The single-member private limited liability company or l’entreprise unipersonnelle à responsabilité limitée (EURL), is a variation of the French version of a private limited company or société à responsabilité limitée (SARL). It is, in fact, a SARL with just one owner. This means that EURL’s are subject to the same regulations as SARLs, with the exception of a few regulatory alterations that take into account the lack of partners.
The EURL legal status was created in 1985 to provide a solution for small traders who did not want to risk their private assets in an individual company.
EURL’s have several specific features:
The owner’s responsibility for an EURL’s debt is limited to the amount that they originally paid in, so their total assets are not at risk.
The company type is aimed at entrepreneurs who want to launch their business alone. Depending on how their company develops, owners can later decide to bring in partners by giving up part of their share in the company to enable their new partners to invest.