EURL creation: incorporation formalities

The number of businesses created rose by over 10% in 2016, thanks in part to entrepreneurs' attraction to thesingle-member limited liability company(EURL). Indeed, they represent 40% of the total volume of businesses created.

Although in slight decline, the number of EURL start-ups continues to grow, thanks to the many advantages offered by this status.

Here's an overview of all the formalities you need to know.

How do you set up your EURL?

Step #1: Determine what information is essential to your business

The first step is to choose :

• Your company's corporate name, or "raison sociale", is the name under which your company is registered with the Trade and Companies Register and under which it operates;
• Your company name: Make sure you don't choose a name that has been registered as a trademark, by contacting the Institut National de la Propriété Intellectuelle. In turn, you can protect your company name if you wish.
• Registered office address ;
• Share capital;

Step #2: Drafting and registering the articles of association with the CFE

The drafting of your company's articles of association requires particular attention, as this document is of paramount importance. It must meet a number of legal requirements.

The articles of association of an EURL are usually drafted in the form :

• a private deed ;
• a notarized deed, which is compulsory when a property is contributed.

They can be drawn up by the company's founder, a notary, a lawyer or a chartered accountant. In particular, they must specify the name of the company's director.

The clerk's office of the commercial court or the CFE usually provides a standard model statute setting out all the clauses required for proper drafting.

Step #3: Evaluate in-kind contributions to the EURL

All asset contributions must be reported and valued when the company is created. A contribution auditor must be appointed, unless the value of the assets contributed does not exceed €30,000 and the total amount of the assets does not exceed half the value of the share capital.

Step #4: Block the capital on an account in the name of the EURL at your bank

To set up your company, you need to go to your bank to block the amount of your future company's share capital. The money will be returned to the company's current account when registration is confirmed.

Step #5: Finalize, sign and register the articles of association

Once you've valued your contributions and locked in the capital, you can finalize the drafting of your articles of association, i.e. the clause mentioning contributions in cash and in kind. Your articles of association must be signed and registered with the Service des Impôts des Entreprises (SIE) within one month of signing.

Step #6: Place a notice in a legal gazette

Publication of a notice of incorporation of your EURL is compulsory, and must be carried out with an authorized legal gazette.

Step #7: Complete and file your EURL incorporation declaration

The M0 form (Cerfa n°11680*03) is used to declare your EURL. It must be signed by the manager, or by an authorized person with prior authorization. You will also be asked to attach a sworn statement that the manager has not been found guilty of any offence.

You will then be able to submit your file to the Registrar of the Commercial Court.

The creation file: documents to be provided

In order to be complete and accepted by the clerk's office, your file must include a number of documents. It must contain :

• M0 form, completed and signed in triplicate;
• A copy of the EURL's articles of association, dated and signed in the original;
• Proof of occupancy of the premises (contract of domiciliation, lease, title deed or EDF receipt, etc.);
• Proof of publication of the EURL incorporation notice in a legal gazette;
• A copy of the decision to appointment of the managerunless already designated in the articles of association;
• A copy of the manager's ID;
• A sworn statement of non-conviction and a certificate of parentage, unless already shown on a document already produced;
• Payment of registry fees for registration formalities.

Lighter formalities than a traditional company encourage the creation of a EURL

Assistance to which you are entitled when creating an EURL

EURL founders can benefit from a number of public aid schemes designed to help them with their project:

• The "Aide aux Créateurs et Repreneurs d'Entreprise" (ACRE) scheme provides several exemptions from social security contributions over a 12-month period;
• Unemployment benefits(ARE) can be maintained during the business start-up period;
• The ARCE lump-sum payment scheme applies, enabling entrepreneurs to receive part of their available unemployment benefit in the form of a lump sum.

It's important not to forget that specific assistance is available for young entrepreneurs.

Setting up an EURL is a solution that many entrepreneurs find appealing, thanks to the simplicity of the formalities to be completed and the support available for setting up this type of structure.

The simplicity of managing an EURL also makes this status even more attractive, even though the autoentrepreneur status is increasingly competing with it.