Beneficial owners in SCI: why and how to declare them?

This is a new obligation incumbent on all companies since 2017: it is imperative to declare all of its beneficial owners.

SCIs are also concerned. A beneficial owner is any natural person with power of control over the company, through the ownership of shares or decision-making prerogatives. It should be remembered that the purpose of an SCI is to purchase and manage a portfolio of real estate assets for several people.

Let's find out everything you need to know about them, and how to declare them to the authorities.

Why is it important to declare the beneficial owners of an SCI?

This measure was introduced to reinforce the fight against money laundering and the financing of terrorism.

This is a compulsory step enabling the authorities toidentify more easily the persons at the head of an SCI, with the aim of better controlling its activities and detecting illegal or fraudulent operations.

Each company is therefore required to declare at least one beneficial owner. If 4 partners each own 25% of the capital, a beneficial owner must still be declared.

This obligation applies to both non-trading and trading companies. It must be completed in order for the company to be company registration.

Who are the beneficial owners of an SCI?

A beneficial owner is any individual who has a controlling interest in a company through shareholding or decision-making powers.

The French Monetary and Financial Code (article L.561-2-2) strictly defines the notion of beneficial owner. It may include :

• An individual holding at least 25% of the shares or voting rights in the SCI, either directly or indirectly.
• A natural person exercising control over the governance or management of the SCI in any way whatsoever, without necessarily holding shares in the company
• A person occupying the position of manager or co-manager within the SCI

All these individuals are subject to a declaration in the register of beneficial owners (RBE).

How to declare the beneficial owners of an SCI?

It is imperative to scrupulously respect the legal deadlines imposed by law. Since August^1, 2017, all SCIs have a 15-day deadline following receipt of the receipt for filing the application for registration.

If the identity of the beneficial owners changes during the life of the SCI, you have 30 days from the date of the deed making the change. Each change must be notified to the Clerk of the Commercial Court.

Each declaration must include the following information:

• Concerning the declaring SCI: company name, legal form, SIREN number, registration office
• Concerning the natural person concerned: full name, date and place of birth, nationality, address, type of control exercised over the company, date on which the person became the company's beneficial owner.

If you fail to meet your tax declaration obligations, you could face up to 6 months' imprisonment and a 7,500 euro fine. That's why it's so important to provide your tax authorities with accurate and timely documentation.

At SeDomicilier, France's leading provider of business domiciliation services, we offer administrative and legal assistance to help you set up an SCI.

With SeDomicilier, receive your certificate of domiciliation in less than 5 minutes, and free up your valuable time for what really matters: the success of your SCI's projects!