Choosing the right legal structure is one of the most important steps when starting a business in France. The legal form you select affects taxation, social security contributions, liability, accounting obligations, and even your long-term development strategy. France offers several business structures suitable for freelancers, SMEs, startups, and large organizations. Below is an overview of the main options and how they compare.

1. Micro-Enterprise (Auto-Entrepreneur)

The micro-enterprise is the simplest and most accessible structure for freelancers and small business owners.

Key Features

• Very easy to register

• Simplified accounting (no balance sheet, only revenue record)

• Taxation based on turnover, with ceilings depending on activity

• Limited deductions (cannot deduct real expenses)

• Personal liability unless opting for entrepreneur individuel protections

Best For

Freelancers, consultants, small service providers, and people testing a business idea with low financial risk.

2. Entreprise Individuelle (EI)

The EI is a sole-proprietorship structure where the entrepreneur and the business are legally the same entity.

Key Features

• Full liability, but primary residence is protected

• Taxation under income tax (BIC or BNC)

• Flexible social system, based on actual profits

• Allows transition to régime réel for professional expense deduction

Best For

Freelancers and self-employed professionals who exceed micro-enterprise limits or want to deduct real expenses.

3. Entreprise Individuelle à Responsabilité Limitée (EIRL)

Although now replaced by protections integrated into the EI, some references still exist.

Key Features

• Was designed to limit liability by separating personal and professional assets

• No longer available for new creations since 2022

Best For

Mainly useful for understanding older documents; replaced by the modern EI framework.

4. Société à Responsabilité Limitée (SARL)

The SARL is one of the most common company forms in France.

Key Features

• Limited liability for partners

• Minimum 2 partners, or can be created as a single-member company (EURL)

• Clear governance rules, good for small and medium businesses

• Social system depends on the manager’s status (majority manager = self-employed regime)

Best For

Family businesses, small companies, retail, and structures wanting stable legal governance.

5. Entreprise Unipersonnelle à Responsabilité Limitée (EURL)

The EURL is the single-shareholder version of the SARL.

Key Features

• Same protection and rules as SARL

• One partner only

• Convenient transition from auto-entrepreneur to full company

Best For

Solo entrepreneurs who want limited liability and a more professional structure.

6. Société par Actions Simplifiée (SAS)

The SAS is the most flexible and modern company form in France.

Key Features

• Highly flexible bylaws

• Limited liability for shareholders

• President has employee-like social protection (general social security system)

• Attractive for investors and startups

Best For

Startups, scalable businesses, companies seeking investment, and modern commercial activities.

7. Société par Actions Simplifiée Unipersonnelle (SASU)

The SASU is the single-shareholder version of the SAS.

Key Features

• Same advantages as SAS

• Perfect for solo founders planning future fundraising or partnerships

• Solid social protection for the president

Best For

Solo entrepreneurs planning to grow or raise capital.

8. Société Anonyme (SA)

The SA is the traditional legal form for large corporations.

Key Features

• Minimum capital requirement

• Board of Directors or Executive Board

• Mandatory statutory auditor

• Complex governance and reporting obligations

Best For

Large companies or businesses preparing to go public.

9. Société Civile Immobilière (SCI)

The SCI is a civil company used for managing real estate.

Key Features

• Used for property ownership and management

• Flexible for families or investors

• Partners have unlimited liability proportional to their shares

• Taxation under income tax or corporate tax (optional)

Best For

Families, real-estate investors, and those wishing to structure property ownership.

How to Choose the Right Legal Structure

When selecting a French legal form, consider:

Summary Table of Main Legal Structures in France