The statutory auditor is an external auditor. Appointment is optional for EIRLs. Where necessary, he or she verifies the accuracy and compliance of financial information with applicable law. In this sense, he or she also exercises control over the decisions made by the EIRL's manager.
He performs statutory audits and certifies annual accounts for tax authorities.
More frequently, he intervenes at the time of the company's creation, to draw up the patrimony assigned to the EIRL.
The EIRL is unique in that it ensures strict separation between the entrepreneur's professional and personal assets. The entrepreneur's liability is limited to his or her capital contributions to the business.
In other words, his personal assets cannot be seized to repay a debt owed to the company, except in the case of a management error recognized by a court.
From a legal standpoint, the EIRL is ideal for entrepreneurs wishing to protect their personal assets in the event of bankruptcy, while benefiting from the same tax conditions as micro-entrepreneurs. The entrepreneur retains ownership of both assets, despite their separation.
The EIRL does, however, have an "affected patrimony". This is a legal status in its own right, giving the company its own patrimony. EIRLs are not required to draw up articles of association, which is why there is no difference between a legal entity and an individual.
It's possible to run a business as an EIRL, whether you're a sole trader, merchant, craftsman, farmer or self-employed professional.
The appointment of a statutory auditor is not mandatory for an EIRL. The auditor is mainly involved when the declaration of asset allocation is drawn up. It must include a description of the assets and rights assigned to the business activity, in terms of nature, quality, quantity and value.
A statutory auditor is required if the value of an asset exceeds €30,000 (excluding cash).
You can also seek the advice of a chartered accountant, a management and accountancy association, or a notary (for real estate only).
In an EIRL, the decision to appoint a statutory auditor rests solely with the manager.
First, you need to publish a legal notice in an approved newspaper. This must contain the following information
- The corporate name of your EIRL
- Head office address
- Its identification number, followed by the word RCS and the name of the town in which it is registered.
- The identity of the statutory auditor
- Effective date of appointment
- The Clerk's Office of the Commercial Court with jurisdiction over the address of the registered office
Once the ad has been published, you must submit a complete file to the relevant Centre de Formalités des Entreprises (CFE). This must contain :
- The right CERFA form for your EIRL
- A letter of acceptance from the statutory auditor and his appointment
- Proof that your auditor is on the official list
- Proof of publication of your legal notice
- Payment of fees to the commercial court clerk's office
The appointment of a statutory auditor follows a standardized administrative procedure that must be scrupulously respected. To help them with this process, many EIRL managers use the services of domiciliation companies.
Thanks to SeDomicilier, you can obtain a certificate of domiciliation in less than 5 minutes, in a 100% online process.
All your services are then available in a personalized, secure virtual office.
You can also take advantage of dedicated administrative and legal assistance to help you with all the official formalities involved in appointing a statutory auditor for your EIRL.
Written by our expert Paul LASBARRERES-CANDAU
June 3, 2020
