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SLC-English> Company Formation in Europe> Company Formation in France > Sàrl instead of Limited
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Sàrl instead of “Limited vs. GmbH”?

Help in decision-making.

In the recent years, the German businessmen and promoters of companies have formed more than 30.000 „Private Limited Company”(Limited - Ltd.) and thus they reconfirmed the advertising predications of promoting agencies saying that it can be an alternative to the German „Gesellschaft mit beschränkter Haftung” (GmbH) selected as the basis for its business activities, whereby it is more convenient in terms of costs and the minimum basic capital of 1 £ instead of 25.000 EUR is required for foundation, and its management is trouble-free and besides this it is flexible as well. Each third promoter of some from 60.000 capital companies formed in 2005 has decided just for „non-bureaucratic and in costs advantageous model” of company; (Limited), so new 20.000 Limited were founded in 2005.

Just due to large number of Limited companies’ formation a question appears,
whether and what advantages actually exist when compared with GmbH and whether the French
„Société à Responsabilité Limitée” (Sàrl) represents a better alternative to the German

This should be analysed in the following text. Naturally, the explanation can not
be a substitution for any advisory, on the contrary, it contains only the instructions for individual
advisory discussion.

145 KB
Help in decision-making
by Eng.-Economist/Assessor jur. Dieter Polei
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