Montant De La Reserve Legale

When allocating the profit of a commercial company of the SARL type or a joint-stock company (in particular SAS and SA), the partners are required to allocate part of the profit to the legal reserve, up to 5% of the profit made and within the limit of 10% of the share capital. From the moment the company makes a profit, shareholders are required to allocate at least 5% of their amount to a legal reserve account until it reaches 10% of the share capital. As soon as this threshold is reached, this assignment obligation expires. If the company©makes a profit©©, members©must allocate at least 5% of this amount to the reserve account©©. However, these payments are made©each year of the year©©©, but© up to a certain threshold. Indeed, the reserve©is limited to©10% of the©company`s share capital. As soon as this threshold is reached, the allocation obligation ends. ©Therefore, in the year© in which this ceiling is reached, the equality reserve is allocated© up to the maximum threshold, even if it represents© less than 5% of profits©©©©. The two legal ceilings (allocation of 5% and threshold of 10% of the share capital) are minimum amounts, the articles of association may provide for an allocation obligation of more than 5% and a foundation threshold of more than 10%.

If the company does not make a profit, no amount will be allocated to this account. The losses are simply put back into a deferral account to reduce distributable earnings in subsequent years. At the General Meeting, you and your shareholders decide to allocate an amount (at least 5% of profits) to the statutory reserve. What changes concretely is an entry at the level of your balance sheet for this year. At the top of the balance sheet at the level of equity: You have a line with the inscription: “Reserves” Read also: What is the mandatory reserve for an LLC? The accounting officer of the SAS must then transfer the corresponding amount from the “Profits (12000)” account to the “Legal reserve (106100)” account. Hello, The obligation to pay a legal reserve into an SAS only applies up to 5% of the amount of profits made on a statutory reserve account until this reserve reaches 10% of the share capital. Once this threshold is exceeded, the obligation expires, but the articles of association may continue to provide for an allocation of more than 5% and a threshold higher than 10% of the share capital. Hoping that our answer was useful to you, the LegalPlace team.

We propose an article on the amount of the legal reserve required for the LLC. Shareholders may decide to reserve an amount higher than the legal 10%. The articles of association of the company may provide for the creation of an additional reserve. Example of allocation of the reserve in the life of a company: After determining the distributable profit, shareholders must allocate at least 5% of this amount to the legal reserve, up to 10% of the capital. Once this threshold is reached, this obligation ceases to apply more or less quickly, depending on the size of SAS`s share capital. A company makes a profit of €10,000 on a capital of €1,000. This is its first fiscal year and it decides not to pay a dividend. The entry is as follows: Note: If you increase the share capital of your company, the minimum amount of the legal reserve also increases. Further information on the capital increase can be found in the article on the share premium and the capital increase. Hello, no, this is simply an accounting order. It is a bit like social capital, its amount is not put in a specific account, but in the current account of the company, and it can be consumed.

The money deposited in the legal reserve account cannot be paid into a specific bank account, it is a pure accounting operation consisting in transferring part of the amount appearing on the account “Profit (account 120000 in accounting)” to the account “Legal reserve (account 106100 in accounting). The legal reserve is the amount of profits transferred to the company within the limit of the minimum capital required by law for LLCs and other forms of companies. At the annual general meeting, the shareholders decide on the distribution of the previous year`s profit and the distribution of profits between transfers, reserves and statutory reserves. As soon as the threshold of 10 % and thus the level of the minimum reserve is reached, the allocation to the legal reserve can be stopped. It must be taken over in the event of a capital increase. The amounts placed in the legal reserve cannot be distributed to the partners, unlike the amounts of the other reserves. On the other hand, the legal reserve may be included in the share capital. ©©The reserve shall be allocated each year when the profit for the financial year©©is allocated© if it is positive. The money deposited in the bank`s account is not paid into a distributed account, but leads to an accounting operation©©©, which consists in transferring© part of the amount from the “necessity” account to the “equality©© ©© only” account©.

©©.

About the author

Newslinkin staff