Real Estate Credit: Why Not Borrow Via A SCI?

The creation of a Civil Real Estate Company (SCI) is a great way to manage your wealth – whether from a tax or estate perspective. Created to acquire and own real estate as part of a common project , and not for commercial purposes, it is aimed at both professionals and individuals. But what conditions must be created to create it and what are the legal obligations of this assembly?

How to create an SCI?

Created for a maximum of 99 years , the SCI – by its “civil” character – brings together at least 2 partners : it can be legal or physical persons, without limitation of number, without nationality restriction and without minimum capital imposed by the law. Concretely, SCI can bring together friends, a family, a couple or any other set of individuals.

The drafting of the statutes of an SCI is framed by article 1835 of the Civil Code, imposing certain mentions: “besides the contributions of each partner, the form, the object, the name, the registered office, the social capital, the duration of the company and the modalities of its operation. ”

Note that the appointment of the manager is made in general meeting, as that of the co-manager, to ensure the succession, if any. For the appellation chosen , reflection of the image of the future SCI, it is sufficient to consult the websites Infogreffe and INPI to check its availability.

Crucial for the tax aspect, the share capital is constituted by the sum of the contributions made by the various partners, whether in cash (money) or in kind (securities, building materials, securities …). In exchange for these contributions, each partner receives shares, issued proportionately.

Beyond the drafting of the statutes, by notarial deed or by private deed, the constitution of the SCI requires a registration in the trade and companies register, as well as a legal announcement in an authorized newspaper .

What are the associated legal obligations?

What are the associated legal obligations?

Within an SCI, each decision must be validated at a general meeting – be it for the completion of major works, the purchase of a new property or the appointment of a new manager.

Each year, the manager must approve the accounts with all the partners and draw up a report. These documents are essential in determining the fees payable at the time of succession.

The choice of registered office

The choice of registered office

registered at the time of the drafting of the statutes, determines the competent court for the creation of SCI, the management of its “life” (capital increase, transfer of headquarters …) and litigation. This domiciliation also indicates the nationality of the company and therefore the tax rules associated with the host country. Note that it is possible to choose the domicile of the manager, one of the partners or a business center: it is sufficient to provide a proof of less than three months, required when registering with the RCS.

If the constitution of an SCI is simple, it is better to be accompanied to avoid disappointment. At RR Credit, our credit experts can assist you in its contractualization , to launch this new company on good legal and tax bases. Do not hesitate to ask them !


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