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Company Incorporation in France - Property companies - the "société civile immobilière"

How to start a French limited company. Incorporation or formation of a company in France.

 

 

Accounting for an SCI

If you chose to buy a property in France through a Société Civile Immobilière or SCI SCI is effectively as a society, you need to:

  • establish and register their SCI and
  • bring the annual accounts

Accounting System

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How to manage earnings received from a SCI

A French SCI is obliged to maintain accounts in France, based on the French Tax Code. This involves following the French accounting plan. Under these circumstances, it would be quite difficult to maintain the accounting records of English (or other) and would require some training to learn how to keep writing on the French base. Often more feasible to employ an accountant to work within the French system, the cost is probably justified.

The accounts of an SCI is not regulated and are not normally used for purposes comerciales. You obviously can control their own accounts, but this does not prevent the issuance of accounting.

Obligations for an SCI company

For an SCI exists as a real company must:

  • keep regular records
  • prepare annual accounts
  • develop an annual general meeting of members to approve the accounts
  • maintain legal records

If this is not carried out, according to the civil code, the company can be considered as non-existent with the tax consequences that this entails. It is important to note that if a SCI does not present the annual statements of income may be taxed at 3% above the market value of the property annually.

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