SASU vs EURL: Which Legal Status to Choose in France?

Are you dreaming of launching your own business in France, but a crucial question is blocking your momentum: should you choose a SASU (sole-shareholder simplified joint-stock company) or an EURL (sole-shareholder limited liability company)? These two legal structures allow you to undertake business alone while protecting your personal assets, but they obey radically different tax, social security, and management rules. Whether you are a French entrepreneur or a foreign resident wishing to establish yourself in France, this comprehensive guide, written by our experts, analyses the strengths and weaknesses of each status in detail to help you make the best choice.

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SASU and EURL: Fundamental Rules and the Legal Framework

To understand the fundamental difference between a SASU (Société par Actions Simplifiée Unipersonnelle) and an EURL (Entreprise Unipersonnelle à Responsabilité Limitée), one must dive into their legal nature. Although both are single-shareholder commercial companies (with a single partner), their internal operations are governed by distinct logics under the Code de commerce (French Commercial Code).

The EURL: The Strength of a Secured Legal Framework

The EURL is actually a SARL (Société à Responsabilité Limitée / limited liability company) that has only one partner. It is strictly regulated by law, notably by Articles L. 223-1 et seq. of the Code de commerce.

This rigid legal framework presents a major advantage for beginners: the law provides for almost everything, which limits the risk of errors when drafting the statuts (articles of association). The assets of the sole partner are legally separated from those of the company. Under Article L. 526-22 of the Code de commerce, the partner's liability is limited to the amount of their contributions, except in cases of serious management misconduct.

The SASU: Contractual Freedom Above All

The SASU is a single-shareholder SAS (Société par Actions Simplifiée), governed by Articles L. 227-1 et seq. of the Code de commerce. Unlike the EURL, the SASU offers immense contractual freedom. The law leaves great flexibility to the sole shareholder to organise the running of their company in the statuts.

This flexibility is particularly attractive if you plan to bring in new partners in the medium term (fundraising, partnership). The transition from a SASU to a classic SAS is carried out smoothly, without heavy structural modifications.

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The Matchup: Social Security, Taxation, and Remuneration

The choice between a SASU and an EURL relies mainly on three trade-offs: the social security protection of the director, the taxation of profits, and the method of remuneration.

1. The Social Security Regime of the Director: TNS vs Assimilé-salarié

This is often the deciding factor for business creators.

• The manager of an EURL (sole partner): They are affiliated with the regime for Travailleurs Non-Salariés (TNS / self-employed workers), attached to the Sécurité Sociale des Indépendants (SSI / Social Security for the Self-Employed). Social security contributions are low, representing approximately 45% of the net remuneration. On the other hand, the social protection is slightly less protective, particularly regarding supplementary pension and disability/life insurance (although it is possible to compensate for this through dedicated savings insurance contracts known as "Madelin contracts").
• The president of a SASU: They benefit from the status of assimilé-salarié (assimilated employee). If they pay themselves a salary, they are affiliated with the Régime Général de la Sécurité Sociale (General Social Security Scheme). Their social protection is almost identical to that of an executive employee (excluding unemployment insurance). In return, social security contributions are much higher, representing approximately 75% of the net remuneration.

2. The Tax Regime: Income Tax (IR) or Corporate Tax (IS)

By default, the two structures do not have the same starting tax regime, but options exist:

• The EURL is by default subject to Impôt sur le Revenu (IR / Income Tax). The company's profits are directly integrated into the sole partner's personal income tax return. However, the EURL can opt for Impôt sur les Sociétés (IS / Corporate Tax) on an irrevocable basis.
• The SASU is by default subject to Impôt sur les Sociétés (IS / Corporate Tax). The standard rate of IS is 25%, with a reduced rate of 15% on the portion of profits up to €42,500 (subject to turnover and paid-up capital conditions). The SASU can opt for IR, but for a maximum duration of 5 years (Article 239 bis AB of the Code général des impôts / French General Tax Code).

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Examples of Financial Simulations

To see things more clearly, let's analyse two profiles of entrepreneurs with different strategies.

Example 1: Thomas, IT Consultant (Goal: Regular Monthly Remuneration)

Thomas generates an annual turnover of €80,000. After deducting his professional operating expenses (€10,000), he has a budget of €70,000 for his remuneration and social security contributions.

• EURL Option (TNS Regime):
• Thomas decides to pay himself a net income of approximately €48,000 per year (€4,000 per month).
• Social security contributions (approx. 45% of the net) amount to €21,600.
• Total cost for the EURL: €69,600. The budget is respected.
• SASU Option (Assimilé-salarié):
• For the same total cost of €70,000, Thomas must factor in social security contributions of 75% on his net.
• His annual net remuneration will only be around €40,000 per year (€3,333 per month).
• Social security charges amount to €30,000.
• Verdict: For an equivalent budget, the EURL allows Thomas to take home €8,000 more per year in his pocket compared to the SASU.

Example 2: Sarah, Creator of a Cosmetics Brand (Goal: Optimisation with Dividends and ARE)

Sarah has just left her job and benefits from the Allocation d'aide au Retour à l'Emploi (ARE / return-to-work allowance) paid by France Travail (formerly Pôle Emploi). She wishes to reinvest all profits into her company and not pay herself a salary in order to combine her allowances at 100%. She also wishes to pay herself dividends at the end of the year.

• EURL Option:
• Even if Sarah pays herself zero salary, she will have to pay minimum social security contributions (approx. €1,000 per year).
• Furthermore, if profits are distributed as dividends, the portion of these dividends exceeding 10% of the EURL's share capital is subject to TNS social security contributions (45%). Dividends lose their tax appeal.
• SASU Option:
• If Sarah sets her remuneration at €0, she pays strictly no social security contributions. She can combine the entirety of her unemployment benefits (ARE) with the presidency of her SASU.
• At the end of the financial year, she can distribute dividends from her SASU. These dividends are not subject to social security contributions (only to social levies of 17.2% and income tax, or to the global Flat Tax of 30%).
• Verdict: The SASU is the ideal status for Sarah to optimise her unemployment benefits and receive remuneration exclusively in dividends.

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Step-by-Step Practical Procedures to Create Your Company

The creation of a SASU or an EURL follows a rigorous legal path. Since 1 January 2023, all creation formalities must be carried out online on the Guichet Unique (Single Window) website managed by the INPI (National Institute of Industrial Property).

1. Drafting the statuts: This is the founding document that defines the rules of the game (company name, corporate purpose, registered office, share capital, financial year). For the EURL, reliable standard templates exist. For the SASU, assistance from a professional is highly recommended due to the freedom of drafting.

2. Depositing the share capital: You must open a professional bank account and deposit the cash contributions there. The minimum share capital is a symbolic €1, but a capital of €500 to €1,000 is recommended for the company's credibility. The bank will issue you an attestation de dépôt des fonds (certificate of deposit of funds).

3. Publishing the notice of incorporation: You must publish a notice of creation in an authorised Journal d'Annonces Légales (JAL / Journal of Legal Notices) in the department of your registered office. This formality costs between €120 and €150 depending on the regulated rates in force.

4. Assembling and submitting the file on the Guichet Unique: You must log on to the INPI portal and upload the supporting documents: signed statuts, attestation de dépôt des fonds, proof of publication of the legal notice, the director's identity document with a declaration of non-conviction, and proof of right to use the premises (lease or domiciliation certificate).

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Deadlines, Costs, and Key Figures to Remember

To budget and plan your launch, here is the essential financial and timeline data:

• Minimum share capital: €1 (for both structures).
• Legal notice fees: Approximately €120 excl. tax for an EURL and €140 excl. tax for a SASU.
• Registry fees (via the Guichet Unique): Approximately €37 to €60 depending on the case (registration in the Registre du Commerce et des Sociétés / Register of Commerce and Companies, and beneficial owners declaration).
• Legal assistance (optional but recommended): Count between €300 and €1,500 depending on whether you use an online legal platform or a specialised lawyer.
• Timeframe to obtain the Kbis: Generally between 4 and 15 business days after the validation of the complete file on the INPI Guichet Unique.
• Social security contribution rate on remuneration: Around 45% in an EURL, compared to around 75% in a SASU.

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Mistakes to Avoid When Launching

• Underestimating the cost of social security charges in a SASU: Many new SASU presidents grant themselves a net salary without provisioning the 75% of employer and employee contributions. The adjustment from the URSSAF (the body responsible for collecting social security contributions) can prove fatal for the first year's cash flow.
• Choosing the SASU solely to "avoid the SSI" (formerly RSI): The historical bad reputation of the Sécurité Sociale des Indépendants wrongly pushes people towards the SASU. Today, the management of the SSI is backed by the general scheme and has considerably improved. Choosing the SASU for this sole reason is a major financial mistake if you wish to pay yourself a regular salary.
• Drafting SASU statuts by "copy-pasting" from the internet: The statutory freedom of the SASU is a double-edged sword. Poorly drafted or unsuitable statuts can block the operation of the company or complicate the future entry of investors.
• Neglecting the declaration of beneficial owners (RBE): This formality is mandatory during registration. Omitting it can block the issuance of your Kbis extract (certificate of incorporation) and expose you to financial penalties.

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FAQ (Frequently Asked Questions)

Can I convert an EURL into a SASU (and vice versa) during the company's life?

Yes, switching from one form to another is entirely possible. However, this constitutes a company transformation which requires modifying the statuts, publishing a new legal notice, and submitting a modification file on the Guichet Unique. This operation generates significant legal and administrative costs (often exceeding €1,000).

Can a non-resident foreigner create a SASU or an EURL in France?

Yes. A foreigner who does not have European nationality can create and manage a company in France. If they wish to reside in France to manage their business, they must obtain a long-stay visa or a temporary residence permit marked "entrepreneur/profession libérale". If they manage the company from abroad without residing in France, no residence permit is required, but specific identity verification formalities apply.

Which status is best suited to combine with the ARE (unemployment benefit)?

The SASU is generally more suitable. By paying yourself no remuneration for the presidency, you can produce a procès-verbal de non-rémunération (minutes of non-remuneration) for France Travail. This allows you to receive 100% of your monthly unemployment benefits while growing the value of your business. In an EURL, minimum contributions are due even without income, which can complicate the full maintenance of the ARE.

Is it mandatory to open a professional bank account?

Yes. For commercial companies (SASU, EURL, SAS, SARL), opening a dedicated bank account in the name of the company, with the deposit of the initial share capital, is a legal obligation to obtain registration in the RCS (Register of Commerce and Companies). Online banks (neobanks) now offer suitable and economical packages for business creators.

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In Summary

• The EURL is ideal if you are looking to maximise your immediate net remuneration thanks to low social security charges (45%).
• The SASU is ideal if you benefit from unemployment benefits (ARE) and wish to combine your allowances with the creation of your business by paying yourself no salary.
• The SASU offers maximum legal flexibility and facilitates welcoming future partners or investors, unlike the EURL whose framework is very rigid.
• The EURL is by default subject to Income Tax (IR), while the SASU is by default subject to Corporate Tax (IS).
• Creation formalities for both statuses are carried out exclusively online on the INPI Guichet Unique for an initial administrative cost of approximately €200 to €300 (excluding legal assistance).

Legal information for guidance only, not personalised legal advice. For your specific situation, ask your question free of charge on AvocatAI — answers based on French law, in your language.