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Creating a company is a process that can be cumbersome and complex. To commit only part of your assets, the EIRL is a good solution.


Since January 2011, there is a new status for the company: the sole proprietorship with limited liability (EIRL). Previously, when an entrepreneur had debts related to his company, all his assets were committed, including his personal assets. This new system allows him to allocate specific assets to his professional activity, without forcing him to create a company, the management of which could be cumbersome and complex.


What advantages?

This new system is aimed at any individual entrepreneur, whether a self-employed entrepreneur, a craftsman, a merchant or a liberal professional. The professional can choose to adopt this status, either at the creation of his activity, or during the exercise. This new system will allow him to create a specific heritage that will be dedicated to his professional activity. He will be able to choose what he wants to put in this professional heritage: leasehold rights, goodwill, patents, etc. The main advantage of this system is that creditors will only be able to take legal action against the heritage. chosen by the professional. Each month,


The formalities :

The individual entrepreneur must file a declaration of assignment, the recipient of which varies according to the type of activity carried out. You must attach to this declaration a precise descriptive statement of the assets that you wish to allocate to the activity. For goods over 30,000 euros, they must be valued by a chartered accountant or an auditor. If one wishes to assign real estate to the company, the declaration must be made by notarial deed and published in the mortgage registry.


What if I already have debts?


In principle, the declaration is not retroactive. Previous debts can be sought on professional assets, but also on personal assets. However, it is possible to provide that it will be retroactive. In this case, it will be necessary to mention it expressly in the declaration and to inform the creditors concerned. The latter may, if they wish, refuse the limitation of their pledge and must, in this case, seize the judge.


What obligations after the declaration?


There are three main obligations: the individual entrepreneur must keep independent accounts for his professional activity and open a bank account dedicated to this activity. The trade name must be accompanied by the acronym EIRL or “individual company with limited liability”. Finally, each year, the entrepreneur will have to file accounts and this publicity of the accounts will be valid for updating his professional assets.


DAMY Law Firm , Nice, EIRL, Update 2022