SNC (General Partnership): Definition, Status and Taxation in 2026

Karim and Sophie are two freelance developers. They have been billing clients together for three years on the same projects, but each one declares income separately. Their accountant suggested a status they had not heard of: the société en nom collectif.

A société en nom collectif (SNC) is a French commercial company formed by at least two partners who all hold trader status and are personally, jointly and severally liable for the company's debts, with no cap. It is simple to set up, but it leaves every partner exposed to the others' mistakes.

What is an SNC and how does it work?

An SNC works as a partnership where the partners themselves run the business, take on personal liability, and split profits according to the bylaws. Unlike an EURL or a SASU, there is no legal wall between the company's assets and the partners' own assets. Every partner holds trader status, which brings specific obligations and can clash with certain regulated professions.

A manager, who can be a partner or an outside appointee, runs daily operations. Unless the bylaws say otherwise, any partner can commit the SNC with third parties. That flexibility appeals to small teams who want to move fast without a shareholders meeting for every decision.

Who can set up an SNC and what are the steps?

Setting up an SNC takes at least two partners, no minimum share capital, and registration with the French trade and companies register. The bylaws fix how shares are split, the manager's powers, and the rules for transferring shares, which usually need every partner's unanimous consent.

In practice: draft the bylaws, deposit the share capital (free to set, even at 1 euro), publish a notice in a legal gazette, then file the application with the INPI's one stop shop. The official registration document, the Kbis, usually arrives within a few days.

Criteria	SNC	EURL	SASU
Number of partners	2 minimum	1	1
Liability	Unlimited and joint	Limited to contributions	Limited to contributions
Minimum capital	Free amount	Free amount	Free amount
Default tax regime	Income tax	Income tax (or corporate tax by election)	Corporate tax
Manager's status	Trader, self-employed	Manager, self-employed	Treated as an employee

What are the pros and cons of an SNC?

The SNC's main strength is its flexible structure and the absence of a minimum capital requirement, but its biggest downside is the unlimited, joint liability each partner carries on personal assets. An unpaid creditor can chase a single partner for the entire debt, who then has to seek repayment from the others.

This status rarely reassures investors or banks, since partners' personal commitment offers no asset protection, and most lenders will still ask for a personal guarantee anyway. It suits professionals who know each other well and share a long term project more than it suits strangers testing a quick venture: think a family firm, a craft business run by relatives, or a shop taken over between close partners who have worked together for years.

How is an SNC taxed and what social contributions apply?

By default, an SNC falls under income tax: each partner reports their share of profit under the category matching the activity, even when the money stays in the company and is not paid out. Partners can elect for corporate tax instead, which changes how pay and dividends work.

On the social side, managing partners fall under the self employed regime and pay contributions to URSSAF, typically between 30% and 45% of income depending on the activity. A non managing partner who draws no pay for their role is not automatically subject to the same contributions, so this is worth checking with an accountant before setting up, ideally before the bylaws are even signed.

SNC, EURL, SASU, or wage portage: which status fits a freelancer?

A freelancer working alone rarely benefits from an SNC, since it is built for projects run by at least two partners willing to share unlimited liability. For a one person activity, three options come up far more often: the EURL, the SASU, or wage portage.

Wage portage lets you bill clients while keeping employee status, with no company to set up and no personal assets at risk. It is a real alternative to the SNC for anyone who wants to test a multi person activity without joint liability: each ported consultant keeps their own wage portage company as the employer, and can check their net pay with the wage portage salary simulator before deciding.

According to INSEE (Sirene register, 2026 data), SNCs make up less than 1% of new company registrations in France each year, far behind the SASU and the EURL. That figure confirms the SNC stays a niche choice, reserved for specific situations rather than a default option.

Frequently Asked Questions

What are the advantages of a société en nom collectif?

An SNC offers wide freedom in drafting the bylaws, no minimum capital, and smooth management between partners who already know each other. It suits family projects or takeovers between relatives who want to avoid the heavier formalities of a SASU.

What is the difference between an SNC and an SARL?

In an SARL, partner liability is capped at their contributions: they only risk the money invested. In an SNC, each partner is personally, jointly and severally liable for the company's debts, which changes the risk level entirely.

Who runs a société en nom collectif?

One or more managers run the SNC day to day. The bylaws can name a partner or an outside manager, and set specific rules for committing the company with clients and suppliers.

What is the purpose of an SNC?

The SNC lets several people run a commercial, craft, or professional activity under one flexible structure, with no minimum capital, when trust between partners is strong and shared liability is not a concern.

Is an SNC suitable for a freelancer working alone?

No. An SNC needs at least two partners and exposes each one to the company's full debts. A solo freelancer naturally looks at the EURL, the SASU, or wage portage instead, all of which limit personal risk.

Key Takeaways

• An SNC needs at least two partners, all traders, with no minimum capital required.
• Partner liability is unlimited and joint on personal assets.
• The default tax regime is income tax, with an option to elect corporate tax.
• This status suits trusted projects between close partners rather than solo activities.
• For a solo freelancer, the EURL, the SASU, or wage portage remain better suited alternatives.

For related statuses, see our comparison of SASU or EURL and our complete guide to the EURL. Independent workers still weighing a company status against employee status can also check our page on legal status in wage portage and our guide to self employed (TNS) status.

For the official texts, the French commercial code sets out the SNC regime in articles L221-1 to L221-17, while service-public.fr summarizes the setup steps, and URSSAF details the social regime for managing partners.

Related Articles

• SASU or EURL: Which Status Should You Choose in 2026?
• EURL: Definition, Status, Tax and Setup Guide 2026
• Non-Salaried Worker (TNS) Status in France: 2026 Guide