The creation of a business can be done in different legal forms. From the micro-enterprise regime (ex-autoentrepreneur) to the public limited company, French law offers very different solutions. The sole proprietorship with limited liability (EIRL) constitutes an intermediate status …
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Why create an EIRL?
The status of sole proprietorship with limited liability (EIRL) is ideal if you wish to carry out an activity alone, without having the project of integrating other partners. This form of business allows separate professional and personal assets of the entrepreneur to provide him with some security in the event of company bankruptcy. The EIRL is only intended for natural persons such as traders, craftsmen, farmers and the liberal professions. In practice, it is not used much. According to INSEE, in 2012, the number of EIRL creations was 4,041 out of 550,000 businesses created (all legal forms included).
However, EIRL provides real benefits. In addition to protecting your personal wealth, it allows you, optionally, to opt for corporate tax. This saves the heavy taxation of profits with the income tax system. In addition, the creation of an EIRL allows you to change your operating mode at the social level: social contributions are no longer calculated on profit, but on your remuneration.
What are the formalities for creating the EIRL?
Setting up an EIRL is simple and free. The formalities are not very restrictive, just file a declaration of asset allocation. However, you should also consider opening a professional bank account in the name of the incorporated company.
The documents essential for the creation of the EIRL are in particular the declaration of allocation of goods, the evaluation report for goods whose value exceeds 30,000 euros, a copy of the title of occupation of the premises if there acts of the living room, a printed P0 accompanied by printed P (specific to EIRL). You will also have to attach a copy of the identity document, a declaration on the honor of non-conviction or a certificate of parentage.
For goods whose value exceeds 30,000 euros, it is indeed necessary to do so assess by an auditor or by an accounting professional. The report resulting from this assessment must be annexed to the declaration of allocation of these assets. A notarial act is also compulsory if you want assign real estate to your EIRL.
The EIRL creation dossier must then be submitted to the CFE competent who will be responsible for communicating it to the structure corresponding to the type of activity you have chosen. It can be the trade and companies register (RCS) if the activity is commercial, the trades directory (RM) if it is artisanal or the registry of the commercial court if the activity is liberal.
To complete the formalities for creating your EIRL, you will simply have to take care of the transplant fees. There is no need to publish a notice of incorporation in a legal newspaper for this type of business. However, you will have to add the notary fees in the event that you affect a property since the notarial act is compulsory for this. The notary will take care of the publicity of the declaration of allocation at the mortgage office.
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