Section 2: Sole traders with limited liability

To carry on his business as a sole trader with limited liability, the sole trader assigns to his professional activity assets separate from his personal assets, without creating a legal entity, under the conditions set out in article L. 526-7. These assets are made up of all the property, rights, obligations or securities held by the sole trader and required to carry out his business activity. It may also include…

The creation of the earmarked assets is the result of a declaration made: 1° For a commercial activity, to the trade and companies register with which the trader is required to register; 2° For an activity in the trades and crafts sector, in the national register of companies with which the head of the business is required to register in this capacity; 3° For activities as a commercial agent, in…

I.-When setting up the assets and liabilities affected, the sole trader mentions the nature, quality, quantity and value of the assets, rights, obligations or sureties that he assigns to his professional activity on a descriptive statement filed with the register where the declaration provided for in Article L. 526-7 to be annexed thereto. In the absence of any property, right, obligation or security assigned pursuant to the second paragraph of…

Subsequent to the creation of the assigned assets, the entry or withdrawal in the accounts of an asset, right, obligation or security entails assignment to the professional activity or withdrawal from the assigned assets. Receivables and indemnities which replace assigned assets as well as assets acquired through the use or replacement of assigned assets are automatically assigned by the effect of real subrogation. Regularly kept accounts are evidence with regard…

The assignment of a property or part of a property is received by notarial deed and published in the mortgage office or, in the departments of Bas-Rhin, Haut-Rhin and Moselle, in the land register for the location of the property. A sole trader who assigns only part of one or more properties shall designate that part in a descriptive statement of division. The drawing up of the notarial deed and…

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…