If you run a business as an autoentrepreneur, as of the 15th May, you will need to include the new obligatory, legal, wording to all the documents relating to your micro-entreprise, including your quotes, invoices, flyers and contracts. This new wording is : “EI” ou “Entrepreneur individuel“.
This is following a new legal decree, the main aim of which will have an effect on entrepreneurs’ professional and private assets (décret n° 2022-725 du 28 avril 2022.)
So what does the “EI” wording mean for your micro entreprise?
This isn’t just about adding a few letters here or there. The purpose of this decree is in fact a very important one, as it has a direct effect on the personal and professional assets of micro-entrepreneurs by making them separate.
Professional and personal assets
Before the decree
Until now, the professional and personal assets of a micro-enterprise were combined as one. So if you had business debts, not only could your business assets be seized by creditors to whom you owe money, but so could your personal assets.
The only exception to this was that your main residence could not be seized. However everything else in your name (holiday home, rental properties, land, etc) could be seized.
What changes with this decree
From the 15th May 2022, personal and professional assets will be automatically separated according to Decree No. 2022-725 of 28 April 2022.
This now means that if you have business debts to your suppliers or subcontractors, they will only be able to seize your business assets. They will not be able to seize your personal property to repay the debt.
Please note that this does not include social and tax debts such as social security contributions (URSSAF), your CFE or your micro entreprise taxes. These can be taken from your personal assets.
How do I know if this applies to me?
Essentially, this new decree applies to all EI.
If your Micro-enterprise is already active, this protection will apply as soon as you indicate the above-mentioned mention and from 15th May 2022, and not before.
This means that if you have outstanding business loans, the bank will be able to seize your personal assets, as they were contracted BEFORE the posting of this mention and the application of this decree.
What happens if I don’t add this new wording?
If you don’t do add the necessary EI wording, you risk the following sanctions :
- a fine of up to €750,
- The risk that your creditors can seize your personal assets instead of being limited to just your professional assets.
How to apply the new “EI” wording
Now that we know why this change has been brought in, let’s look into the practical side of applying it.
Before we dig in, let’s go over some of the essentials of the Micro Entreprise.
What is a micro-entreprise?
The “micro-entreprise” is an individual business (“entreprise individuelle” or “EI“), which relies on the micro-entreprise tax system. It does not have a legal status as such, which is why officially its name will be the First name and Last name of the entrepreneur who set it up, not its commercial name.
You are considered an individual entrepreneur working within an micro entreprise.
This new decree concerns all the EI.
Dedicated Bank Account
When running a business in France, you are obliged to have a dedicated bank account for your business once you earn + de 10 000 € Annual Turnover (“Chiffre d’Affaires”), two years in a row.
If you have a professional bank account, this will automatically be considered as a dedicated business bank account.
If you currently have a personal bank account:
- It does not need to be dedicated to your business: if you earn less than 10 000 € annual turnover over two years.
- Needs to be dedicated to your business : if you earn more than 10 000€ annual turnover over two consecutive years.
This means that if you have set up your micro enterprise in 2021 or 2022, and you have a personal account, the above does not yet concern you (in terms of having to have a dedicated business bank account).
Your Business Name
The business name of your micro enterprise does not have any legal authority as such. This means that legally, the name of the micro enterprise is the Surname and Firstname of the entrepreneur.
So for example, if you have a business name, ie “Emerald & Jade Flowers”, you have to add the wording “EI” or “Entrepreneur individuel” before or after your Surname and Firstname, not your business name. It can be added either before or after :
- Fiona Lafon EI
- ou Fiona Lafon Entrepreneur individuel
Where to add the new wording?
This is the big question you have all been asking me, where does this new wording need to go?
Here is a non exhaustive list of where the new wording “EI” or “Entrepreneur individuel” will need to be added.
|Invoices||Quotes||Order Forms||Contracts for the Provision of Services|
|General Terms and Conditions of Use||General Terms and Conditions of Sale||Legal Mentions||Ledger|
|Purchase Register||Cheques||Promotional Documentation||Business Cards|
|Business stamps||Headed Paper||Correspondance concerning your microentreprise||Professional Bank Account + RIB|
|Dedicated Business Bank Account* + RIB|
*If your annual turnover is over 10 000 € for the past two consecutive years.
Where the wording doesn’t need to be added
Here is a non exhaustive list of where the new wording “EI” or “Entrepreneur individuel” does not need to be added :
|Your professional tax page (“Espace pro impôts”)||Your URSSAF account||Personal Bank Account*||Social Media accounts|
|Domain name||E-mail address||Logo|
*If your annual turnover is less than 10 000 € for the past two consecutive years.
The new decree becomes operational as of the 15th May 2022.
If you already have promotional stock such as flyers, brochures, etc, you may still use them but make sure that for your next order you add the necessary wording.
I hope this helps. This is brand new so we’re bound to find out more information as it is rolled out. If I have missed any information, or if you have heard anything I haven’t mentioned,do let me know.
I’d love to hear from you so do get in touch in the comments below!
This article was written on 12th May 2022, I will aim to update it as and when additional information is provided. Kindly note that this is written as advice only, and does not hold any legal value. If you have any specific questions relating to your business, do let me know in the comments below.