Beneficial both socially and financially, One Person Limited Liability Company is admired by many entrepreneurs. And for good reason, an EURL is similar to an LLC, with one difference: There is only one partner. So if you have decided to start your activity through this legal form, you must first complete the formalities of setting up the business. Of which, EURL capital deposits. How to do ? We uncover everything for you.
EURL Capital Deposit: What Does the Law Say?
Reminder on the share capital of the EURL
Contributed by the company’s founder, the share capital of the EURL corresponds to its initial assets. This can be in cash (a sum of money), in kind (eg company premises) or in industry (labor and knowledge). However, contributions to industry are rarely used within the framework of the EURL.
In this article, the EURL capital deposit deals with cash contributions only. As such, the law sets a minimum share capital of €1. However, you should know that this amount is public. That is, it must be visible on the business documents of the company. So the sole shareholder is fully interested in adapting this amount to his activity, as it reflects his financial capabilities. Providing adequate social capital can reassure customers, banks or suppliers.
In general, it is advisable to bring in more than the minimum when creating the EURL. This then makes it possible to finance the expenses associated with the creation of the company (publishing legal notices in newspapers, registration, etc.).
EURL. depositing share capital in
The deposit of share capital takes place before the signing of the EURL law. When making a deposit, funds are deposited into a blocked account and cannot be released until the EURL is registered.
The entrepreneur has the potential to stagger his deposit of share capital. Indeed, the law stipulates that he can accumulate 20% of the capital during the creation of the EURL. Then, the entire capital has to be deposited within 5 years from the registration of the company.
In the absence of registration after 6 months of depositing the share capital, the entrepreneur is entitled to claim a refund of the funds.
Where to deposit the share capital of EURL?
The sole shareholder shall deposit the capital of his SASU in a blocked account specially dedicated for this purpose. Funds can be sent to 3 actors for this:
The choice of custodian is done at the discretion of the person paying the money. In most of the cases, this happens near a banking establishment. This is the fastest and cheapest option.
However, if your SASU is formed with a notary, it is logically up to him that the capital will be credited.
By choosing an actor like Qonto, you can deposit share capital online and receive your certificate in an average of 72 hours!
What does it mean to deposit EURL capital?
The money should be paid by the depositor within 8 days from the date of receipt of:
- in cash ;
- by cashier’s check issued by an establishment in France;
- telegraphic transfer.
It should be noted that CDC only accepts cashier’s checks issued by a French establishment that contain proof of origin of the funds.
Once you have your deposit, the custodian gives you a certificate of capital deposit. The latter mentions:
- the name of the eurl;
- Registered office address;
- the amount paid;
- Identity of the depositor.
What are the documents required for capital deposit of an EURL?
To deposit the share capital of an EURL, you will need to provide several supporting documents:
- deposit request;
- identity document of the applicant;
- eurl address;
- proof of payment of funds;
- proof of their origin;
- Legal statutes of the EURL.
After depositing the funds, the bank issues you a certificate of deposit. This will then allow you to proceed with the formalities for the registration of the EURL.
Once the construction formalities are complete, you will receive a Kbis quote which you need to submit to the bank, notary or CDC, so that your capital will be returned to you. This operation can take time, count on average 15 days.
After unblocking, you can deposit the amount into the final account. If you haven’t chosen your bank yet, don’t hesitate to read our dedicated article.
Deposits in a professional account will allow you to start your activity by making the first investment on behalf of your company.
case of liability to restructure capital
This process occurs when the shareholders’ equity of the EURL is less than 50% of the share capital. This equity is made up of all the capital that is added over the life of the company, such as share capital, reserves, annual results, etc.
If the company experiences financial difficulties, this equity could be significantly reduced, to the point of representing less than half of the share capital.
In this situation, EURL must restructure shareholders’ equity, through an increase or decrease in share capital, or a revaluation of the balance sheet. If the EURL does not manage to regularize the position at the end of the second financial year, the EURL will have to be dissolved.
Who can deposit the share capital of EURL?
Any person acting on behalf of the EURL can deposit the share capital. Most often, this is the only partner.
What is the minimum deposit amount for the share capital of EURL?
The law sets the minimum EURL share capital deposit amount at €1.