# SAS, SARL, or EURL? Choosing the Right Legal Structure for Your French Company [![SAS-SARL-or-EURL-Choosing-the-Right-Legal-Structure-for-Your-French-Company](https://i.ibb.co/JRKnnPY6/SAS-SARL-or-EURL-Choosing-the-Right-Legal-Structure-for-Your-French-Company.jpg)](https://enterslice.com/fr/company-registration-in-france) When planning a business venture in France, one of the most important decisions you'll make is choosing the appropriate legal structure. France offers several types of business entities, but for many entrepreneurs—whether local or foreign—the top choices often come down to SAS, SARL, or EURL. Each structure has its own advantages, limitations, and tax implications. If you're looking to register a company in France, understanding these differences can help you make the right choice from the beginning. In this guide, we’ll break down these three main types of companies to help you decide which one best suits your goals for opening a company in France. - - - ## Why Legal Structure Matters in France Before diving into SAS, SARL, and EURL, it's important to understand why your legal structure matters. * It determines your liability as an owner * It affects how you pay taxes and social charges * It influences investor appeal and capital flexibility * It defines how your company can be managed and governed * It can impact your exit strategy or succession planning Choosing the wrong structure could limit your growth potential, increase your tax burden, or make administrative processes more complicated. That’s why entrepreneurs exploring **[company registration in France](https://enterslice.com/fr/company-registration-in-france)** must weigh their options carefully. - - - ## Overview of the 3 Main Legal Structures Let’s start with a quick comparison of SAS, SARL, and EURL before going into detail: | Feature | SAS | SARL | EURL | | --- | --- | --- | --- | | Full Name | Société par Actions Simplifiée | Société à Responsabilité Limitée | Entreprise Unipersonnelle à Responsabilité Limitée | | Minimum Shareholders | 1 (SASU) | 1 (EURL) or 2 for SARL | 1 | | Flexibility | Very high | Moderate | Same as SARL but for solo founder | | Social Charges for President | TNS or assimilé salarié | TNS (independent worker) | TNS | | Investor-Friendly | Yes | Less so | No (solo company) | | Ideal For | Startups, tech companies, growing businesses | SMEs, family businesses | Solo entrepreneurs | - - - ## SAS (Société par Actions Simplifiée) **Best for: Tech startups, high-growth companies, investors, and joint ventures** SAS is the most flexible and modern structure in the French legal system. It is becoming the go-to option for entrepreneurs, especially for startups planning to raise capital or bring in multiple shareholders. ### Key Features: * No maximum number of shareholders * Can have just one shareholder (called SASU) * Shareholders have limited liability to the extent of their contributions * No minimum capital requirement (can be €1) * Wide freedom in drafting company bylaws (statuts) * President (company head) can be either a physical person or legal entity ### Advantages: * Flexible governance structure * Attractive for foreign investors * Ability to issue different classes of shares * Easier for external fundraising * President is treated as an "assimilé salarié," allowing social security coverage similar to employees (but no unemployment insurance) ### Disadvantages: * More complex to set up than SARL * Higher social charges due to employment-like status * Requires formal accounting and reporting ### When to choose SAS: If you plan on scaling your business, raising investment, or offering employee share options, SAS is generally the most favorable structure when **opening a company in France**. - - - ## SARL (Société à Responsabilité Limitée) **Best for: Traditional businesses, small-to-medium enterprises, and family-run companies** [**SARL in France**](https://enterslice.com/fr/sarl-private-limited-company-registration-france) is a more traditional business structure, comparable to the LLC (Limited Liability Company) in other countries. It’s known for its legal stability and is suitable for companies that don’t require high structural flexibility. ### Key Features: * Requires between 2 and 100 shareholders (unless it's an EURL) * Shareholders’ liability is limited to their capital contribution * Standard governance model (manager = gérant) * Gérant can be a shareholder or an outside individual ### Advantages: * Familiar structure with predictable legal framework * Suitable for husband-wife or family businesses * Lower social charges for majority shareholder-manager (TNS status) * Generally less expensive to run than SAS ### Disadvantages: * More rigid bylaws * Cannot issue preferred shares or multiple voting rights * Not ideal for raising funds from outside investors ### When to choose SARL: SARL is a great option for stable, long-term businesses that don’t need to attract external investment. If you’re looking for simplicity in management and cost control during **company registration in France**, SARL may be your best bet. - - - ## EURL (Entreprise Unipersonnelle à Responsabilité Limitée) **Best for: Solo entrepreneurs who want liability protection** EURL is essentially a single-member version of a SARL. It’s ideal for freelancers or self-employed professionals who want to **register a company in France** with limited liability and without partners. ### Key Features: * One single associate (owner) * Structure mirrors SARL in terms of management and taxation * Shareholder liability is limited * Owner can choose to be taxed under personal income tax or corporate tax ### Advantages: * Full control over the business * Low setup cost and administrative simplicity * Possibility to convert into SARL if adding partners later * Owner can have TNS status (lower social contributions) ### Disadvantages: * Not suitable for raising capital * May seem less “professional” for certain business types * Limited flexibility compared to SASU (single-person SAS) ### When to choose EURL: If you're a solo founder and want the protection of a company rather than operating as a freelancer, EURL is a safe and affordable way to begin opening a company in France. **Also Read: Post Registration Compliances for [Company Registration in Vietnam](https://enterslice.com/vn/company-registration-in-vietnam)** - - - ## Taxation Considerations The choice between SAS, SARL, and EURL can also affect how your company and its directors are taxed: * **Corporate Tax (Impôt sur les Sociétés)**: All structures are subject to standard corporate tax unless EURL opts for income tax. * **Social Charges**: * SAS President: Assimilated employee status → Higher contributions * SARL/EURL Gérant: Self-employed (TNS) → Lower contributions, fewer benefits * **Dividends**: Different rates and social tax treatment depending on the structure and ownership shares For example, an SAS President paying themselves a salary will face higher social charges but can benefit from a broader social protection system. A SARL Gérant may pay lower charges but will have more limited coverage. - - - ## Which Structure Is Best for Foreigners? For foreign nationals interested in **company registration in France**, SAS (or SASU) is typically the most favorable option due to: * Flexibility in ownership and management * Better alignment with international investor expectations * Easier expansion and fundraising * Modern corporate image However, if you are a solo entrepreneur starting small, EURL or SARL might offer a cost-effective and simpler path. - - - ## Final Thoughts Choosing between SAS, SARL, or EURL depends on your long-term goals, team structure, funding needs, and personal preferences. Each structure comes with its own legal, fiscal, and operational consequences. If you're looking for growth, outside capital, or maximum flexibility, go with **SAS**. If you're managing a small to medium traditional business, **SARL** might serve you better. And if you're launching a solo operation, **EURL** offers a simple entry point for **opening a company in France**. In all cases, it’s recommended to consult a French legal or accounting professional before making a final decision—especially if you're not a French resident or are unfamiliar with local law.