Why forming a Real Estate Company (SCI) in France?

17-11-2010

France has a particular entity called “Société Civile Immobiliere (SCI)” which purpose is to manage real estate asset. If at first constituent assembly to mount an SCI to transmit its heritage seems to be extremely interesting, increasingly, there are voices that is also stressed its binding.

 Indeed buy his own SCI primary or secondary residence, or to make an SCI residence which he already owns has many advantages.

 And heritage management of the individual can be made easier, mostly by avoiding applies the system of ownership, both after death, after a divorce or separation, but still allowing traders, industrialists, artisans, entrepreneurs and independent professionals to separate their personal assets from that business.

 Then the system can protect the SCI more a person than the system allows the devolution classic. This is the case when SCI is formed between two spouses. And a provision of the Articles of SCI may allow the continuation of the SCI with the only surviving spouse. This particular case of children of different marriages, this system prevents the heirs of the deceased partner can not ask the surviving partner to leave the property.

 Thus, an SCI can be more easily transmitted its heritage but also better distribute the shares of the shares being much easier than the division of property, that they are indivisible or totally scattered.

 Finally and most importantly, provide for a SCI transmit its capital is a real transaction tax optimization, for which the assistance of a lawyer is strongly advised.

Indeed the transfer of a property through an SCI allows the value of the shares passed to take into account the deduction of the liabilities of the company. And the added benefit of administrative practice that allows the value of shares transferred either carried a discount. This tolerance arises from the fact that these shares are not traded on a market and are not easy to sell to persons other than shareholders.

Nevertheless, it should qualify this statement. The choice of such an assembly should not be made lightly. Indeed, like any good system it has some drawbacks.

 On the one hand, a company being formed, a number of obligations related to this status must be respected, which entail costs. Thus, in addition to the formalities of incorporation, such as writing articles or advertising that may be made by counsel, the constitution of a society leads to management problems, such as bookkeeping, the meeting of General Meetings ...

 On the other hand, we should always remind those who would be interested in such an arrangement, the building belongs to the shareholders under any circumstances, but u made the formation of an SCI property to the latter. As a member of a SCI, it is possible to claim that ownership of shares.

Consequently, freedom of decision on the building, the power to dispose of it is smaller, because the partners must agree to take decisions.

It will therefore be careful that a difference of view can then block the functioning of society and not harm the interest’s original.

Finally, despite the aforementioned tax benefits, the transfer for value of a share of SCI is done since it is a taxable capital gain.

In any case, you will need the assistance of a global Law Firm in France and of French Real Estate Lawyers.

Picovschi Lawyers

Vous avez aimé cet article, partagez-le sur vos réseaux sociaux !