An EURL is a SARL with one partner. It gives a solo entrepreneur limited liability and the lower social charges of the self-employed scheme, within a simple, well-framed structure that can grow into a SARL later.
In brief
- Partner
- Exactly 1
- Minimum capital
- €1, freely set
- Liability
- Limited to contributions
- Taxation
- Income tax (IR) by default, option for corporate tax (IS)
- Manager
- Self-employed (TNS) scheme, lower charges
Advantages
- Limited liability for a solo entrepreneur.
- Lower social charges under the self-employed (TNS) scheme.
- Simple, legally-framed structure with low surprises.
- Converts into a SARL when a second partner joins.
Trade-offs
- Less flexible than a SASU.
- Self-employed social cover is lighter than the general scheme.
- Harder to open to investors than a share-based company.
Best for
Solo entrepreneurs who want limited liability and lower charges, and are not planning to raise venture capital.
Frequently asked questions
EURL or micro-enterprise?
A micro-enterprise is lighter and cheaper to run but offers no liability shield and has revenue ceilings. An EURL protects your assets and scales further, at the cost of real accounting.
Can I switch an EURL to corporate tax?
Yes, an EURL is taxed at income tax by default but can opt for corporate tax. Model the impact with an accountant, as the choice has lasting effects.