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

This has been a new obligation for all companies since 2017: it's essential to declare all of your beneficial owners.

Property investment companies (SCI) are also affected. An ultimate beneficiary is any individual who has control over the company, either through owning shares or having decision-making power. Remember, the goal of a property investment company is to buy and manage a portfolio of properties with multiple people.

Let's explore together what you need to know about these and how to declare them to the authorities.

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

This measure was introduced to strengthen the fight against money laundering and terrorist financing.

This is a mandatory step that allows the authorities to more easily identify the people at the head of an SCI, in order to better monitor its activities and detect illegal or fraudulent operations.

Thus, each company has the obligation to declare at least one beneficial owner. If 4 partners each own 25% of the capital, it is mandatory to declare a beneficial owner despite everything.

This obligation applies equally to both civil and commercial companies. It's essential to fulfill it to get your company registered.

Who are the beneficial owners of a real estate company (SCI)?

An ultimate beneficial owner (UBO) refers to any individual who has control over the company through ownership of shares or decision-making powers.

The Monetary and Financial Code (article L.561-2-2) strictly governs the concept of beneficial owner. This may include:

• From an individual holding at least 25% of the shares or voting rights of the SCI, directly or indirectly
• From an individual exercising control over the governance or management of the SCI in any way, without necessarily holding shares
• From someone holding the position of manager or co-manager within the SCI

All these individuals are declared in the register of beneficial owners (RBE).

How to declare the beneficial owners of a SCI (Société Civile Immobilière)?

It's crucial to strictly adhere to the legal deadlines set by law. Since August 1st, 2017, every SCI has 15 days from receiving the receipt of filing the registration application.

If the identity of the beneficial owners changes during the life of the SCI, you have 30 days from the date of the event causing the change to declare it. Each change must be notified to the registry of the commercial court.

Each declaration must include the following elements:

• Regarding the reporting SCI: company name, legal form, SIREN number, registration registry.
• Regarding the natural person concerned: names, first names, date and place of birth, nationality, address, methods of control exercised over the company, date on which the person became the beneficial owner of the company.

If a SCI (property company) fails to meet its reporting obligations, it risks a criminal penalty of up to 6 months' imprisonment and a 7,500 euro fine. That's why it's essential to provide accurate documents to the authorities on time.

At SeDomicilier, the unmissable French leader in business domiciliation, we provide you with administrative and legal assistance to support you in all your SCI creation procedures.

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