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Is a EURL different from a SARL?

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Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

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Clarity & Protection: Articles of association and shareholder agreements designed to be clear, practical, and protective of shareholder rights—especially if new shareholders join later.Clarity & Protection: Articles of association and shareholder agreements designed to be clear, practical, and protective of shareholder rights—especially if new shareholders join later.Clarity & Protection: Articles of association and shareholder agreements designed to be clear, practical, and protective of shareholder rights—especially if new shareholders join later.Clarity & Protection: Articles of association and shareholder agreements designed to be clear, practical, and protective of shareholder rights—especially if new shareholders join later. 

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Expert legal advice you can rely on:

Is a EURL different from a SARL?

No. An EURL (Entreprise Unipersonnelle à Responsabilité Limitée) is simply the single-member version of a SARL (Société à Responsabilité Limitée).

  • EURL = 1 shareholder: created for entrepreneurs who want to start alone while still enjoying limited liability.

  • SARL = 2 to 100 shareholders: designed for projects with multiple shareholders.

Both forms follow the same legal framework (Commercial Code, articles L. 223-1 and following). The only real difference lies in the number of shareholders: an EURL can automatically become a SARL if the sole shareholder sells or transfers part of their shares.

Thus, a SARL (having more than 1 shareholders) will automatically become a EURL if it is left with only one, and a EURL (having only 1 shareholder) will automatically become a SARL if another shareholder joins. 

Yes, legal entities can be shareholders of an EURL, and in fact this is a common and strategic use of the form.

An EURL can be owned either by a natural person (an individual) or by a legal person (a company). When the sole shareholder is a company, the EURL often serves as a subsidiary or a vehicle for a specific business activity.

Why is this structure preferred for subsidiaries?

  • Simplicity: only one shareholder, clear governance, and limited liability.

  • Flexibility: the parent company keeps full control of the subsidiary’s decisions through the appointment of the manager.

  • Tax efficiency: the EURL is usually subject to corporate tax (IS), which integrates smoothly into group tax planning.

  • Credibility: despite being a single-member company, an EURL is recognized as a full legal entity with its own registered office, bank account, and Kbis.

This makes the EURL a preferred vehicle for French or foreign groups that want to set up or expand their presence in France through controlled, wholly-owned subsidiaries.

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