How to Create an SCI

How to Create an SCI: Complete and Updated Guide 2026 by a Chartered Accountant Paris 8#

The creation of an SCI (Société Civile Immobilière) is a structure to hold, manage and pass on real estate assets. This guide sets out the steps of creating an SCI, the administrative formalities and the tax choices to make.

A SCI is a civil company dedicated to the ownership and management of real estate, without commercial activity. Unlike an SARL or SAS, it is fiscally transparent by default, which means that the partners are taxed directly on the results in proportion to their shares.

The Key Advantages of an SCI#

• Organised management: several partners decide according to the voting rules set by the articles (unanimity or majority).
• Optimized asset transfer: Ideal for families, it allows the transfer of shares rather than the entire property, reducing costs and conflicts.
• Tax flexibility: Choice between income tax (IR) and corporate tax (IS) to adapt to your situation.
• Partners' liability: SCI partners are liable without limit for the company's debts, in proportion to their share of the capital (article 1857 of the Civil Code), once the company itself has been pursued without success.

An SCI under IR is often chosen to offset property deficits, while IS allows buildings to be depreciated.

SCI vs Other Structures: A Clear Comparison#

An SCI avoids the rules of joint ownership (indivision) and opens a choice between two tax regimes.

Here are the steps to create an SCI.

Step 1: Define the Project and Associates#

• Identify the partners (minimum 2 natural or legal persons).
• Determine the object: acquisition, bare rental, management of family property.
• Set the capital: €1 at least.

Expert advice: Draw up an associates' pact to anticipate outings or donations.

Step 2: Write the SCI Statutes#

The statuses are the heart of your SCI. They must include:

• Company name (e.g.: SCI Hayot Immobilier).
• Head office (your address or domicile).
• Precise corporate purpose: "acquisition, management and rental of real estate".
• Contributions: cash, nature (real estate) or industry.
• Shares: distribution, approval for transfer.
• Operating rules: management, meetings, annual accounts.

Typical model: have the articles adapted to your project by a notary, a lawyer or a chartered accountant.

Practical tip: Integrate clauses to optimize transmission (progressive donation of shares).

Step 3: Make the Contributions and Open a Bank Account#

• Cash contribution: deposit the funds in an account opened in the name of the company being formed.
• Contribution in kind (building): it is recorded in a notarial deed.
• Open a bank account in the name of the SCI.

Step 4: Publish a Legal Announcement#

Mandatory for all creation.

• Content: form (SCI), name, capital, headquarters, purpose, management.

Step 5: Submit the File to the Registry of the Commercial Court#

Via the one-stop shop for business formalities (INPI):

• Signed articles of association.
• Proof of registered office, manager's ID, certificate of deposit of funds.
• Sworn statement of no criminal conviction from the manager.

The Kbis extract is issued once registration is complete.

Step 6: Post-Creation Formalities#

• Insure the properties held.
• Organise bookkeeping and the partners' annual approval of the accounts.
• If the SCI chooses corporate tax, notify the election to the business tax office before the end of the third month of the financial year.

Set-up costs: they depend on how the articles are drafted, the legal notice, registry fees and the support chosen; they are quoted on request.

SCI taxation depends on the regime chosen. By default IR; an election for IS is possible and can be withdrawn until the fifth financial year following the election (it then becomes irrevocable).

IR regime: Transparency and Land Deficits#

• Profits imposed on partners (progressive scale and 17.2% social levies on property income).
• Deductible expenses: works and expenses (excluding loan interest) can create a property deficit deductible from overall income up to €10,700 a year; the part due to interest is carried forward against property income of the following ten years.
• Capital gains: Progressive reductions (up to 100% IR after 22 years, PS after 30 years).

Example: SCI with rent €20,000, works €25,000 → Deficit €5,000 reduces your personal taxes.

IS regime#

• Rate: 15% up to €42,500 of profit subject to conditions (turnover below €10 million, capital fully paid up and at least 75% held by individuals), 25% beyond.
• Building depreciation: Spread over 20-40 years, reduces taxable profit without cash outflow.
• Dividends: 31.4% flat tax, or the progressive scale on election.
• Disadvantage: Professional capital gains without long-term reduction.

Transmission#

• Donation shares: Reduced rights (deduction €100,000/child every 15 years).
• Succession: heirs receive shares, which avoids joint ownership of the building itself.

• Returns: form 2072 for an SCI under income tax; corporate tax returns if the SCI has elected for IS.
• Assemblies: Annual for approval of accounts.
• Management: Associate or third party, paid or not.
• Dissolution: Voluntary or judicial, sharing of lots after liquidation bonus.

Errors to Avoid:

• Regular furnished letting: above 10% of commercial revenue, the SCI becomes liable to corporate tax.
• Poor distribution of shares (donation reclassification risk).

Case 1: Family SCI for Transmission#

Parents and two children, contribution of an apartment: shares are given progressively, within the gift-tax allowances.

Case 2: SCI to IS for Rental Investment#

Purchase of a rental building: depreciation reduces the taxable profit under IS; the gain on sale will be computed on the net book value.

Case 3: SCI for Married Couples#

The split of shares is organised according to the matrimonial regime and each spouse's contributions.

• Bookkeeping, annual meeting and tax returns: their cost depends on the number of properties and the tax regime, and is quoted on request.