Sole trader asset protection scheme

A BUSINESS status that protects the personal property of sole-traders is expected to come into force from 2011.

The entreprise individuelle à responsabilité limitée (EIRL) will allow business owners to make an official list separating personal and business property. Currently sole traders, including auto-entrepreneurs, risk losing property including their homes if they get into severe debt.

MPs have already passed the law which will be debated in the senate on April 6.

The exact details have yet to be finalised but business owners wanting to apply for the EIRL status will have to produce a list of their property and send it to their relevant chambre de commerce or chambre de métiers.

The option will be available for all types of business; artisans, commercial and professions libérales. Currently sole traders can only protect their possessions by drawing up a déclaration d'insaisissabilité with a notaire, a legal procedure costing several hundred euros that allows you to protect land and buildings not used for the business.