EI: mandatory mention for sole traders in 2022

All sole proprietorships must now include a new mention on their business documents: EI or “Entrepreneur Individuel” (Sole Trader). This requirement took effect on May 15, 2022. Here are the details of this new law and how to comply so you don’t end up at fault.

Which businesses are affected?

All sole proprietorships are now affected by the addition of the EI mention (or “Entrepreneur Individuel” written in full), which must be placed right before or after your name.

This applies to all EIRLs (Limited Liability Sole Proprietorships) and micro-enterprises, which have been grouped under the single sole proprietorship status, as well as sole traders/micro-entrepreneurs, who are also considered sole proprietorships.

If you fail to comply with this requirement, you are liable to a fine of €750.

What is the purpose of this new mandatory mention?

The purpose of this new mandatory mention is to inform the various parties you deal with of the separation between your personal assets and your business assets. Until now, they were linked, which allowed creditors to seize your personal assets — except for your primary residence — if you failed to settle your debts. Creditors include suppliers, subcontractors, your banker, the tax authorities, or even a dissatisfied customer claiming damages.

To protect your assets before this decree, you had to set up an EIRL (Limited Liability Sole Proprietorship) and file a declaration of allocation listing the assets assigned to the business.

Now, your personal assets are protected from seizure, except by the tax authorities, since the State retains full rights. If you fail to pay your social security contributions, CFE (business property tax), or taxes, they can seize your personal assets and value them as they see fit to recover what is owed.

Documents covered by the decree

The EI mention must be added to all documents relating to the business:

• quotes;
• purchase orders;
• invoices;
• delivery notes;
• various contracts: terms of use, terms of sale, service agreements, etc.;
• advertising materials (brochures, flyers, etc.);
• legal notices;
• income ledger;
• purchase register;
• flyers;
• marketing brochures;
• stamps;
• letterhead;
• business bank account;
• checks;
• bank statements;
• bank details (RIB).

For now, the documents below are still exempt from the EI mention requirement:

• business cards;
• email address;
• social media;
• logo;
• website domain name.

Printed documents

This obligation is not retroactive, which means documents printed before May 15, 2022 are not affected. Keep your invoice for flyers and other printed materials to prove you are not at fault.

Checks are unlikely to happen right away. However, if you had large quantities printed to get a competitive price, your stock could last several years. In case of an audit, you’ll need to be able to prove your good faith by presenting the invoice. You can also add the mention by hand as you distribute your documents.

For now, this mention does not need to be added to business cards. However, if you have new cards printed, you can add it in case the law changes.

For digital documents (invoices, quotes, etc.), you must add the mention on any new document you issue.

The bank account

Every sole proprietorship must have a bank account dedicated to its business once its revenue exceeds €10,000 over two consecutive years.

If you have a business bank account, simply ask your banker to add the mention to your account name and your bank details (RIB) — they won’t object.

However, for a sole trader/micro-entrepreneur in particular, having a business account is not mandatory. It can be a personal account, but one dedicated to your business. Your banker may then be reluctant to add a mention indicating that the account is, in effect, used for business purposes. Explain that the law requires it, without requiring you to hold a business account. They should be accommodating.

The new decree and your accounting software

To keep your accounting documents up to date, you need to add the mention in your accounting software. You can place it before or after your name. That way, any new document will be compliant.

For more details, see decree no. 2022-725 of April 28, 2022 on the definition of the professional assets of a sole trader and the mentions required on business documents and correspondence by following this link.