Legal Structure: Buying a SARL vs. an SAS for Foreign Investors
Legal Structure: Buying a SARL vs. an SAS for Foreign Investors
For international business buyers, what are the advantages and disadvantages of acquiring a French SARL versus an SAS?
1 Answer
For an international buyer, a French SARL (limited liability company) offers clear, structured rules, simpler governance, and stronger protections for minority shareholders, which feels reassuring if you want predictability and less drama in day-to-day decisions. Its downside is less flexibility in profit distribution and corporate arrangements. An SAS (simplified joint-stock company) gives maximum flexibility in governance, profit-sharing, and bringing in investors, which can feel exciting if you want to tailor the structure but that freedom also means fewer built-in protections, so mistakes or disputes can be stressful. Essentially, SARL is comfort and predictability; SAS is freedom and customization, but with a bit more emotional risk.