Sole Proprietorship (EI)

It is often chosen for its simplicity of creation and management, especially by independents, freelancers, and small activities.

Clarification

The Sole Proprietorship is a structure where the entrepreneur and the business are one legal entity.

The activity is carried out directly by the individual.

Number of entrepreneurs

• Single entrepreneur
• No partners allowed

Liability

Recent reforms allow separation between personal and professional assets.

Only assets linked to professional activity can be engaged in case of debts.

Share capital

• No minimum share capital required
• The entrepreneur funds the activity freely

Management and operations

The entrepreneur manages the activity alone:

• Decision making
• Administrative management
• Financial management
• No statutes to draft or complex rules

Tax regime

The Sole Proprietorship is subject to personal income tax.

Profits are directly included in the entrepreneur's personal income.

Social regime

The entrepreneur falls under the self-employed social regime and must pay social contributions.

Advantages

• Fast and simple creation
• Lower management costs
• Management freedom
• No minimum capital

Disadvantages

• Limited growth
• Less credibility with investors
• Tax burden directly tied to personal income

Who is the Sole Proprietorship for? It suits people who want to start an individual activity, test an idea or work as a freelancer without heavy administrative constraints.