The glossary to understand and take action

SARL

An SARL is a private limited liability company whose organisation and shareholders’ rights are governed by law and the articles of association.

Notion comptable, fiscale ou juridique · Luxembourg Fiduciaries Editorial Team · Reviewed on

Understand the scope

Definition and points to distinguish

The limited liability of shareholders must be distinguished from personal commitments and management liabilities. A standard SARL has incorporation requirements that differ from those of an SARL-S.

In your file

What this changes in practice

An SARL is a company whose capital is divided into shares and whose operation depends on the law and the articles of association. The matter is not limited to capital: the powers of managers, shareholders’ rights, collective decisions and transfer conditions must be understood. Limited liability does not exempt the manager from their obligations and does not override any personal guarantee they may have given.

A scenario to help you understand

Educational example

Two shareholders hold an SARL in equal shares. They verify how decisions will be made and how to resolve a disagreement before the first management difficulty arises.

Fictitious situation, presented to illustrate the concept.

Prepare for what comes next

Points to check

  • Lire les règles de gérance
  • Vérifier les décisions réservées aux associés
  • Anticiper la cession et les désaccords

The practical question

Find out more

La responsabilité limitée protège-t-elle de tout risque personnel ?

Elle définit un cadre, mais ne signifie pas absence de toute exposition du dirigeant ou de l’associé. Des engagements personnels, garanties ou responsabilités propres peuvent exister. Lisez les contrats de financement et distinguez le rôle d’associé de celui de gérant. Le choix d’une SARL ne dispense pas d’une gestion conforme ni du suivi des obligations de la société.

Connecting concepts

Terms to know as well

Continue with the concepts, contacts and procedures related to this topic.

ShareholderA shareholder holds rights in a company by virtue of their participation in the capital or under the rules of the relevant legal form.ManagerThe manager performs the management and representation functions assigned to them within the company.Articles of associationThe articles of association are the company's constitutive rules, covering in particular its purpose, capital and operation.Approval for the transfer of sharesApproval required for certain transfers of shares to a new shareholder.Legal formThe legal form defines the legal framework for the activity: organisation, liability and relations between participants.SARL-SThe SARL-S is a simplified variant of the SARL, subject to specific conditions concerning, in particular, the shareholders, the activity and the capital.

Put it into practice

Explore further with our guides

Practical guideSetting up a business in Luxembourg: choosing the legal form and preparing the launchPractical guideSARL in Luxembourg: operation and decisions of the partnersPractical guideSOPARFI in Luxembourg: how it works, obligations and points to watchPractical guideSetting up an SARL in Luxembourg: steps and documents to prepare

Sources and verification

References consulted on 20 September 2026. Official procedures specify the applicable conditions and exceptions.

This guide explains a general process. The applicable rules depend on your situation; it does not constitute personalised advice. Report a correction.

A definition gives you a reference point. To examine your situation, clarify your question with a professional.