Why create a real estate company as an individual?

By fashionlifeshopping 13/12/2022 754 Views

In France, the creation of companies in the real estate sector increased by 6.8 % between 2019 and 2020.These INSEE figures show that many people continue to invest in real estate despite the current health and economic context.However, the creation of a real estate company is not reserved for professionals in this sector.In the case of individuals wishing to acquire and manage real estate, there is a legal status specifically created for them: the real estate company.

Real estate civil society: a company adapted to individuals' projects

Civil Real Estate Society (SCI) is a form of company, which allows individuals to organize the management of their real estate assets.We are talking about “civil society” because the SCI cannot have a commercial character.It simply makes it possible to facilitate the management and transmission of real estate assets and therefore does not suit for a buying activity resale of property.

Buying and resale real estate projects are considered to be purely commercial activities and assume the creation of commercial companies such as the simplified joint -stock company (SAS) or the limited liability company (SARL).

Pourquoi créer une société immobilière en tant que particulier ?

The SCI is not suitable for the construction-sale activity either, which consists in building a property in order to resell it by generating added value.There is a social form dedicated to this activity: Civil Society for Construction-Seat (SCCV).

SCI or Associates: Who is really the owner of the property?

When creating an SCI, it is the company that owns the property.The partners simply hold shares of SCI's share capital.These shares give them the right to participate in the management of the property through the company.

If you already have one or more real estate in your possession, you can bring it to the corporate capital of the company when it was created.It is also possible to acquire one or more goods directly by the company.In both cases, the company will be the sole owner of the goods.

Why create an SCI to manage your real estate heritage?

SCI has many advantages in the management of real estate, both practically and tax.

Indeed, on the practical level, it allows several people to associate themselves in the acquisition and management of real estate.This is an advantageous solution to increase its investment capacity while benefiting from a secure framework.

Furthermore, it is possible to sell your shares in the SCI without passing before the notary.The transmission is therefore simplified and inexpensive which makes it a significant asset to organize its succession by escaping the joint regime.It is also important to note that parents can organize their succession by transfers SCI shares free of charge.These donations allow children to benefit from tax abatements.

SCI has particularly attractive advantages for anyone constitutes a real estate heritage.Many assemblies are possible for the management of your wealth, it is therefore important to be accompanied in the creation of your SCI to ensure that your projects correspond to this social form.

(Image credit: istock)

Article written by

ExpertKézia VardeKézia Varde est diplômée d’un Master II de Droit des Affaires. Elle a rejoint Legalstart pour contribuer à renforcer l’accessibilité du droit et accompagner les entrepreneurs dans leurs projets....Voir ses contributionsCe texte est publié sous la responsabilité de son auteur. Son contenu n’engage en aucun cas la rédaction des Echos Solutions.

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