Legal Forms of French Companies: SARL, SAS, SA, Auto-entrepreneur...

Choosing the legal form is one of the most important decisions when starting a business in France. This guide details all available options to help you make the right choice.

Sole Proprietorship

Auto-entrepreneur (Micro-enterprise)

The auto-entrepreneur status is the simplest and most accessible way to start a business in France.

Advantages

• Free and fast creation
• Simplified accounting
• Charges based on actual revenue
• No VAT (below thresholds)
• Can be combined with employment

Disadvantages

• Revenue ceilings
• Unlimited liability
• No expense deduction
• Less professional image
• Difficulty borrowing

Revenue ceilings (2024)

• Sale of goods: €188,700
• Services: €77,700

Individual Enterprise (EI)

Since 2022, the EI benefits from automatic personal asset protection (former EIRL).

Capital: None required
Liability: Limited to professional assets
Taxation: Personal income tax or corporate tax option
Social regime: Self-employed (TNS)

Single-member Companies

EURL (Single-member Limited Liability Company)

The EURL is an SARL with a single partner. It offers personal asset protection.

Minimum capital	€1 (free)
Number of partners	1 natural or legal person
Liability	Limited to contributions
Manager	Manager (sole partner or third party)
Default taxation	Personal income tax (corporate tax option)
Manager's social regime	Self-employed if partner, employee-like otherwise

SASU (Single-member Simplified Joint Stock Company)

The SASU is an SAS with a single shareholder. It offers great statutory flexibility.

Minimum capital	€1 (free)
Number of partners	1 natural or legal person
Liability	Limited to contributions
Manager	President (+ optional CEO)
Default taxation	Corporate tax (personal income tax option for 5 years)
President's social regime	Employee-like

Multi-member Companies

SARL (Limited Liability Company)

The SARL is the most common legal form in France for SMEs. It offers a secure legal framework suited to family projects or trusted partners.

Partners: 2 to 100
Capital: €1 minimum (free)
Management: One or more managers
Taxation: Corporate tax by default, personal income tax option possible
Share transfer: Approval required for third parties

SAS (Simplified Joint Stock Company)

The SAS offers great freedom in organizing governance and is very popular with startups and investors.

Partners: 2 minimum (no maximum)
Capital: €1 minimum (free)
Management: President mandatory, other bodies free
Taxation: Corporate tax by default
Share transfer: Statutory freedom

Why do investors prefer SAS?

• Flexibility to create share categories (preferred, etc.)
• Easy entry/exit for partners
• Possibility of complex shareholder agreements
• Attractive employee-like regime for president

SA (Public Limited Company)

The SA is suitable for large companies and allows stock market listing.

Partners: 2 minimum (7 if listed)
Capital: €37,000 minimum
Management: Board of Directors + CEO or Management Board + Supervisory Board
Statutory auditor: Mandatory

Comparison of Legal Forms

	Auto-entrepreneur	EURL	SASU	SARL	SAS
Partners	1	1	1	2-100	2+
Min. capital	-	€1	€1	€1	€1
Liability	Unlimited	Limited	Limited	Limited	Limited
Social regime	Self-employed	Self-employed	Employee-like	Self-employed (majority)	Employee-like
Taxation	Personal	Personal/Corp	Corp/Personal	Corp/Personal	Corp/Personal

How to Choose?

Choose auto-entrepreneur if:

You're starting a side activity
Your expected revenue is below the thresholds
You want to test your project risk-free

Choose EURL/SARL if:

You want to protect your personal assets
You prefer a structured legal framework
You prefer the self-employed regime (lower contributions)

Choose SASU/SAS if:

You plan to raise funds
You want great statutory flexibility
You prefer the employee-like regime