Chapter VI: Protection of sole traders

Where all or part of the assigned assets are joint or undivided assets, the sole trader provides proof of the express agreement of his spouse or co-tenants and of their prior information about the rights of the creditors mentioned in 1° of I of article L. 526-12 on the affected assets. The same joint or undivided property or the same part of a joint or undivided real estate asset may…

I.-The composition of the affected assets may be relied on ipso jure against creditors whose rights arose after the declaration referred to in article L. 526-7. By derogation from articles 2284 and 2285 of the Civil Code:

The professional activity to which the assets are assigned is subject to independent accounting, established under the conditions defined in the articles L. 123-12 à L. 123-23 et L. 123-25 to L. 123-27. By way of derogation from Article L. 123-28 and the first paragraph of this article, the professional activity of persons benefiting from the schemes defined in articles 50-0, 64 bis and 102 ter of the General Tax…

The balance sheet of the individual limited liability entrepreneur or, where applicable, the document or documents resulting from the simplified accounting obligations provided for in the second paragraph of article L. 526-13 are filed each year with the register to which the individual private limited company belongs pursuant to article L. 526-7 to be appended thereto. In the event of non-compliance with the obligation mentioned in the first paragraph, the…

In the event that the individual limited liability entrepreneur renounces the appropriation or in the event of his death, the declaration mentioned in Article L. 526-7 ceases to have effect. However, in the event of cessation, concomitant with the waiver, of the professional activity to which the assets are assigned or in the event of death, the creditors mentioned in 1° and 2° of I of Article L. 526-12 retain…

I. – The individual entrepreneur with limited liability may sell for valuable consideration, transfer free of charge inter vivos or contribute to a company the entirety of his earmarked assets and transfer ownership under the conditions set out in II and III of this article without proceeding with its liquidation. II. – The sale for valuable consideration or the transfer free of charge inter vivos of the earmarked assets to…

The individual entrepreneur with limited liability determines the income he pays into his unaffected assets.

Subject to the provisions of Article L. 123-54, the tariff of formalities for filing and transferring the declarations and recording the particulars referred to in this section and for filing and transferring the annual accounts or the document or documents resulting from the simplified accounting obligations provided for in the second paragraph of article L. 526-13 is set by decree. The declaration formality mentioned in article L. 526-7 is free…

The Public Prosecutor’s Office and any interested party may ask the president of the court ruling in summary proceedings to enjoin, subject to a fine, a sole trader with limited liability to include in all his acts and documents his name, immediately and legibly preceded or followed by the words: “Sole trader with limited liability” or the initials: “EIRL”.

The conditions for the application of this section shall be laid down by decree in the Conseil d’Etat.