SRL vs PFA

A PFA is best for a solo game developer, freelancer, consultant, sound designer, artist, or programmer who wants to earn income directly from their own work.

An SRL is best when you want to build a studio, work with a team, own IP through a company, or prepare for publishers, investors, and larger contracts.

A PFA is usually faster and cheaper to set up, with less paperwork and fewer formal requirements at the beginning.

An SRL takes more effort to set up because it is a separate company, but it gives you a stronger business structure from the start.

A PFA has simpler accounting, and in many cases the owner can keep the required records themselves or with limited accountant support.

An SRL usually needs a monthly accountant because reporting is more formal, especially when you have salaries, dividends, expenses, VAT, or multiple contracts.

PFA taxes depend heavily on income level, deductions, and social contribution thresholds, so the best approach is to check the calculator.

SRL taxes depend on revenue, profit, dividends, salary structure, and whether the company is taxed as micro or profit tax, so the calculator is also the best starting point.

With a PFA, the activity is tied directly to you, so in some situations your personal assets can be exposed if there are debts, disputes, or contract problems.

With an SRL, the company is legally separate from you, so liability is usually limited to the company's assets, which makes it safer for larger business activity.

A PFA can hire people, but it is limited to a maximum of 5 employees, which makes it less suitable for building a larger studio.

An SRL can hire employees without the same small-business limitation, making it much better for scaling a team.

A PFA is not a good structure for co-founders because there is no clean share ownership system between multiple people.

An SRL is designed for associates and shares, so it is much easier to split ownership, responsibilities, and future profits between founders.

With a PFA, the game IP is usually connected to the individual, which can work for solo projects but can become messy with teams, publishers, or investors.

With an SRL, the game IP, contracts, assets, and revenue can belong to the company, which is cleaner for commercial games and long-term studio value.

A PFA can be used for platforms like Steam, Apple, Google, and itch.io, so platforms are not automatically a reason to choose SRL.

An SRL can also be used for platforms, but its bigger advantage is that it looks cleaner and more professional for commercial-scale operations.

A PFA can sign contracts, but publishers may see it as more limited or less scalable, especially for larger deals.

Publishers usually prefer SRL structures because they provide clearer company ownership, contracts, liability separation, and long-term business continuity.

A PFA is not ideal for investors because there are no company shares to invest in and no clean way to structure ownership.

An SRL is much better for investment because investors can understand shares, ownership percentages, company valuation, and exit potential.

A PFA can deduct business expenses depending on the tax system used, but it is usually better for simpler activity and fewer moving parts.

An SRL is usually cleaner for managing company expenses such as software, hardware, contractors, marketing, travel, salaries, and outsourced work.

A PFA is good when you want to keep things simple, earn money from your own work, and avoid unnecessary administration.

An SRL is better when you want to build something bigger than yourself: a studio, a portfolio of games, a team, a brand, or a company that can grow.