How to create a family SCI?

Article created by legal experts. The editors did not participate in its production.

SCI family: definition

SCI (Société Civile Immobilière) finds a privileged place in the world of collective investment in real estate. What distinguishes a family SCI is its composition, essentially made up of members of the same family.

Unlike the SARL family, the SCI family is characterized by flexibility in the selection of its members. In practice, the criteria for admitting family members to the company are defined by the articles of association and the partners themselves.

A family SCI allows a family to own and manage one or more properties together, with or without different interests, on a non-commercial basis. It offers an alternative to freehold co-ownership and presents tax advantages for the transfer of property to future generations.

What are the benefits of creating a family SCI?

Deciding to form a real estate corporation (SCI) offers advantages that should not be overlooked.

SCI guarantees the continuity of family property for generations. Its legal personality distinct from the members ensures the sustainability of the company, thereby avoiding forced sales associated with the termination of joint ownership.

The ability of the SCI family to optimize PUSH inheritance transfer represents another great advantage. The transfer of shares benefits from favorable tax relief, an alternative that is often preferable to the direct transfer of property and its higher tax implications.

Finally, family SCI offers a safe solution for cohabiting partners in the event of death. Implementing cross-shareholding ensures that the survivor retains ownership and usufructuary rights to the shares, thereby avoiding high inheritance taxes.

What are the steps to follow to create a family SCI?

Step 1: Write the SCI Articles of Incorporation

To establish an SCI, you must first draw up its articles of association. These documents define the rules governing the functioning of the company. It is through this text that you can, for example, describe in detail how to appoint a family ZO manager and define the responsibilities entrusted to him.

We remind you that the articles of association of a civil society such as SCI must contain the following information:

  • Legal form: SCI,
  • Company name,
  • social object,
  • address of the company headquarters,
  • Each partner’s contributions to the share capital,
  • amount of share capital,
  • Lifetime of the company.

Step 2: Open a bank account and deposit the share capital of SCI:

You will then need to open a bank account in order to deposit the share capital of your SCI family. This capital can be created in two ways:

  • Contributions in numerical : sums of money paid in cash, check or bank transfer.
  • Contributions in Nature : movable or immovable property.

Please note: there is no mandatory minimum amount defined for the share capital required to create a family SCI.

Another important thing to know about real estate company share capital is that it can be fixed or variable. The share capital represents the amount of money that the partners put into the start-up of the business and thus forms its financial basis.

  • Main solid means that the initial amount remains constant unless the SCI partners decide to formally adjust it.
  • And vice versa, social capital variable means that the amount may fluctuate over time depending on the inputs and outputs of the partners or fluctuations in the value of assets added to the capital. For example, the arrival of new family members with real estate or the departure of some partners from SCI can lead to an increase or decrease in capital.

Publish a legal notice of the creation of an SCI in a legal notice newspaper

The establishment of a family SCI involves the third step of informing third parties of the establishment of the company by publishing a notice in the legal gazette. The choice of newspaper depends on the future location of SCI headquarters. You have the option to choose from the media authorized to broadcast legal notices, whether they are newspapers available on newsstands or online.

In both cases, you will be issued with a digital certificate of publication, which is necessary to register the company with the one-stop shop for business formalities.

In 2023, publication costs will range between 181 and 217 euros, depending on the location of the SCI.

The required information for writing your legal notice with a registration request is as follows:

  • legal form: SCI,
  • nature of the document: authentic document or private document (ASSP),
  • date of signature of the articles of association,
  • Company name,
  • Registered address,
  • amount of share capital,
  • social object,
  • life of the company,
  • the identity of the manager(s),
  • terms of transfer of shares

For example, the text of your notification of the creation of an SCI could be as follows:

According to ASSP on 1/12/2023 SCI called:

COMPANY NAME

Registered office: 15 avenue du Général 75001 Paris Capital: EUR 5,000 Purpose of the company: Acquisition and management of real estate Administration: M NAME First name registered at 15 avenue du Général 75001 Paris Transfer of shares: Shares are freely transferable to a partner. Any transfer to a third party of the Company is subject to the prior approval of the general meeting of shareholders. Duration: 99 years from registration with RCS in Paris.

Submit the SCI registration file to the website of the single point of contact:

Registration at the SCI single point of contact represents the final stage of the process of its creation, whereby the company acquires an officially recognized legal identity. From January 1, 2023, the registration application is registered on the single point of contact platform managed by INPI.

Once the file is complete, this online counter will take care of forwarding the documents to the relevant administrative and legal authorities to approve the registration process of your family SCI. In other words, this single point of contact facilitates the connection between the company and the official bodies responsible for the legal registration of the company.

IMPORTANT: from January 1, 2023, the CERFA M0 form is no longer used for the creation of EVVO. Indeed, entering information into the single point of contact creates an equivalent in the databases provided by INPI: the National Commercial Register (RNE), the Commercial and Commercial Register (RCS).

In this file you will need:

  • Submit the original articles of association, duly dated and signed by all SCI shareholders.
  • Submit a statement of the beneficial owners, also dated and signed by the legal representative.
  • Submit an affidavit that you have not been convicted and a certificate of origin from the manager, dated and signed in original.
  • Submit proof of use of premises used as SCI headquarters.
  • Submit proof of manager credentials.
  • If this designation is not specified in the articles of association, attach a copy of the act on the appointment of the executive.
  • Attach a confirmation of the publication of the notice of statutory registration in the authorized newspaper of the department where the SCI has its registered office.
  • Provide confirmation of deposit of funds.

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