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!