What is an Economic Interest Grouping (EIG)?

Established by the ordinance of September 23, 1967, the Groupement d'Interet Economique is an original structure that acts as an intermediary between the company and the association. For best accountancy training Best school of accountancy In Lahore. With a legal personality, the main objective of the EIG is to allow members to pool their activities to develop them .

The characteristics of the EIG

Composed of a minimum of two members who may be natural or legal persons, the Grouping of Economic Interest differs from  fondations and GIP by many peculiarities of its own:

• It may be constituted with or without capital. In the second case, the rights of each member must be clearly defined in the statutes of the EIG
• The activity of the EIG must necessarily be linked to that of its members and its object can be both civil and commercial
• The GIE can rely on a total freedom of statutory organization since the members of a GIE can define the statutes of their structure as they wish
• Generally, a GIE does not give rise to profits. If this is the case, the members decide together how to distribute them
• In the case of liability, all the members of the same GIE are jointly and indefinitely liable for the debts of the structure
• From a tax point of view, the Economic Interest Grouping is subject to income tax