A graphic designer signing bigger contracts, a plumber who wants to keep personal assets apart from the business, a consultant who does not want to share capital with anyone: all of them can choose the EURL. The EURL status gives a single person a real company, with its own legal personality, name and accounts, without a partner to convince or a meeting to call.
This form still follows precise rules on capital, management, tax and the manager’s social protection. This guide takes them one by one, based on the sheets published by Bpifrance Création and by the French administration, then details the setup steps and the life of the company after registration.
Key points at a glance:
- Definition of the EURL: a limited liability company (SARL) with only one shareholder, a natural or a legal person.
- The shareholder sets the capital freely; at least 20% of the cash contributions is paid in at setup, the rest within 5 years.
- With a natural-person shareholder, profits fall under income tax, unless corporate tax is chosen; with a company as shareholder, corporate tax applies.
- The sole shareholder-manager is self-employed (TNS) and pays contributions to the Sécurité sociale des indépendants.
EURL: definition and meaning
The definition of an EURL fits in one sentence: it is a SARL formed by a single shareholder. The acronym stands for entreprise unipersonnelle à responsabilité limitée, a single-member limited liability company. The shareholder can be a natural person or a legal person, a company or an association for instance. Even an unemancipated minor can form an EURL, with the authorisation of their legal representatives. All SARL rules apply, except the adjustments required by having a single shareholder.
In the practical meaning of the EURL, the company exists in its own right: it is entered in the trade and companies register (RCS) and in the national business register (RNE), through the one-stop shop (guichet unique). It can carry on a commercial, craft, liberal or agricultural activity. A few activities are excluded, such as running a tobacco shop or insurance. The day a second shareholder joins the capital, the EURL automatically becomes a SARL.
Share capital and the shareholder’s liability
The law sets no minimum amount: the shareholder sets the capital freely, according to the size of the business and its financing needs. Capital out of line with the economic needs of the project can, however, make the manager personally liable. The capital is made of cash contributions or contributions in kind: a vehicle, equipment, a trademark. At least 20% of the cash contributions must be paid in at incorporation, the balance within the five years following registration. Depending on the value of contributions in kind, against two thresholds set by law (€30,000 per contribution and half of the capital), their valuation by a contributions auditor (commissaire aux apports) can become compulsory.
In return, the single shareholder’s liability is limited to the contributions, and personal assets stay protected if the company runs into difficulty. Two situations are exceptions. A shareholder-manager can answer with personal assets for mismanagement, such as excessive spending while the company is loss-making. And a personal guarantee given to a lender commits their assets, for that guarantee only.
Worth remembering: the amount of capital is free, but it must stay consistent with the project. Liability stops at the contributions, except for mismanagement and a guarantee signed personally.
Who runs an EURL: manager and single shareholder
An EURL is run by one or more managers (gérants), who must be natural persons. The manager is appointed in the articles of association or by a separate decision of the single shareholder. It can be the shareholder or a third party. Unless the articles limit them, the manager has full powers to act on behalf of the company, within the powers the law reserves to the shareholder. The single shareholder’s decisions are recorded in a special register kept at the registered office.
When the single natural-person shareholder runs the company personally, several rules become lighter:
A non-shareholder manager, for their part, draws up the annual accounts and the management report every year, then submits them to the single shareholder, who decides on the accounts and the allocation of profit. The shareholder then keeps a right to information and remains the only beneficiary of dividends.
EURL tax: income tax or corporate tax
When the single shareholder is a natural person, income tax applies automatically. Profit is calculated at company level, then carried onto the shareholder’s personal tax return: as industrial and commercial profits (BIC) for a commercial or craft activity, as non-commercial profits (BNC) for a liberal activity. If the shareholder is also the manager, the EURL can even fall under the micro-entreprise tax regime. When the single shareholder is a company, the EURL is subject to corporate tax by law.
The corporate tax option is taken at setup, by ticking the box on the one-stop shop, or later, before the end of the third month of the financial year concerned, by registered letter to the business tax office. Profit is then taxed at 25%, with a reduced 15% rate on the first €42,500 if turnover excluding VAT does not exceed €10 million and if the capital, fully paid up, is at least 75% held by natural persons. The company can give up the option until the fifth financial year that follows; after that, the option becomes irrevocable.
| Point | EURL under income tax | EURL under corporate tax |
|---|---|---|
| Who pays tax on profit | The shareholder, on their personal return | The company |
| Rate | Income tax scale (BIC or BNC) | 15% up to €42,500 under conditions, 25% above |
| Manager’s pay | A drawing on profit, not deductible | Deductible, taxed as wages and salaries |
| Dividends | Not applicable | Possible, partly subject to contributions |
| How it applies | By default with a natural-person shareholder | By option, or automatically with a company as shareholder |
Social status of the EURL manager
On the social side, the sole shareholder-manager falls under the self-employed scheme (TNS) and pays contributions to the Sécurité sociale des indépendants. They cannot combine this role with an employment contract in their own company. According to Bpifrance Création, their contributions average 45% of net pay, about 30% above one annual social security ceiling, and a minimum contribution remains due even in years without pay. They are not covered by unemployment insurance. If the EURL is under income tax and the manager has chosen the micro-entreprise tax regime, contributions are calculated on turnover, under the micro-social scheme.
An external manager paid for the mandate falls, by contrast, under the assimilé salarié scheme: social security and pension close to those of employees, but no unemployment insurance either. They can also sign an employment contract for distinct technical duties, if there is a relationship of subordination with the single shareholder. At setup, the manager can apply for the Acre: since 2026, it exempts for 12 months 25% of certain contributions, for certain founder profiles and under an income ceiling.
The manager’s pay and dividends
The manager’s pay is set freely by the articles of association, as a fixed or variable amount. Depending on the tax regime, this income does not have the same nature, and a dividend paid by the EURL exists in one case only:
On the tax side, dividends received by a natural person bear the 31.4% flat tax in 2026, that is 12.8% income tax and 18.6% social levies. The household can prefer the progressive scale, which brings a 40% allowance. With modest capital, the share of dividends free of contributions therefore stays small, which weighs on the choice between pay and distribution.
In short: under income tax, the whole profit is taxed in the shareholder-manager’s name and subject to their contributions. Under corporate tax, pay becomes a deductible expense and part of the profit can be paid out as dividends, above the 10% threshold with contributions.
EURL: pros and cons
The table of pros and cons drawn up by Bpifrance Création helps place the form. On the plus side, the EURL offers:
Several points, on the other hand, call for attention:
This list of the pros and cons of the EURL shows a form designed to start alone within a solid framework, while keeping the door open to a future shareholder.
Setting up an EURL: the steps
Setting up an EURL online goes through the one-stop shop for business formalities, once the documents are ready. Several documents are needed in a precise order, because each certificate feeds the next step. The steps follow like this:
For an EURL whose single shareholder is also the manager, model EURL articles appear in annex 2-1 of the French Commercial Code. The articles set the company’s operating rules, its registered office and the manager’s name.
The cash contributions, at least 20%, are deposited on an account opened in the name of the company in formation. The institution that receives the funds issues a certificate of deposit.
Before registration, the setup is announced in a medium authorised to carry legal notices. The medium issues a certificate of publication.
The file goes to the one-stop shop for business formalities. It brings together the certificate of publication, the certificate of capital deposit, the articles and the beneficial owners declaration.
After registration, the EURL is given its Siren and Siret numbers and its APE code. It can then invoice its first clients from its own business account.
Life of the EURL: accounts, transfer and growth
After setting up the EURL, the company keeps regular, accurate and faithful accounts, whose scope depends on its size. Its invoices carry the mandatory details. Every year, the accounts are approved, then filed at the registry, in person or online on the one-stop shop; for the shareholder-manager, filing within 6 months stands in for the approval vote.
The single shareholder can sell parts to anyone, with no approval needed. The deed of transfer is registered with the tax authorities, with a duty of 3% of the sale price paid by the buyer, after an allowance equal to €23,000 multiplied by the number of parts sold and divided by the total number of parts. A partial transfer brings in a new shareholder: the EURL then becomes a SARL, and the updated articles are filed on the one-stop shop within one month.
A business account for your EURL with Vivid
Once the EURL is registered, its Vivid online business account can be requested from a phone or a computer, without a branch appointment. Opening the account usually takes between 10 minutes and 1 hour, and it costs nothing. Vivid uses official registers to pre-fill the company’s profile, then asks each director to verify their identity and collects information on the beneficial owners. The EURL falls under the General Business plans:
Invoices are created and sent without limit from the same space, and free virtual and physical Visa debit cards come with the business account. New customers get a 2-month free trial on the paid plan chosen at sign-up.
Vivid at a glance: an online business account for the EURL from registration, usually opened within 10 minutes to 1 hour, with unlimited French IBANs and unlimited invoices. Free Start is €0 per month, Basic starts at €6.90 per month billed annually.
The business account for your EURL
Request its Vivid business account online, get French IBANs and invoice clients from day one, with the Free Start plan at €0 per month.
Frequently asked questions
What is an EURL?
An EURL, or entreprise unipersonnelle à responsabilité limitée, is a SARL with a single shareholder. That shareholder can be a natural person or a company. Their liability is limited to the contributions, except for mismanagement.
What is the minimum capital for an EURL?
There is no required minimum: the shareholder sets the capital freely. At least 20% of the cash contributions must be paid in at setup, the balance within 5 years of registration. Capital too low for the project can, however, make the manager liable.
EURL under income tax or corporate tax?
With a natural-person shareholder, the EURL is under income tax by default and profit is taxed in the shareholder’s name. The corporate tax option is taken at setup or before the end of the third month of the financial year. It can be given up until the fifth following financial year; after that, it can no longer be withdrawn.
How is the manager of an EURL paid?
The manager’s pay is set freely by the articles of association, fixed or variable. Under income tax, it is a drawing on profit that is already taxed; under corporate tax, it is deductible and taxed as a salary. An EURL under corporate tax can also pay dividends. The part above 10% of the capital, premiums and current accounts is then subject to contributions.
What is the difference between an EURL and a SARL?
The EURL is a SARL with a single shareholder: both forms follow the same rules. When the single shareholder sells part of the parts to a new shareholder, the EURL automatically becomes a SARL. Its articles are then adapted to running with several shareholders.
What is the difference between an EURL and a sole proprietorship?
Since 15 May 2022, a sole proprietor (entrepreneur individuel) benefits from an automatic separation of personal and business assets, with exceptions. The EURL, for its part, is a legal person distinct from its shareholder. The shareholder’s liability is limited to the contributions, which makes mixing the two sets of assets harder.
Is the EURL manager entitled to unemployment benefits?
The sole shareholder-manager is self-employed and is not covered by unemployment insurance. An external manager treated as assimilé salarié is not covered either for the mandate. A founder who already receives the return-to-work allowance can keep it under conditions during the setup. In an EURL, dividends subject to contributions count in its calculation.
This article is provided for general information only and does not constitute legal, tax or social security advice. The rules on the EURL are presented as published by Bpifrance Création and the French administration; choices of capital, tax regime and pay are worth confirming with a chartered accountant or a lawyer. Payment services are provided by Vivid Money S.A., an electronic money institution authorised by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg, whose French branch is supervised by the Autorité de contrôle prudentiel et de résolution (ACPR).
