Duration - Definition Continued - SARL (LLC) - #320-309*

A société à responsabilité limitée (SARL) or limited liability company (LLC) may be incorporated for a limited or unlimited period of time (Article 710-3 of the law of 10 August 1915 on commercial companies - the “Law”). The duration of the SARL may be extended under the conditions required when amending the articles of association.

References: Articles 710-3 of the Law of 1915; Complexity - Definition Continued - LLC (SARL), January 5, 2021, Bertrand Mariaux

Bertrand Mariaux, Avocat à la Cour, LL.M. (hons.)

Prestation de serment (Swearing-in oath): Luxembourg (2011), Certificat d’Aptitude à la Profession d’Avocat, École de Formation professionnelle des Barreaux de la Cour d’appel de Paris (2009), Bond University (LL.M. (distinct.), International Legal Practice, 2010), Université Sorbonne Paris Nord & University of Limerick (Master in European & International Law - major in economics, 2008), certified Expert in Microfinance (Frankfurt School of Finance & Management, 2015), social entrepreneurship (University of Oxford, 2015 & The Wharton School of Social Policy & Practice, 2014) and social & solidarity economy (International Labour Organization Academy - Social & Solidarity Economy, Organisation Internationale du Travail - Économie Sociale et Solidaire, 2017)

Two Closing Remarks - Definition - SARL (LLC) #320-309*

*Podcast #320:

YouTube Video 309| Two Closing Remarks - Definition - SARL (LLC) #320-309* . . . . . . . .

*YouTube Video 309|:

Bertrand Mariaux, Avocat à la Cour, LL.M. (hons.)

Prestation de serment (Swearing-in oath): Luxembourg (2011), Certificat d’Aptitude à la Profession d’Avocat, École de Formation professionnelle des Barreaux de la Cour d’appel de Paris (2009), Bond University (LL.M. (distinct.), International Legal Practice, 2010), Université Sorbonne Paris Nord & University of Limerick (Master in European & International Law - major in economics, 2008), certified Expert in Microfinance (Frankfurt School of Finance & Management, 2015), social entrepreneurship (University of Oxford, 2015 & The Wharton School of Social Policy & Practice, 2014) and social & solidarity economy (International Labour Organization Academy - Social & Solidarity Economy, Organisation Internationale du Travail - Économie Sociale et Solidaire, 2017)

Complexity - Definition Continued - LLC (SARL)

We mentioned previously that the limited liability company (LLC or société à responsabilité limitée (“SARL”) is less complex and less costly than the public limited company (société anonyme or SA).

However, since the law of 10 August 2016 (which has reformed the law of 10 August 1915 on commercial companies - the “Law of 1915”), the SARL has undergone a certain realignment with the regime applicable to public limited companies or SAs. Indeed, certain provisions were added for capital transactions (e.g. Article 710-25 of the Law of 1915 regarding the payment of interim dividends or Article 710-5 regarding the repurchase of shares).

References: Articles 710-25 and 710-5 of the Law of 1915 (as defined above); Limitation of Liability & Complexity (SARL) - Definition Continued, January 4, 2021.

Bertrand Mariaux, Avocat à la Cour, LL.M. (hons.)

Prestation de serment (Swearing-in oath): Luxembourg (2011), Certificat d’Aptitude à la Profession d’Avocat, École de Formation professionnelle des Barreaux de la Cour d’appel de Paris (2009), Bond University (LL.M. (distinct.), International Legal Practice, 2010), Université Sorbonne Paris Nord & University of Limerick (Master in European & International Law - major in economics, 2008), certified Expert in Microfinance (Frankfurt School of Finance & Management, 2015), social entrepreneurship (University of Oxford, 2015 & The Wharton School of Social Policy & Practice, 2014) and social & solidarity economy (International Labour Organization Academy - Social & Solidarity Economy, Organisation Internationale du Travail - Économie Sociale et Solidaire, 2017)

Contributor: Cédric Buisine, Avocat

Editor: Hannah Seulgee Jung

Limitation of Liability & Complexity - Definition Continued - SARL (LLC) - #319-308*

One of the main features of the limited liability company (LLC or société à responsabilité limitée (“SARL”) is the limitation of the liability of the partners of the company to the contributions made to the company. The shareholders are only liable up to the amount of their contributions.  The general pledge/security of the company's creditors (gage des créanciers sociaux) is constituted by the company's assets, excluding the personal assets of the shareholders (this is also known as “corporate veil”).

The SARL is less complex to operate and less costly, in terms of publication obligations, than the public limited company (société anonyme or SA).

References: What is a limited liability company? December 3, 2020, Bertrand Mariaux; Articles 710-1 et seq. of the law of 10 August 1915 on commercial companies as amended.

*Podcast #319:

Limitation of Liability & Complexity (SARL) - Definition Continued #319-308* *Article #319-308* *YouTube Video 308* . . . . . . . .

*YouTube Video 308|: 

Bertrand Mariaux, Avocat à la Cour, LL.M. (hons.)

Prestation de serment (Swearing-in oath): Luxembourg (2011), Certificat d’Aptitude à la Profession d’Avocat, École de Formation professionnelle des Barreaux de la Cour d’appel de Paris (2009), Bond University (LL.M. (distinct.), International Legal Practice, 2010), Université Sorbonne Paris Nord & University of Limerick (Master in European & International Law - major in economics, 2008), certified Expert in Microfinance (Frankfurt School of Finance & Management, 2015), social entrepreneurship (University of Oxford, 2015 & The Wharton School of Social Policy & Practice, 2014) and social & solidarity economy (International Labour Organization Academy - Social & Solidarity Economy, Organisation Internationale du Travail - Économie Sociale et Solidaire, 2017)

Contributor: Cédric Buisine, Avocat

Editor: Hannah Seulgee Jung

Legal Framework - LLC (SARL) - #318-307*

The société à responsabilité limitée (SARL) or limited liability company (LLC) is governed by the law of 10 August 1915 on commercial companies as amended (the “Law of 1915”) and in particular by the Articles 710-1 to 710-31 of the Law of 1915 and “Titre VII - Des sociétés à responsabilité limitée”.

References: Articles 710-1 to 710-31 of the Law of 1915; May a Limited Liability Company (SARL) Have One Sole Shareholder? December 8, 2020, Bertrand Mariaux.

*Podcast #318:

Legal Framework - LLC (SARL) #318-307* *Article #318-307* *YouTube Video 307* . . . . . . . .

*YouTube Video 307|: 

Contributor: Cédric Buisine, Avocat

Editor: Hannah Seulgee Jung

Bertrand Mariaux, Avocat à la Cour, LL.M. (hons.)

Prestation de serment (Swearing-in oath): Luxembourg (2011), Certificat d’Aptitude à la Profession d’Avocat, École de Formation professionnelle des Barreaux de la Cour d’appel de Paris (2009), Bond University (LL.M. (distinct.), International Legal Practice, 2010), Université Sorbonne Paris Nord & University of Limerick (Master in European & International Law - major in economics, 2008), certified Expert in Microfinance (Frankfurt School of Finance & Management, 2015), social entrepreneurship (University of Oxford, 2015 & The Wharton School of Social Policy & Practice, 2014) and social & solidarity economy (International Labour Organization Academy - Social & Solidarity Economy, Organisation Internationale du Travail - Économie Sociale et Solidaire, 2017)

Corporate Object - LLC (SARL) - #317-306*

A société à responsabilité limitée (“SARL”) or limited liability company (LLC) may pursue any corporate object.

Insurance, savings, capitalisation companies or credit institutions may not be incorporated as LLCs. 

References: Article 710-1(2) of the law of 10 August 1915 on commercial companies as amended; May an LLC (SARL) Have One Sole Shareholder? December 8, 2020, Bertrand Mariaux

*Podcast #317:

Corporate Object - LLC (SARL) #317-306* *Article #317-306* *YouTube Video 306* . . . . . . . .

*YouTube Video 306|: 

Contributor: Cédric Buisine, Avocat

Editor: Hannah Seulgee Jung

Bertrand Mariaux, Avocat à la Cour, LL.M. (hons.)

Prestation de serment (Swearing-in oath): Luxembourg (2011), Certificat d’Aptitude à la Profession d’Avocat, École de Formation professionnelle des Barreaux de la Cour d’appel de Paris (2009), Bond University (LL.M. (distinct.), International Legal Practice, 2010), Université Sorbonne Paris Nord & University of Limerick (Master in European & International Law - major in economics, 2008), certified Expert in Microfinance (Frankfurt School of Finance & Management, 2015), social entrepreneurship (University of Oxford, 2015 & The Wharton School of Social Policy & Practice, 2014) and social & solidarity economy (International Labour Organization Academy - Social & Solidarity Economy, Organisation Internationale du Travail - Économie Sociale et Solidaire, 2017)

May an LLC Have One Sole Shareholder? - #316-305*

Indeed a limited liability company (LLC, or société à responsabilité limitée) may have only one shareholder (associé) at incorporation.

Also, neither the holding of all the shares of the LLC in the hands of a sole shareholder nor her or his death per se constitutes a cause for dissolution. 

References: Article 710-1(2) of the law of 10 August 1915 on commercial companies as amended; What is a limited liability company? December 3, 2020, Bertrand Mariaux.

*Podcast #316:

May an LLC Have One Sole Shareholder? #316-305* *Article #316-305* *Podcast #316 *YouTube Video 305* . . . . . . . .

*YouTube Video 305|: 

Contributor: Cédric Buisine, Avocat

Editor: Hannah Seulgee Jung

Bertrand Mariaux, Avocat à la Cour, LL.M. (hons.)

Prestation de serment (Swearing-in oath): Luxembourg (2011), Certificat d’Aptitude à la Profession d’Avocat, École de Formation professionnelle des Barreaux de la Cour d’appel de Paris (2009), Bond University (LL.M. (distinct.), International Legal Practice, 2010), Université Sorbonne Paris Nord & University of Limerick (Master in European & International Law - major in economics, 2008), certified Expert in Microfinance (Frankfurt School of Finance & Management, 2015), social entrepreneurship (University of Oxford, 2015 & The Wharton School of Social Policy & Practice, 2014) and social & solidarity economy (International Labour Organization Academy - Social & Solidarity Economy, Organisation Internationale du Travail - Économie Sociale et Solidaire, 2017)

What is a limited liability company? - #315-304*

As we addressed the question in French in our previous article, let’s now continue in English.

A limited liability company (“LLC”) or private limited company (“société à responsabilité limitée”) has three main features:

1. The LLC is the company in which a limited number of partners contribute a determined amount; 

2. The partners’ corporate units of the LLC are exclusively represented by non-negotiable financial securities; and

3. These financial securities may be transferred only in accordance with the law.
   

References: Article 710-1(1) of the law of 10 August 1915 on commercial companies as amended; Qu’est-ce qu’une société à responsabilité limitée? - #314-303* , December 1, 2020, Bertrand Mariaux.

*Podcast #315:

315-304* What is a limited liability company? *Article #314-303* *Podcast #314 *YouTube Video 303* . . . . . . . .

*YouTube Video 304|: 

Contributor: Cédric Buisine, Avocat

Editor: Hannah Seulgee Jung

Bertrand Mariaux, Avocat à la Cour, LL.M. (hons.)

Prestation de serment (Swearing-in oath): Luxembourg (2011), Certificat d’Aptitude à la Profession d’Avocat, École de Formation professionnelle des Barreaux de la Cour d’appel de Paris (2009), Bond University (LL.M. (distinct.), International Legal Practice, 2010), Université Sorbonne Paris Nord & University of Limerick (Master in European & International Law - major in economics, 2008), certified Expert in Microfinance (Frankfurt School of Finance & Management, 2015), social entrepreneurship (University of Oxford, 2015 & The Wharton School of Social Policy & Practice, 2014) and social & solidarity economy (International Labour Organization Academy - Social & Solidarity Economy, Organisation Internationale du Travail - Économie Sociale et Solidaire, 2017)