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The Société à responsabilité limitée is the counterpart from France to the limited liability company, ie the limited liability company. The legal form Société à responsabilité limitée is usually concluded with S.à r.l., Sàrl or S.A.R.L. Abbreviated. In contrast to the GmbH, however, it does not require a prescribed minimum capital. This is also the reason why, in the past, it has enjoyed an extremely great popularity amongst founders.
S.A.R.L. Is the legal form of the liability-limited company in France and is created by the establishment of a company charter. S.A.R.L. Is registered with the French Trade Register, the so-called “Registre du commerce et des sociétés” (RCS). This French legal form must consist of at least two persons and requires the formation of a shareholder agreement. This contract specifies, inter alia, the name of the company, its place of business and the purpose it is intended to pursue. In addition, the founders are to provide information on which deposits have been made and how the company shares have been distributed. After the documents have been submitted to RCS, S.A.R.L. But is only legally valid if it has been recorded in the commercial register.
The Société à responsabilité limitée is therefore so popular, as, in contrast to the limited liability company, there is no minimum capital which must be paid by the shareholders. The deposit of one euro is quite sufficient. The liability of the shareholders is with S.A.R.L. Also limited to their contribution. This means that they do not have to be liable to their private assets in this type of legal form, but only to the amount they have invested as part of the formation.
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