Legal forms of business in France: micro, EI, SASU, EURL or SA in 2026

Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad

You want to invoice from France, or set up a French company for work you do across borders. After this guide, you will know each legal form, how it is taxed in 2026, and which one fits your activity and your travel pattern.

France legal forms of business in 2026: the key figures

What changed for 2026

• New micro thresholds. For revenue received in 2026, the limits are EUR 203,100 for sales and EUR 83,600 for services, based on 2024 and 2025 turnover (Service-Public Entreprendre).
• VAT franchise reform dropped. A single EUR 25,000 threshold proposed in the 2025 budget was abandoned. The 2026 franchise thresholds are unchanged.
• Dividends cost more. The 2026 Social Security Financing Act raised social levies on investment income to 18.6%, so the flat tax on dividends is now 31.4%.
• E-invoicing has started. Since 1 September 2026, every business must be able to receive electronic invoices. Small businesses and micro-enterprises must issue them from 1 September 2027.

Is this guide for you?

Read on if you…

• are a freelancer or consultant choosing between micro-entrepreneur status and a company;
• are a founder setting up a French SAS for co-founders, investors or a holding structure;
• plan to run a French business while spending part of the year abroad.

Probably not your case if you…

• only work as an employee on French payroll;
• are structuring a group with outside investors across several countries. You need tailored legal advice.

Which legal forms of business exist in France?

Micro-entrepreneur (micro-entreprise)

This is a simplified regime for an entreprise individuelle (sole proprietorship). Social contributions are a flat percentage of cash received, paid monthly or quarterly (micro-social rates 2026).

For income tax, a flat allowance replaces real costs: 71% for sales, 50% for commercial services, 34% for liberal professions. The rest is taxed at the progressive scale. Under an income condition, you can opt for the versement libératoire: a final income tax of 1%, 1.7% or 2.2% of turnover (Service-Public).

The income condition: your reference tax income for year N-2 must not exceed EUR 29,579 for a single person, as published by Service-Public. Good news: there is no capital and very little accounting. The catch: real expenses are not deductible.

You leave the regime only after exceeding the threshold two years in a row. In your first year, the threshold is prorated to the days you operate.

Standard sole proprietorship (EI au réel)

Same legal person, but taxed on actual profit under BIC (commercial) or BNC (professional) rules. Your professional assets are legally separated from your personal ones. Tax and social security bodies can still reach both in cases of fraud or serious breaches.

You can opt to have the EI treated like an EURL and taxed under corporate tax.

SASU and SAS (simplified joint-stock company)

The favourite of start-ups and consultants. Capital is set freely in the articles; at least 50% of cash contributions must be paid in at creation. Liability is limited to contributions.

The president is an assimilé salarié (treated like an employee for social security) when paid. If you take no salary, you pay no payroll contributions, and profits come out as dividends at the 31.4% flat tax.

EURL and SARL (limited liability company)

Capital is also free, with at least 20% of cash paid in at creation and the balance within five years. A SARL has 2 to 100 partners; an EURL has one.

A majority manager is self-employed (travailleur non salarié, TNS). Here's a detail founders miss: an EURL whose sole partner is an individual is taxed under income tax by default. You must opt for corporate tax to retain profits at 15% or 25% (Service-Public, EURL taxation). Send the option to your business tax office (SIE) before the end of the third month of the financial year concerned.

SA (public limited company)

Minimum capital is EUR 37,000, with at least two shareholders (seven if listed). The president and managing director are treated as employees. It suits larger and listed companies, rarely a solo founder.

How do the French legal forms compare?

The 15% reduced corporate tax rate needs all of these: turnover up to EUR 10 million, fully paid-up capital, and at least 75% held by individuals (art. 219 CGI on Service-Public). An EURL that keeps its default income tax regime does not use it.

For the costs each structure can deduct, see our guide to business expenses in France.

How do you set up a business in France?

1. Choose the form and, for a company, draft the articles of association (statuts).
2. Deposit the cash capital in a blocked account with a bank or a notary, not a payment institution, and get the deposit certificate.
3. File online on the guichet unique, the single formalities portal run by INPI, with the articles, IDs and proof of address.
4. Receive your registration (SIREN number, and for companies the registry extract). Funds are then released to the company's account.
5. Sort out VAT: register if you exceed the franchise, or choose to charge VAT voluntarily if your clients recover it.

Micro-entrepreneurs only need step 3 and can invoice once registered.

Can you run a French business from abroad?

Here's the catch. Tax follows where the work is done and where decisions are taken, not where the company is registered.

• Place of effective management. If you take all key decisions from another country, that country may treat the French company as its own tax resident, and the treaty tie-breaker decides. Check France's international tax treaties.
• Permanent establishment (PE). Working regularly from a foreign home office for your French company can create a taxable presence abroad.
• Your own residence. Running a French business can be your main professional activity in France, which can keep you French tax resident. See our guide to French tax residency rules.

If you live abroad most of the year, a company in your country of residence is often cleaner. Heavnn's business setup service compares options across countries.

Common mistakes (and what they cost)

• Staying micro with high costs → you are taxed on turnover minus a flat allowance, far above your real profit.
• Missing the VAT franchise limit → you lose the franchise and must charge VAT, often absorbing it from your own margin on existing contracts.
• Assuming an EURL pays 15% corporate tax → by default its profit is taxed at your progressive rate, up to 45%, unless you opt for corporate tax.
• Paying yourself only dividends without a plan → 31.4% flat tax and no pension or sickness cover built through salary.
• Managing a French company from abroad without documentation → double corporate residence or a foreign PE, with back taxes in two countries.

Frequently asked questions

What is the best business structure for a freelancer in France?

For most freelancers starting out, the micro-entrepreneur regime is simplest: no capital, online registration, and contributions as a percentage of turnover. In 2026 it covers up to EUR 83,600 of service revenue. Above that, or with high costs, compare a standard sole proprietorship, an EURL and a SASU on salary, dividends and social cover.

What is the difference between a SASU and an EURL?

Both are single-shareholder companies with limited liability and freely set capital. In a SASU, the president is treated like an employee for social security and the company pays corporate tax. In an EURL, the manager is self-employed, and the company is taxed under income tax by default unless it opts for corporate tax.

Can a non-resident set up a company in France?

Yes. You can own and manage a French SAS or SARL without living in France, filing through the online guichet unique. Opening a French bank account is often the slowest step. Watch where you take decisions: managing from abroad can make the company taxable in your country of residence.

How much capital do I need to start a company in France?

For a SAS, SASU, SARL or EURL, the amount is free and can be EUR 1, although that is not recommended. An SA needs at least EUR 37,000. At creation, SAS and SA founders pay in at least 50% of cash contributions, SARL and EURL founders at least 20%, with the balance due within five years.

How is a French company taxed in 2026?

A SAS, SARL or SA pays corporate income tax at 25%. Qualifying SMEs, with turnover up to EUR 10 million, fully paid-up capital and at least 75% individual ownership, pay 15% on the first EUR 42,500 of profit. Dividends paid to resident individuals bear the 31.4% flat tax, or the progressive scale after a 40% allowance on option.

What are the micro-entrepreneur limits in France for 2026?

For revenue received in 2026, the micro regime applies up to EUR 203,100 for sales of goods and accommodation, and EUR 83,600 for services and liberal professions. You leave the regime only if you exceed the limit two years in a row. Separately, the VAT franchise ends above EUR 85,000 for sales and EUR 37,500 for services.

Related guides

• Business expenses you can deduct in France
• Tax incentives for expats and digital nomads in France
• Specific taxes in France, including VAT
• The French tax system at a glance
• Business forms and self-employed statuses in Malta
• Legal forms of business in Austria
• All country tax guides

Sources

• Choisir la forme juridique de votre entreprise – Service-Public Entreprendre (DILA)
• Micro-entreprise: seuils de chiffre d'affaires – Service-Public Entreprendre (DILA)
• Régime micro-social: cotisations 2026 – Service-Public Entreprendre (DILA)
• Régime micro-fiscal et versement libératoire – Service-Public Entreprendre (DILA)
• Franchise en base de TVA – Service-Public Entreprendre (DILA)
• Impôt sur les sociétés: taux – Service-Public Entreprendre (DILA)
• Fiscalité de la SASU – Service-Public Entreprendre (DILA)
• Capital social: montant et dépôt – Service-Public Entreprendre (DILA)
• Guichet unique des formalités d'entreprises – INPI

This guide is general information, not personalised tax advice. See how we research and review.