SASU, SAS, SARL or EURL: which legal form should you choose in France
Most founders creating a company in France hesitate between four legal forms: the SAS and its single-shareholder version the SASU, and the SARL and its single-shareholder version the EURL. All four limit your liability to your contribution and can be created with a share capital of 1 euro. The real differences lie in how the director is covered by social security, how flexible the rules are, and how profits are paid out.
The four forms at a glance
The SAS (société par actions simplifiée) is a simplified joint-stock company with two or more shareholders. The SASU is the same company with a single shareholder. The SARL (société à responsabilité limitée) is a limited liability company with two or more partners, and the EURL is its single-partner version.
In all four, the shareholders are only liable for the company debts up to the amount they contributed, there is no minimum capital, and the company pays corporate income tax by default.
Social security of the director
This is the main difference. The president of an SAS or SASU is treated like an employee for social security purposes (assimilé salarié). When paid a salary, social contributions are higher, but coverage is close to that of an employee. If the president takes no salary, no social contributions are due.
The majority manager (gérant majoritaire) of an SARL or the manager of an EURL falls under the self-employed scheme (travailleur non salarié). Contributions are generally lower for the same income, but coverage is lighter, and a minimum level of contributions is due even in years without income.
Flexibility and governance
The SAS and SASU are very flexible: the founders freely write the rules on governance, share transfers and decision making in the articles of association. This makes them popular with startups and with investors.
The SARL and EURL are more strictly framed by law. The rules are more protective for partners, but transferring shares to outsiders requires the approval of the other partners, and changes to the structure are more formal.
Paying yourself: salary and dividends
In an SAS or SASU, dividends are not subject to social contributions and are taxed under the flat tax on investment income by default. Many founders combine a modest salary with dividends.
In an SARL or EURL, the part of dividends received by the manager above a threshold linked to share capital is subject to self-employed social contributions, which reduces the advantage of paying yourself through dividends.
Which form for a foreign founder
For a single founder living abroad, the SASU is usually the simplest choice: there is no residency condition for the president, the rules are flexible, and the company can easily welcome new shareholders later as an SAS.
Whatever the form, the company needs a registered office address in France before it can be registered. A domiciliation service provides it remotely. Consider asking an accountant to model your situation, as the best form depends on your expected income and how you plan to pay yourself.
Your SASU or SARL needs a French address
Register your company with a prefecture-approved registered office in Paris or Normandy, from 10 euros per month.
Get my registered officeFrequently asked questions
What is the minimum share capital for a SASU or SARL?
There is no legal minimum: a SAS, SASU, SARL or EURL can be created with 1 euro of share capital. A higher capital can improve your credibility with banks and partners.
Can a non-resident be president of a SASU?
Yes. French law imposes no nationality or residency condition on the president of a SASU. A residence permit is only needed if you intend to live in France.
Can I convert an EURL into a SASU later?
Yes. A company can change its legal form during its life. The conversion requires a decision of the partners, updated articles of association and a filing with the registry.
How is the company profit taxed?
By default, all four forms pay corporate income tax. Small companies meeting certain conditions benefit from a reduced rate of 15 percent on the first part of their profit, with the standard 25 percent rate above.