The separation of personal and professional assets enters into force
Updated: May 14, 2022
Welcome to My Blog! here is another edition of my "business abroad" blog post.
As you may remember, in February this year, I told you about a legal reform that will create a new single status of Entreprise Individuelle and, in particular, allow all of the entrepreneur individuel's personal assets to be unseizable by professional creditors. If you didn't read my blog post on this subject, find it here. This applies of course to the Micro-entreprise, which is a simplified version of the Entreprise Individuelle.
ℹ️ Creditors are all those whom you owe money : your supplier, your subcontractor or your banker in case you took a loan.
The entry into force of the reform
Starting from May the 15th, personal and professional assets will be automatically separated (pursuant to décret nº 2022-725 du 28 avril 2022).
This way, if you are in debts to your suppliers or your subcontractors, they will only be able to seize your professional assets i.e. the goods that are useful for your professional activity (buildings, machinery, equipment, furniture, vehicles etc...). They won't be able to reach your personal assets (i.e. your home, your secondary residence or other tangible goods).
ℹ️ Tax and social debts are not concerned by this scheme : If you are late paying your tax (Impôts) or social contributions (URSSAF), they will be able to seize your personal assets.
indications that should appear in all of the commercial documents
To benefit from this measure, you must state the words "Entrepreneur Individuel" or the initials "EI" immediately after your name on your professional documentations and correspondence, that is :
sales contracts (CGU, CGI, contrats de prestations de services),
advertising materials (business cards, flyers, price lists, etc.),
all correspondence relating to your professional activity
Those indications must also appear in the title of your professional bank account (if you have one). Your bank should take care of it, but you should check that it has done so.
What penalties apply to those who omit to comply?
If you don't comply :
You may have to pay a fine up to 750 euros
Your creditors will be able to reach your personal assets as well as the money on your personal bank account.
If you have more questions about this reform, feel free to drop me an email at firstname.lastname@example.org
Hi I'm Mathilde, a lawyer passionate about entrepreneurship and expatriation. I support expatriates in setting up and managing their businesses in France. Do you have any questions or concerns regarding your business? I'm here to guide you!