Difference between SA and SARL
Switzerland has been one of the top offshore business destinations that are widely preferred by the business owners and investors.
The tax-haven jurisdiction holds a high reputation and prestige that provides considerable flexibility to the business investors who are planning to invest in the offshore business.
The official language ideally accepted in this jurisdiction is German, French, Romansh, and Italian.
Under the French Law, the widely chosen business forms in the jurisdiction are Société Anonyme (Public Limited Company or PLC) and Société à Responsabilité Limitée (Limited Liability Company).
If you are planning to set up an offshore company in Switzerland, then understanding the difference would turn out to be helpful for you. Let’s have a look at the comparison table below:
| Basis | Société Anonyme (S.A.) | Société à Responsabilité Limitée (S.A.R.L) |
|---|---|---|
| Type of Company | Public Limited Company (PLC) | Limited Liability Company (LLC) |
| Minimum Number of Partners | Two(2) [Unlisted Company] Seven (7) [Listed Company] | Two(2) |
| Maximum Number of Partners | Not Specified | One hundred (100) |
| Share Capital | Above 37,000 Euros | Above 1 Euro |
| Tax System Followed | Corporation Tax | Corporation Tax |
| Type of Contributions | In-cash and in-kind | In-cash, in-kind and in-industry |
| Payment of Dividends | Gets determined in the General Meeting of the Shareholders | Gets determined by the number of shares held by each partner |
| Ideal For | Profit-oriented business | SMEs and Family Businesses |
| Presence of Local Director | Director with individual signing powers must be domiciled in Switzerland | Director with individual signing powers must be domiciled in Switzerland |
| The Panel of Directors is Called | Conseil d’administration | Collège de gérants |
| Approx. Business Entities in Switzerland | 112,518 | 92,000 |
| Possibility of getting listed in the Stock Exchange | Yes | No |
| The nominal value of shares | Minimum of 1 cent | Minimum of 100 francs |
| Registration with Registrar | Upon establishment, needs to be registered in the commercial register | Upon establishment, requires to be recorded in the trade register |
| The Business Entity Gets Managed by | The Board of Directors | One or more manager [ can be a partner or even a third party] |
| The Extent of Partner’s Liability | Limited to the share capital | Limited to the shares |
| The Extent of Responsibility of Leaders | Civil and Criminal Liability of the Manager(s) | Civil and Criminal Liability of the Manager(s) |
| Transmission of Business | By transfer of shares, unless provided in the Articles of Association | By transfer of shares |
| Process of Transfer of Shares | Simple and straightforward | The sales contract of shares needs to be signed before a notary |
| Disclosure of Shareholder’s Name | Not disclosed (Remains Anonymous | Names of the shareholders appear in the local commercial register |
| Conversion of Business Entity | Can be converted to SARL at any point | Can be converted to SA at any point |
Setting up an offshore business in Switzerland is a good and smart move when it comes to investments. Business investors at a global level prefer to proceed ahead with the incorporation of a Swiss offshore company with the guidance of business experts to tackle the documentation process.
At Business Setup Worldwide, we take care of the offshore company proceedings to assist our business investors in establishing their business roots.
[Read more: Core Reasons for Hiring an Offshore Business Consultant]
Our expert team will help you to assist you in setting up your Société Anonyme or Société à Responsabilité Limitée company in Switzerland.
For more details, feel free to have a word with our business advisors. Contact us today-we’d be glad to assist!
