Registrar of the Commercial Court of Paris - Register of Commerce and Companies

Economic interest group is a grouping of pre-existing firms which goal is to “facilitate or develop the economic activity of its members and to improve or increase the results of this activity. The aim is not to make profits for the grouping”. (art. L 251-1 (2) of the Commercial Code) The economic interest group could thus be termed an intermediary between company and association. Registration at the register of commerce and companies (“RCS”) shall grant the legal personality to the economic interest group.

Purpose : The grouping may have a non-trading or a commercial purpose. The non-trading or commercial nature of the grouping’s main activities shall be declared at the register of commerce and companies (“RCS”) .

Members : The economic interest group shall be formed of at leastTwo members. There is no maximum prescribed by law. Members may be natural persons or legal entities. They may be French or foreign citizens. They are not deemed to be traders.

The members of the economic interest group are indefinitely and jointly liable for the debts of the group (i.e. every member is liable in respect of his own personal assets for all the grouping’s debts, whether caused by him or not). However, a new member may, if the grouping contract allows this, be exonerated from the debts arising prior to their entry into the grouping.
A non-trading company may be a member of an economic interest group. In the same way, an emancipated minor may also be a member.
All members shall be declared at the register of commerce and companies (“RCS”). A member that is a legal entity must declare its permanent representative only if the permanent representative also is a director. It is as a director that the person must be declared, not as a permanent representative.

The group's capital : The economic interest group may be formed without any capital. If the grouping contract prescribes a specific capital for its formation, no minimum is required. Economic interest group may not ask for public offering. However, the variability of capital is possible.

Contributions : No contribution is required.
If the members decide to make contributions, those contributions may be made in the form of cash, kind or services. In case of contributions in kind, members are not required to appoint an auditor of the contribution proceedings to evaluate these contributions.

Durée de la personne morale : un G.I.E. doit être constitué pour une période déterminée, nécessaire à l’accomplissement de ses objectifs.

Annual accounts : An economic interest group must be formed for a specific term, necessary for the fulfillment of its goals.

Administrateur : One or more directors may be appointed either in the formation agreement, or by the general meeting of the members. They may be natural persons or legal entities. When a legal entity is appointed as a director, it must be represented by a permanent representative who must be declared at the register of commerce and companies (“RCS”).
A director may or may not be a member.
In dealings with third parties, the director shall bind the grouping. He is the group’s legal representative.

Compulsory supervision of the accounts and the management : the appointment of an account supervisor and a management supervisor shall be stipulated in the formation agreement.
The account supervision shall be carried out by one or more auditors when the economic interest group :

For economic interest groups that do not meet those conditions, the appointment of an auditor is optional.

The management supervision :

Decision-making process : The members’ decisions shall be taken in a general meeting. Written consultation or consultation by exchange of letters are not fixed in the legislation and thus, must be mentioned in the formation agreement.