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Designed for entrepreneurs abroad who need clarity and results.
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French Companies
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.
Can legal entities be shareholders of a EURL?
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.
