SARLs

SARLs, short for Société à responsabilité limitée, are a class of private limited liability companies used in several Francophone jurisdictions, most notably France, Belgium, and Luxembourg. They provide a separate legal personality and are designed for small to medium-sized businesses that require limited liability for owners.

Key features include limited liability for members, with liability generally limited to their contributed capital. The company’s capital is divided into shares, owned by the partners. The number of partners and the rules governing ownership vary by country; in France, a SARL typically has 2 to 100 associates, while a single-member form called an EURL exists. Capital requirements are usually modest or symbolic in many jurisdictions, though some countries set minimum thresholds.

Management is usually carried out by one or more managers or gérants who act on behalf of the company. Governance is defined in the statutes and may require approval of partners for significant decisions. Transfers of shares are commonly subject to restrictions to protect existing control, and the articles often include procedures for admitting new partners and handling deadlock.

Tax and regulation differ by country. In many places, the SARL is subject to corporate income tax on profits and must file annual accounts with the relevant commercial registry; some jurisdictions or specific regimes allow different tax treatment for small entities or single-member variants. The SARL structure is widely used for family businesses and start-ups seeking limited liability combined with flexible management and control features.