What are the accounting requirements for SCIs?

An SCI facilitates the management of real estate assets, with a view to generating and passing on income. It's an asset management tool favored by many French people, especially within a family circle.

In effect, they enable the pooling of one or more real estate assets in order to share the profits or take advantage of any savings that may result. It is therefore a civil partnership with a real legal personality.

It is managed and represented by a manager, appointed by a vote of the partners. The operation of the SCI is set out in its articles of association. Its accounting obligations are focused on cash management, if it qualifies for the simplified regime.

For those who need to keep double-entry accounts, there are several essential principles to follow.

Let's take a look at all the accounting requirements for an SCI.

Why keep SCI accounts?

Double-entry bookkeeping is not always compulsory for SCIs. However, it can be of real benefit to your partners.

In the case of current accounts, keeping accounts means that these accounts can be used as evidence against the tax authorities and other associates.

This is particularly useful in the event of a subsequent transfer of shares.

If a capital transaction occurs, the SCI's capital can be paid up on a deferred basis, and the accounting system will make it easier to track the transaction for all partners.

Last but not least, certain tax arrangements will be clearer and more secure, as it enables you to prove the real existence of the SCI. Last but not least, you'll keep better control of all your incoming and outgoing income flows, so you canoptimize the management of your company.

For all these reasons, and despite the fact that accounting obligations can sometimes put off some associates, it is a useful short- and medium-term management tool.

What are the SCI's accounting obligations?

Not all SCIs are subject to the same accounting obligations. This depends on their tax regime, the provisions included in their articles of association, their activity and the number of partners. Some benefit from simplified formalities, while others are obliged to adopt double-entry bookkeeping.

Firstly, the simplified model is limited to cash accounting

In practical terms, this means keeping a notebook recording all receipts and expenses. The balance obtained at the end of the financial year must correspond to that shown on your bank statement.

Only non-trading property companies (SCI) that are subject to income tax in the property income category, and whose partners are natural persons, can benefit from this advantage.

For other SCIs, double-entry bookkeeping is used .

They must then apply the same provisions as traditional companies, and follow the rules prescribed by the general chart of accounts.

It is then necessary to keep accounting journals (a journal book, a general ledger, an inventory book and appendices) to which can be added a journal of purchases, sales, VAT, etc.

The number of accounting entries is much greater, requiring a solid knowledge of accounting and management.

The SCI must therefore draw up its annual financial statements

These obligations apply to SCIs subject tocorporate income tax(impôt sur les sociétés- IS), where a partner is subject to corporate income tax (impôt sur les sociétés - IS), or when they are of "significant size".

To qualify for this last criterion, the company must meet at least two of the following three conditions: its balance sheet total must exceed 1.55 million euros, its sales must exceed 3.1 million euros, and it must have more than 50 employees.

SCIs engaged in specific activities are also required to adopt double-entry bookkeeping (e.g. construction and sales SCIs).

Is a statutory auditor mandatory?

Calling in a chartered accountant is not mandatory for SCIs, but is strongly recommended! The company can choose to keep its own accounts, or delegate them to a professional.

If you choose the first option, make sure you have all the necessary skills and the appropriate computer software.

The chartered accountant performs a contractual mission for the SCI, recorded in an engagement letter and subject to payment of a fee.

For the SCI manager, using a chartered accountant reduces the probability of errors, is more reassuring, more credible, and above all limits the possibility of suffering a tax adjustment in the event of an error.

Numerous online and physical accountants now offer their services to all entrepreneurs.

SCI managers often turn to domiciliation companies to set up their head office. This efficient, low-cost solution enables them to protect their privacy, while benefiting from a host of additional services designed to lighten their daily routine.