EURL to SASU: Steps, Costs and Key Watchpoints in 2026

Converting an EURL — a single-member French limited company (SARL structure), where the sole manager is taxed under the self-employed regime — to a SASU — a single-member simplified joint-stock company (SAS structure), where the president is treated as an assimilated employee under the general social security regime — is an operation we handle with increasing frequency. It typically arises when a founder's activity has stabilised, when remuneration becomes more structured, or when a future investor or co-founder enters the picture.

This is neither a new incorporation nor a dissolution. It is a legal transformation: the same legal entity changes its form. That makes it administratively simpler than starting from scratch, but more complex than a change of name. The real triggers are rarely cosmetic. They lie in what the transformation actually changes: the director's social security regime, the flexibility of the company's governance framework, and — critically — how dividends are treated for tax and social contribution purposes.

Short answer: converting an EURL to a SASU requires a formal legal procedure (amended articles of association, filing via the INPI single-window platform, publication in a legal gazette), with a total cost typically in the range of €1,500 to €3,000 depending on complexity. The real impact is social and fiscal: the director moves from self-employed (TNS) status to assimilated employee status, dividends paid by a SASU no longer attract social contributions (only the flat tax, PFU, at 31.4% in 2026), and the company gains greater statutory flexibility. It is well worth doing when the business case is clear; it can be costly and counterproductive when pursued for a single, isolated reason.

In most files we advise, the motivation is rarely one-dimensional. Three reasons consistently appear, often in combination.

The director's social regime. In an EURL, the sole managing partner is a TNS (travailleur non salarié — self-employed worker, under the Sécurité sociale des indépendants). In a SASU, the president is an assimilated employee under the French general social security regime (excluding unemployment insurance). The switch brings broader pension coverage and better disability/health protection, but at a significantly higher social cost — approximately 70 to 80% of net salary in social charges versus 30 to 45% under the self-employed regime. For a director building pension entitlements comparable to a senior employee, or one who requires robust disability cover, this trade-off often justifies the conversion.

The remuneration/dividend arbitrage. This is the point most often misunderstood. In an EURL taxed under corporate tax (IS), the portion of dividends exceeding 10% of the share capital (plus share premiums and director's current account) is subject to self-employed social contributions — not just the flat tax. In a SASU, dividends paid to the president carry no social contributions at all: only the PFU of 31.4% applies (12.8% income tax + 18.6% social levies, following the 1.4-point increase in CSG on capital income introduced by the Social Security Finance Act for 2026, effective 1 January 2026). For a director who distributes a material share of profits, this structural difference can be decisive.

Governance and future capital opening. A SASU's articles of association can be drafted almost entirely freely, unlike an EURL whose governance is constrained by the SARL statutory framework. The SASU is also far easier to convert into a multi-shareholder SAS when an investor, operational partner, or seed fund comes on board. If your project contemplates any future fundraising, even at a horizon of two to three years, the SASU is structurally better suited.

Sources: service-public.fr — EURL; SASU; SASU social contributions; SARL/EURL social contributions.

The conversion is a formal legal procedure carried out on the existing legal entity. It does not create a new company, does not trigger a deemed disposal of assets, and does not require winding up. The sequence below reflects current practice under French law.

1. Preliminary diagnosis: assess the real motivation for the conversion; model the social impact (self-employed to assimilated employee); run fiscal simulations (dividend treatment, IS/IR options); verify the impact on the director's net cash flow and personal finances.
2. Review of accumulated reserves and prior results: reserves built up in the EURL carry over into the SASU. Their treatment — whether to roll them into retained earnings, or to distribute them beforehand if the tax situation makes that preferable — must be decided and documented before the conversion date.
3. Drafting new articles of association: EURL articles follow the SARL model, which is largely prescribed by statute. SASU articles follow the SAS model, which is almost entirely freely drafted. The rewrite is substantive: governance structure, president's powers, delegation rules, share transfer conditions, and any provisions anticipating a future capital opening.
4. Sole shareholder's decision: the sole shareholder records the decision to convert by written act (procès-verbal). No general meeting is required (sole shareholder), but the procedural form must be observed.
5. Publication of a notice in a legal gazette: mandatory, with mention of the conversion, the new legal form, and the new director title.
6. Filing with the INPI single-window platform (formalites.entreprises.gouv.fr): the dossier includes the conversion resolution, the new articles of association, the legal gazette publication certificate, and the president's identification. The Kbis (company registration certificate) is updated automatically.
7. Post-conversion updates: bank (SEPA mandates, delegations), ongoing contracts (review change-of-form clauses), DSN payroll declarations (switch to assimilated employee regime), URSSAF (deregistration from self-employed regime, registration with the general regime), group health and disability cover to be set up if required.

Sources: Modifying company articles; Single-window formalities.

Costs depend on the complexity of the file. A straightforward conversion — simple articles, clean accounting position, no prior reserve distribution — costs less than one requiring a full remuneration restructure, a review of accumulated reserves, or deeply bespoke articles.

These figures are indicative. They do not include advisory fees related to the director's remuneration restructuring or reserve management, which may represent a separate line. Request a clear written quote before committing.

Social regime#

The change takes effect on the conversion date. The self-employed manager is deregistered from the SSI (Sécurité sociale des indépendants) and enrolled with the general regime as an assimilated employee. Self-employed contributions cease once remuneration is no longer paid under that regime. Note, however, that self-employed contribution adjustments may arise on prior years' income — French self-employed contributions are calculated with a two-year lag and then regularised against actual income.

Dividend treatment#

This is often the deciding factor. In an EURL taxed under IS, the share of dividends exceeding 10% of share capital (plus share premiums and director's current account) is subject to self-employed social contributions — on top of the flat tax. In a SASU, dividends paid to the president carry no social contributions: only the PFU of 31.4% applies from 1 January 2026. The option to be taxed at the progressive income tax scale remains available (40% dividend allowance, partial CSG deductibility) — this may be advantageous for directors in lower income tax brackets.

Source: PFU rate update; SASU taxation; EURL taxation.

Corporate tax#

The conversion does not automatically change the tax regime if the EURL was already taxed under IS. If the EURL was taxed under income tax (the default, without an IS election), conversion to SASU triggers IS by default — unless the director elects for the temporary IR option under the SAS rules, subject to eligibility conditions. This point warrants a simulation before proceeding.

Assumption: sole director, profit available before remuneration = €100,000.

This illustration is simplified. It does not account for the share capital amount (which determines the 10% threshold), the director's personal tax situation, or family circumstances. It shows the logic of the arbitrage, not a guaranteed outcome. A personalised simulation is essential before making any decision.

This is the question we ask systematically before engaging any formalities.

Do not convert if:

• The sole motivation is to avoid minimum self-employed contributions. The gain is often limited, and the higher social cost of the assimilated employee regime can be worse if remuneration is modest.
• You have no visibility on future remuneration: converting to assimilated employee status with irregular income creates significant cash-flow pressure from employer and employee social charges.
• The conversion is being considered a few months before a planned sale or dissolution: the cost is not justified.
• Your self-employed profile fits your current activity level and your social protection needs are adequately met.

From files we have handled, the most frequent mistakes are: underestimating the real cost of assimilated employee contributions on a moderate salary, failing to address accumulated EURL reserves before conversion, and drafting overly generic SASU articles that provide no useful provisions for a future capital opening.

Between the conversion date and effective enrolment with the general regime, an administrative lag sometimes exists. During this window, the director's social cover may be uncertain. We recommend anticipating this gap with URSSAF and, where appropriate, maintaining supplementary cover temporarily. This point rarely appears in standard guides — yet it can have practical consequences in the event of illness or accident in the weeks following conversion.

• PFU at 31.4% from 1 January 2026 (1.4-point increase in social levies on capital income, Social Security Finance Act 2026): the dividend arbitrage remains favourable in a SASU structure, but the flat tax has edged up from 30% in 2025.
• Minimum self-employed contributions in EURL: even with no remuneration, minimum contributions are due. In a SASU, no contributions arise if no salary is paid — a meaningful advantage in early-stage or low-activity periods.
• Share capital release: the conversion may require attention if the EURL's capital was only 20% paid-up (the SARL minimum). The SAS rule requires 50% at incorporation — verify your position at the conversion date.

• Full social impact assessment (real cost of assimilated employee regime at your target remuneration level)
• Comparative fiscal simulation (IS, dividends, PFU vs TNS contributions on excess dividends)
• Review of accumulated reserves and prior results in the EURL
• Verification of share capital release status
• Drafting of new SASU articles tailored to your project (governance, future capital provisions)
• Conversion budget (legal gazette + filing fees + professional fees)
• URSSAF timeline: SSI deregistration and general regime enrolment
• Updates: bank, contracts, payroll (DSN), disability and health cover

For a deeper comparison of the two structures, see SASU vs EURL and SASU: advantages and disadvantages. If your entity is a multi-member SARL, our guide Converting a SARL to a SAS covers the same formalities with additional considerations. For the social cost of a SASU president after conversion, see SASU social charges. Our legal advisory service in Paris and company formation support cover all formalities end to end.

Considering a conversion from EURL to SASU? Before committing to any formalities, we model the real social and fiscal impact for your specific situation and handle the drafting of new articles.

This article reflects the rules in force as of 1 January 2026 (PFU 31.4%, LFSS 2026). It is for information purposes only and does not replace a personalised analysis of your situation. Converting an EURL to a SASU has legal, social and fiscal consequences that depend on your specific circumstances — professional advice is recommended before taking any decision.