The sole owner of a Single member limited liability company (EURL) can make various contributions, including monetary contributions. Here is a guide on this type of donation which is integrated into the capital of the EURL.
Advantages of providing cash contribution to an EURL
The cash contributions constitute monetary amounts provided by theEURL to its sole shareholder. These funds will be integrated into the share capital of the company.
In return for this contribution, the sole shareholder will hold shares in the EURL. The quantity and value of these shares are determined by the EURL statutes.
Freedom of silver investments in EURL
The silver investments in EURL do not have to be fully released. In any event, they must be paid up to at least 20% when the company is created.
The rest (up to 80%) must be released in one or more instalments by decision of the manager within five years from the registration of the company in the Trade and Companies Register (RCS).
Be careful however, when the EURL is subject to corporation tax, failure to pay the capital at the end of the financial year may have the effect of excluding the company from the reduced rate of corporation tax ( IS) of 15%. In addition, the interest paid on the sums made available by the single partner to the EURL (investment in current account) is not deductible either.
Consignment of cash payments for the creation of an EURL
Within 8 days of their receipt, and before the signature of the statutes, the funds must be placed on behalf of the company in formation:
- either in a bank ;
- either at the Fund deposits and Consignment ;
- either at a notary.
La placement reference funds must be included in the articles of association.
Recovery of capital invested in cash
The capital is unavailable until the EURL is registered in the trade and companies register. They are then accessible on presentation by the manager of the K-bis extract.
If the EURL is not created within a period of 6 months from the deposit of the capital, the single contributor may bring a lawsuit to request authorization to recover the amount of his contributions or choose an agent who will request directly to the custodian the withdrawal of funds.
Tax benefits for cash contributions in EURL
Under certain conditions, a single contributor of EURL who makes contributions in cash can benefit from two non-cumulative tax reductions (one relating to income tax – IR, the other to solidarity tax on wealth – ISF).
For more information on this device: tax advantages for the subscription to the capital of SMEs.
