A société civile immobilière (non-trading property company) could be the key to opening the door to investment. SCI does not necessarily guarantee success, but it does offer real advantages for your real estate projects.
What are the good reasons for creating an SCI?
The main reason for setting up a non-trading property company (société civile immobilière) is often to avoid the inevitable conflicts associated with joint ownership following a death or separation. In the event of death, for example, the heirs will receive shares in the company corresponding to their rights in the estate. With an SCI, the property is "dematerialized" and transformed into company shares. Unlike the undivided ownership system, in which the heirs have to agree on all decisions, with this type of company, decisions are taken in accordance with the conditions set out in the articles of association.
The SCI also makes it easier for several people to buy and manage property together. For some people, the SCI represents the opportunity to buy a property together that they would never have been able to afford on their own. This could be the opportunity to buy a second home or an investment property as a group. The shares will then be distributed according to your contributions.
How do you go about setting it up?
Above all, you need to call on a legal professional to draw up the company's articles of association. Of course, you can take the risk of drafting them yourself, but we can only recommend that you call in a notary for tailor-made advice. In any case, if you bring a property into the SCI, you must visit your notary to ensure that it is registered with the land registry. The drafting of each clause is of the utmost importance, in particular those relating to the division of powers or approval clauses for an open or closed SCI.
Once signed by the partners, the articles of association must be registered with the Service des Impôts des Entreprises (SIE) and filed with the Clerk of the Commercial Court. They will also be advertised in a legal gazette. On the CFE (center de formalités des entreprises) website, you'll find a list of authorized newspapers in your département. The company must then be registered with the Registre du Commerce et des Sociétés (Trade and Companies Register), so that it has a legal existence. You will then receive a KBis, which is the SCI's birth certificate.
Online simplifications
The procedure for setting up a company is simpler than in the past, thanks in particular to the online services offered by the various organizations involved.
Can there be a minor child in a family SCI?
There are several types of SCI. The SCI familiale is ideal for managing a property as a family. However, the partners in a family SCI must belong to the same family (parents or relatives) up to the 4th degree. A minor child can therefore be a member of a non-trading property company. They do not need prior authorization from the guardianship judge to join the company. The simple agreement of his parents (legal representatives) will be sufficient if the contribution does not concern a building or a business. If this is the case, the authorization of the guardianship judge must be obtained beforehand. It should also be noted that the voting rights inherent in each associate will, in the case of a minor, be exercised by his or her legal representative. It should be noted that under no circumstances may a minor be a manager of an SCI.
Stéphanie Swiklinski