Le sole proprietor by EURL is authorized to perform three types ofinvestments in the capital of his company: the cash contributions, contributions in kind and labor input. Here is a description of the characteristics of each contribution to the capital of an EURL as well as the procedure to follow.
La cash contribution corresponds to a amount of money that the sole shareholder deposits in the bank account of his EURL.
These funds will help to constitute the company's capital and will give the right, in return, to an allocation of shares.
Cash contributions are regulated by law. The capital subscribed by the sole shareholder must be paid up to at least 20% during the incorporation of the company. THE 80% balances must be paid in one or more instalments within 5 years from the registration of the EURL in the trade and companies register.
The funds must be deposited within 8 days of their receipt in a special account opened in the name of the company being formed with a bank, with a notary or at the deposit and consignment fund. They can only be withdrawn upon presentation of the K-bis extract of the company, once registered.
For more details : cash contributions for an EURL.
Un contribution in kind is property other than a sum of money, such as equipment, a building, goodwill, etc., which is made available to theEURL and becomes his property. These contributions form the share capital of the company and give the right to shares.
The sole shareholder must to estimate the amount of each contribution in kind. This estimate will be verified by a commissioner of contributions unless :
If the sole shareholder does not call on a contribution auditor or if the contribution is overestimated, he will be liable for 5 years for the value attributed to third parties. Finally, contributions in kind must be paid in full when the business is created.
For more information, you can read our article on contributions in kind in EURL.
THEindustrial contribution is a non-material contribution which consists, for the sole shareholder, in making available to his EURL proven skills neighborhoods, are the know-how or a specific job.
Unlike the previous types of contribution, the industrial contribution does not contribute to the formation of social capital but nevertheless gives rise to the allocation of shares allowing to express a vote, to share profits and to contribute to the losses.
Un industrial contribution must also be estimated. Furthermore, the EURL statutes play an important role because they must specify the conditions under which shares are subscribed. They must also indicate:
The partner who makes an industrial contribution undertakes to carry out the planned activity within the time limits, not to carry out a competing activity and not to personally receive the profits resulting from the activity.
For more information : industrial contribution in EURL.
