individual entrepreneur | Pepfrance Creation

  • Principle: Responsibility is limited to goods that are “useful for the business”

The new status of sole proprietorship Comes into force May 15, 2022.

For companies created on or after this date, the property “useful for professional activity” will be automatically separated from other property of the entrepreneur. The individual entrepreneur benefits from separating assets without declaring a waiver or descriptive statement.

Goods “useful for activity” In particular, they include:

  • Goodwill, Artisan Fund, Agricultural Fund, and all tangible or intangible assets of which it is made up, and the rights thereto, and the right to offer clients of liberal professionals;
  • Movable property such as goods, equipment, tools and agricultural equipment, as well as means of transportation for mobile activities such as sales and household services, and transportation or delivery activities;
  • real estate used for the activity, including part of the main place of residence of the individual entrepreneur used for professional use; When such premises are owned by a company in which the individual entrepreneur is a shareholder or partner and whose main activity is to make them available to the individual entrepreneur, the shares or units of this company;
  • intangible assets such as customer data, patents, licenses, trademarks, designs and models, and generally intellectual property rights, trade name and trade name;
  • Cash money, i.e. cash kept at the place of professional activity, amounts credited to bank accounts designated for this activity, as well as sums intended to cover current expenses related to this activity itself.

When the individual entrepreneur is bound by legal or regulatory accounting obligations, his professional assets are presumed to include at least all the items recorded in the accounting documents, provided that they are regular, truthful and give a faithful picture of the assets, financial position and results of the company.

Only the professional assets of the individual entrepreneur constitute the general mortgage of the creditors whose rights will be generated in the course of his professional exercise.

Les nouvelles dispositions s'appliquent également à tous les entrepreneurs individuels en exercice, mais uniquement pour les créances qui seront nées à compter du 15 mai 2022. Pour les créances nées antérieurement, les créanciers conservent un gage sur l'ensemble du patrimoine (professionnel et personnel) de l'entrepreneur. 

An individual entrepreneur may waive the restriction of the undertaking of professional creditors, upon the written request of one of them, in return for a specified obligation. The creditor must take back the term and amount which must be specified or specified.

Thus, the individual entrepreneur will be able to mortgage an element of his personal assets (except for his main place of residence, etc.) as security for professional debts.

The waiver must respect, under pain of nullity, the forms to be determined by decree.

The right to pledge the Tax and Social Security Administration may relate to the entire professional and personal assets of the entrepreneur in the following cases:

  • in the event of fraudulent maneuvers or serious and repeated non-compliance with his tax obligations in connection with his business or on a personal basis or serious and repeated non-compliance in the collection of contributions and social security contributions in connection with his business, the fact of these acts no longer need to be noted in advance by the judge;
  • for the collection of income tax and social security contributions (unless the entrepreneur chooses corporate tax), as well as for the collection of property tax on property useful to professional activity, including the individual entrepreneur or his tax house;
  • For the social security institutions to collect the income tax due from the owners of small projects (at once) or social security contributions.

The conditions for applying these provisions for the benefit of the tax authority and social organizations are determined by a decree.

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