An economic interest grouping is designed to improve the economic activity and results of its members, without generating profits for itself. If you're thinking of transforming your association to better achieve common economic objectives, the specific features of an EIG could be the ideal solution.
Understand how this flexible structure can strengthen your collaboration and optimize your resources for greater economic impact.
Objectives, operation and characteristics of the GIE
The Economic Interest Group is distinguished by its main objective: to optimize and increase the economic activity of its members. As a collaborative economic structure, the GIE enables you to pool resources to support each other's activity, without aiming for profit. It is a tool at the service of its members.
Its activities must remain secondary to those of the constituent companies, such as the joint marketing of products. Thanks to the absence of strict regulatory constraints, an EIG offers you great flexibility, comparable to that of an unregulated association.
Take advantage of this structure to strengthen your business collaborations and maximize your results.
Advantages and risks of GIE
The main advantage of an economic interest group is that profits can be shared between members and, in the event of dissolution, a share of the remaining assets can be allocated.
However, it's important to note that an EIG also presents a significant risk: you will be jointly liable for debts out of your own assets, unless an agreement stipulates otherwise. This unlimited liability is similar to that found in a general partnership.
Make sure you assess these aspects carefully before setting up your MSE, to maximize its benefits while managing risks effectively.
Transforming an association into an economic interest group
Converting your association into an Economic Interest Grouping (EIG) is an option, provided your objectives are aligned with those of this collaborative economic structure. You may also opt to convert to a European Economic Interest Grouping (EEIG) if your members come from different European Union member states. To guarantee the security of this metamorphosis, it is recommended that the decision be approved unanimously, given the increased financial commitments involved.
Transferring your association to an EIG or EEIG requires neither dissolution nor the creation of a new legal entity, which makes the process much easier. On the other hand, changing from an EIG to an association requires the creation of a new legal entity and the dissolution of the previous one.
This flexibility enables you to adapt your structure to the economic needs of your members, while maintaining legal continuity.
Comparing fields of activity: GIE vs association
Although the business sectors of EIGs and associations may sometimes overlap, it's important to note a key distinction: associations focus on non-economic concerns, such as the defense of moral, religious or political interests. In contrast, an EIG focuses exclusively on the development of an economic activity.
If your main objective is to optimize and increase the economic results of your members, the creation of an EIG is the ideal structure for you.