EIRL
Law 19,857, published in the Official Gazette on February 11, 2003, to authorize the establishment of individual limited liability companies (EIRL).
This legislation is a real novelty, as even before this law did not exist in our legal system a mechanism to separate the individual entrepreneur who goes to business assets, those assets owned and intended for other purposes.
The objectives of this Act, basically, is to encourage the development of new business initiatives in addition to small entrepreneurs formalization or legitimate business activities of people who have not done so because they act under the protection of company or companies actually simulated. FORMALITIES
CONSTITUTION OF
EIRL certainly is appropriate that this legal regime has a formal constitution, consisting of the provision of a public deed and the registration and publication of an extract of it in the Trade Register in the Official Gazette, respectively. The demand for these formalities leads both in defense of the person who creates the EIRL as the protection of third parties that contract with it.
Content of Law:
a) is authorized natural persons to provide individual companies with limited liability.
b) These companies should be formed by public deed, which extract is part of the commercial register and published in the Official Journal (formally identical to the law provides for limited liability companies and corporations);
c) The articles of incorporation must identify its owner and indicate the name of the company, its initial capital, economic activity or money, home and duration may be indefinite.
d) the formalities of incorporation, created the legal and commercial life, a new legal person, provided commercial the object can contemplate civil or commercial activities of any kind, except those reserved exclusively to corporations;
e) The individual business owner responds with its heritage, only contributions made to the company. The company, meanwhile, is responsible for the obligations entailed in the exercise of its business, with all its assets.
f) The name of the company must bear the name of its owner or a fancy name, a reference to the object or money but the abbreviation "EIRL"
g) formality and publicity should be given special contracts entered into by the company individual owner, when acting in their personal wealth.
h) The management of the enterprise is the owner, but this may give general or special powers to do so, a manager or agent.
i) profits withdrawn by the employer, belong to it and not the assets of the company.
j) establishing the grounds for termination of the company, among which the will of the employer, the arrival of the period or the owner's death.
k) In turn, establishes the mechanisms for that, if the holder dies, his heirs can continue with the company;
l) provides for the possibility that an individual firm becomes society or a society can transformed into individual companies when their capital meets in the hands of one person.
m) All the legal regime applicable to the company, including tax and cleaning up the void for defects that may have incurred in their constitution or reform the legal status of limited liability companies.
