Creating an SCI Online
This article will guide you on how to create an SCI online and explore the benefits of choosing an SCI for property management.
Creating a Société Civile Immobilière (SCI) used to be a complex and costly process. However, since January 1, 2023, all business procedures have been digitized and can be completed through the INPI's unified portal.
This not only simplifies the process but also significantly reduces costs.
This article will guide you on how to create an SCI online and explore the benefits of choosing an SCI for property management.
Before diving into these details, if you want to create your own SCI company, Micco can provide you all the services. Micco stands as an all-in-one financial platform tailored for business creators, facilitating a comprehensive array of services. These include streamlined procedures for company registration, professional bank account establishment, capital deposit management, and more.
Micco's commitment to empowering business creators extends to:
- Effortless company registration processes
- Seamless professional bank account setup
- Convenient capital deposit management solutions
- A suite of additional financial tools and resources catered to entrepreneurs
With Micco, business creators can access a one-stop solution designed to streamline their financial operations and support their growth endeavors effectively.
Table of Contents
- Benefits of Creating an SCI
- 1.1 Flexibility in Collective Decision-Making
- 1.2 Optimizing Tax for Property Transfer
- 1.3 Protecting Partners or PACS Partners
- 1.4 Choosing the Best Taxation Mode
- Why Create an SCI Online?
- Steps to Create an SCI Online
- 3.1 Contributing to Capital
- 3.2 Drafting the Articles of Association
- 3.3 Publishing a Notice
- 3.4 Submitting the Registration Application
- Costs of Creating an SCI Online
- Frequently Asked Questions
- 5.1 How to Create a Family SCI?
- 5.2 How to Create an SCI Alone?
- 5.3 What Are the Main Benefits of Creating an SCI?
1. Benefits of Creating an SCI
Creating an SCI is an effective way to optimize property management and inheritance. Here are some specific benefits:
1.1 Flexibility in Collective Decision-Making
Creating an SCI allows partners to avoid the rules of joint ownership, which might not suit their situation. In joint ownership, if one owner wants to leave, all co-owners must sell the property. However, in an SCI, if a partner wants to leave, they can simply transfer their shares, which simplifies estate management.
1.2 Optimizing Tax for Property Transfer
Parents who wish to gift a property to their children must pay transfer taxes proportional to the property's value, but they can benefit from a €100,000 tax exemption every 15 years. In an SCI, parents can gradually transfer their shares to their children without exceeding the €100,000 threshold, thus avoiding high gift taxes. Additionally, share splitting allows parents to retain use of the property or remain the SCI manager during the transfer.
1.3 Protecting Partners or PACS Partners
For unmarried or PACS partners who jointly own a property, there is no legal protection if one partner dies. Holding the primary residence through an SCI ensures security for the surviving partner via cross-segmentation. Each partner holds 50% of the bare ownership and 50% of the usufruct. Upon the death of one partner, the survivor receives the usufruct, allowing them to continue using the property, while bare ownership is passed to the heirs.
1.4 Choosing the Best Taxation Mode
Due to its civil nature, an SCI is by default subject to personal income tax (IR). Annual taxable profits are distributed among partners based on their shareholding and included in their personal tax returns. However, partners can choose corporate tax (IS) at a fixed rate of 25%, which might be more advantageous. If conditions are met, profits under €42,500 can enjoy a 15% lower tax rate.
2. Why Create an SCI Online?
Since January 1, 2023, all company creation procedures are done through the INPI's unified portal. The government has abolished the previous 6 CFE networks and fully digitized business procedures. Creating an SCI online not only standardizes the process but also saves time and costs. Using Micco online services ensures all procedures are properly completed, guaranteeing smooth company operations.
3. Steps to Create an SCI Online
Creating an SCI involves several steps, which can be done on an online legal platform:
3.1 Contributing to Capital
Partners must decide on the capital contribution to the SCI, with each partner receiving shares proportionally. There is no minimum amount required, and it can be as low as €1. Contributions can be in cash or kind, with the latter needing valuation to be included in the SCI's capital. Even small cash contributions must be deposited into the SCI's bank account, and a deposit certificate must be obtained.
3.2 Drafting the Articles of Association
The articles of association are crucial for SCI's operation. An online platform will draft them according to partners' needs, usually requiring an online form to be filled out. The articles typically include:
- Company name
- Purpose of the SCI
- Registered address
- Capital amount
- Share value
- Partner identities and shareholding
- Company duration (not exceeding 99 years)
- Share transfer conditions
- Manager identity and change conditions
3.3 Publishing a Notice
Within one month of signing the articles, a notice of company creation must be published in a legal announcement medium. The notice should include the company name, legal form, purpose, registered address, capital amount, signing date, registration location, registration number, and manager's identity. After publication, a publication certificate is received and must be submitted to the INPI.
3.4 Submitting the Registration Application
Within one month of signing the articles, the registration application must be submitted to the INPI, providing the following documents:
- SCI's registered address proof (e.g., lease contract, recent utility bill)
- Manager's non-conviction declaration and family tree
- Authorization, allowing the platform to handle necessary procedures
The online platform typically handles all related procedures, including declaring the SCI's beneficial owners (those holding over 25% of shares or voting rights).
Once all documents are complete, the platform can register the SCI, usually receiving the Kbis extract, SIREN, and SIRET numbers within a reasonable time.
4. Costs of Creating an SCI Online
Creating an SCI online involves certain costs, including platform service fees and fees for each procedure. While costs vary by platform, online creation is generally cheaper than using traditional lawyer services.
Common costs include:
- Platform service fee: From €149
- Notice publication fee: €185 in mainland France, €217 in Réunion and Mayotte
- Registration fee: About €75
- Beneficial owner declaration fee: €21.41
Additional costs may arise depending on the company's situation, such as registered address fees and partners' travel expenses. If a chartered accountant is needed to evaluate capital contributions in kind, their fees typically range from €100 to €1,000.
Overall, online procedures cost around €500, whereas self-managed procedures can cost up to €1,300.
5. Frequently Asked Questions
5.1 How to Create a Family SCI?
Creating a family SCI involves the same steps as a regular SCI: contributing to capital, drafting articles, publishing a notice, and submitting the registration application.
5.2 How to Create an SCI Alone?
Generally, you cannot create an SCI alone because the law requires at least two partners. However, if during the company's life all shares end up with one person, the company is usually allowed to continue despite technically needing dissolution.
5.3 What Are the Main Benefits of Creating an SCI?
The main benefit of an SCI is optimizing property management and inheritance, reducing personal or company taxes, and providing partners with flexible decision-making mechanisms and legal protection.
This article provides a detailed guide on creating an SCI online and highlights the various benefits it offers for property management. We hope this helps you better manage and transfer your property.
As a financial services company, Micco provides comparable services and solutions tailored to the needs of modern businesses. With a user-friendly platform, competitive pricing, and a commitment to customer satisfaction, Micco is a viable option worth exploring.
Whether you're a freelancer, startup, or established enterprise, Micco offers the tools and support needed to streamline financial operations and drive business growth. Check out Micco today to discover how it can complement your business banking needs.
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