Why set up a family SCI?

Family SCI: definition

The familySCI (société civile immobilière) is a legal status that enables members of the same family to manage one or more properties together. The company's partners can make contributions in kind or in cash. You can contribute the share of a property you own, and receive shares in return. The real estate non-trading company must not engage in commercial activities such as buying and reselling.

It may, however, rent unfurnished accommodation for a period of three years. You can ignore this condition if you opt for an additional partner with whom you are not closely related. You can also set up a family SCI to invest in real estate. In this case, the company will own the property contributed by the partners. However, the non-trading company obliges all parties to share in any losses.

The main difference between an SCI and a family SCI is that, in the latter case, the partners are related. If you're wondering how to register an SCI, just call SeDomicilier. We'll help you set up and register your SCI.

The advantages of a family SCI

There are many advantages to setting up a family non-trading property company . We can help you identify the advantages of this type of company from an economic and tax point of view.

Economic benefits

A family SCI gives you the opportunity toorganize a stable joint ownership of your real estate between the heirs, and to reduce inheritance tax. This legal structure facilitates the transfer and inheritance of real estate. In accordance with the articles of association, the company's partners can transfer shares to heirs.

Managing a property portfolio for several people is a challenge that requires everyone's agreement and a great deal of negotiation. Setting up a family SCI saves time and money. It allows you to involve your children in your project, and to ensure a tax-free inheritance.

Tax benefits

The legal status of a non-trading property company (SCI) enables you to benefit from major tax breaks, such as the elimination of transfer duty costs when passing on assets to your children. You also have the option of transferring assets while retaining a degree of control. You can choose to pass on the power to manage the assets to your children after your death, and opt for a manager from outside the company. What's more, you can opt for property dismemberment to divide the rights to the property between usufructuaries and bare owners.

With the income tax regime to which the société civile immobilière is subject by default, associates can finally reduce the amount of their personal taxes. In this case, the company has no profits to declare or taxes to pay. If you can't set up the company in your own home, you can choose to domicile the SCI. The advantages of domiciling a family SCI include its accessibility, and its ability to adapt to individual budgets and needs.

The procedure for creating a family SCI

A family non-trading property company (société civile immobilière familiale ) follows the same steps as a conventional SCI. For example, you need to :

• drafting the articles of association,
• deposit of share capital,
• publication of a company formation notice,
• preparing and filing the registration file.

The articles of association of a family SCI are drawn up by the partners. The purpose of the Articles of Association is to lay down the company's operating rules, and they must include mandatory details such as the corporate purpose and legal form. They must also include the contributions of each partner, the company name, the amount of share capital, the address of the registered office and the duration of the company's existence.

The share capital of a family SCI must be deposited in a dedicated bank account. The share capital can be variable or fixed, but you should choose the first option if you want to add family members to the company. Legislation imposes no minimum amount, and capital can be as low as one symbolic euro. Income from other activities, money obtained through a loan, a donation or the rental of real estate can all serve as contributions.

The company's notice of incorporation is published in the legal gazette (JAL) responsible for its registered office. At the end of this stage, a certificate of publication is issued to the company's manager. Finally, the SCI familiale registration application must be filed with the formalities center or the commercial court clerk's office. This consists of several documents, depending on the choice made by the manager. In general, the cost of setting up a SCI familiale includes the filing fee, the cost of legal announcements and the cost of professional assistance.

The responsibilities of the SCI family manager

Article 1846 of the French Civil Code requires the appointment of a manager for a family real estate partnership. The manager is appointed by the partners of the company, and may be a partner in his or her own right. The manager may be one or more individuals or legal entities. The role of the manager of a family SCI is primarily to act in the interests of the company.

He or she intervenes in relations between partners and carries out all acts of management of the company. Since he is accountable to the partners and to the family SCI, the manager may be held civilly liable if he fails to fulfill his duties. As he is liable under both civil and criminal law, he may also be prosecuted for failure to comply with the company's articles of association, fraud or misconduct.