What is an SLU (Single-Shareholder Limited Company) and when does it suit you

Many people think you need several partners to create a company. You don’t: the Single-Shareholder Limited Company (SLU) gives you an SL with just one shareholder, combining the asset protection of a company with full control of an individual business.

What exactly an SLU is

An SLU is a normal limited company in every way — same €1 minimum capital, same taxes, same procedures — with one difference: it has a single shareholder owning 100% of the shares. That single-shareholder status must be expressly recorded in the Mercantile Registry.

When it suits you

The SLU is ideal if you want to go solo but with limited liability: your personal assets stay separate from the business, something you don’t get as a self-employed autónomo. It is also the standard way to structure subsidiaries (a company creating another for a project) and to give a corporate image to an independent professional billing companies.

SLU-specific obligations

Two worth knowing: contracts between the sole shareholder and the company must be in writing and disclosed in the annual report, and losing single-shareholder status (if another shareholder joins) must be registered within the legal deadline. Simple formalities, but mandatory.

SLU or autónomo: the solo starter’s dilemma

If you bill little and withdraw everything to live on, staying autónomo remains simpler and cheaper. The SLU starts making sense with stable profit, when your activity carries asset risk, or when your clients (companies) prefer dealing with companies. The indicative threshold is the same as for the SL: from around €40,000-60,000 of annual net profit it is worth studying.

Informational content updated October 2026. This is not legal or tax advice.