LMP Status: Mandatory Registration with the French Trade and Companies Register Held Unconstitutional

Written by, Séphora Amsellem on February 8, 2019

Selected French Leaseback Cases

The French Constitutional Court ruled that the requirement for a Loueur en Meublé Professionnel (LMP) to be registered with the French Trade and Companies Register was unconstitutional. The Court held that the letting of furnished accommodation does not constitute a commercial activity within the meaning of Article L.110-1 of the French Commercial Code. As a result, registration with the Trade and Companies Register is no longer required in order to qualify as an LMP.

(Constitutional Court, 8 February 2019, n° 2017-689)