime provided for by these articles as a result of an option for the regime applicable to capital companies, exercised under the conditions provided for in 1 of article 239.

II. - Where the provisions of I apply, the receivables and payables referred to therein are taken into account in determining the taxable income of the company which collects or pays them, in respect of the financial year in progress on the first day of the month following the three-month period referred to in the first paragraph of that same I or in respect of the year in which they are collected or paid, where the company's income is determined in accordance with the rules provided for in article 93.

III. - The provisions of I and II apply upon joint election by the taxpayer referred to in I and the companies referred to in II.

IV. - Repealed

Mariela Petrova

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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

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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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