The SARL (Société A Responsabilité Limitée) used to be the most common legal form of company in France, before the SAS “dethroned” the SARL in terms of the number of company registrations in recent years.

The SARL requires at least two shareholders (like its variant, the SARLU) and a minimum capital of €1.

Partners’ liability is limited to their contribution to the share capital.

The company is managed by people appointed by the general meeting of shareholders, who are called directors. The manager administers the company and is theoretically responsible for its management; he or she may also be a shareholder.

The SARL (limited liability company) has lost popularity because of the administrative burden and cost associated with the compulsory social security contributions of the self-employed manager, unlike the SAS (and SASU) form, which do not have to bear this requirement.

A statutory auditor is required if the company meets two of the following conditions:

• it has more than 50 employees
• it has net sales in excess of €3.1 million or a balance sheet total in excess of €1.55 million.