An SCI (Société Civile Immobilière) is a legal form that allows several people to join together to manage one or more properties. It offers a number of advantages, including simplifying the transfer of property assets and avoiding joint ownership. But what exactly is an SCI? What are its advantages? This article explains everything!
An SCI (Société Civile Immobilière) is a legal structure that enables two or more people (individuals or legal entities) to form a partnership and jointly manage a property portfolio.
There are several types of SCI:
An SCI is the ideal way for several people to manage a property, whether they are family, friends or partners. Unlike joint ownership, where every decision requires the unanimous agreement of all the owners, an SCI operates under pre-defined articles of association that allow one or more managers to be appointed. This makes it easier to take decisions and avoids blockages, particularly in the event of disagreement.
The SCI is also the ideal legal status for preparing a succession. It allows you to pass on a property gradually, by selling shares rather than the property itself. This method is more flexible and can offer tax advantages, while allowing the donor to retain control of the management, even after he or she has begun to pass on the estate.
By pooling resources, SCI partners can invest in higher-value or better-located properties than they could afford on their own. The legal structure also reassures banks, making it easier to access property loans, for example.
Finally, the SCI is a legal entity separate from the partners. This means that the property assets of the SCI are separate from the personal assets of each partner. In the event of difficulties, the debts of the non-trading property company are divided between the partners in proportion to their share in the share capital, thereby limiting the financial risks.
First of all, it should be emphasised that the accounting of an SCI depends on its tax regime:
Whichever system you choose, we advise you to keep strict accounts from the moment you set up your SCI, even if this is not strictly required by law. This will make it easier to manage your business.
We also recommend that you centralise your financial transactions in a bank account dedicated to the SCI. If you mix up your personal and business finances, you run the risk of getting lost and complicating any tax audits.
To save time and minimise errors, you can use accounting software such as Indy that is tailored to SCIs, or you can call on the services of a chartered accountant. A chartered accountant can give you valuable advice, but there is a cost involved. A cheaper alternative is to use accounting software that automates most of your tasks and lets you manage your SCI completely independently.
Finally, remember to keep clear, accessible documentation: minutes of general meetings, rental agreements, bank statements, etc. This will help you to manage your SCI effectively over the long term, maintain good relations between the partners and anticipate the transfer of your property assets under the best possible conditions.
To sum up, the SCI is a legal status that allows several people to invest in property together. It offers a number of advantages, not least facilitating the transfer process. Good management of the business depends above all on good bookkeeping, which is why we advise you to opt for online accounting software such as Indy.
