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A société à responsabilité limitée (SARL, S.à r.l. and similar; lit. 'society with limited responsibility') is a form of private company that exists mainly in French-speaking countries, such as France, Luxembourg, Monaco, Algeria, Morocco, Tunisia, Madagascar, Lebanon, Switzerland (where it is also designated by GmbH or Sagl), and Belgium (where, since 1 May 2019, it is also designated by besloten vennootschap and abbreviated as SRL). The primary purpose of a SARL is to conduct commercial activity.
In the Canadian province of Alberta, a similar corporate entity exists, known as "Société à Responsabilité Limitée" (SRL). This entity is recognized under the Alberta Partnership Act, allowing free trade of SRL shares akin to Canadian LLP shares, without the restrictions of European SRLs.[1]
Proprietary interests in a SARL are represented by shares. They are not freely transferable; unless the intended recipient is a spouse, descendant, or other close relative, transfers require the agreement of half of the shareholders (since Ord. 2 mars 2004).
One of the primary advantages of a SARL is limited liability; an owner or other investor in the company cannot be liable for more than they have contributed to the company's capital. In this respect, a SARL is largely equivalent to a British limited company or American limited liability company.
References
edit- ^ "Alberta Partnership Regulation, Alta. Reg. 105/2009". CanLII. Retrieved October 14, 2023.
- "Connaître les caractéristiques d'une société à responsabilité limitée (SARL) - guichet.lu // Luxembourg - Sociétés de capitaux". Archived from the original on 2012-04-26. Retrieved 2012-05-03.