A real estate civil partnership is a partnership agreement by which several partners decide to pool one or more real estate assets in order to share the profits or benefit from the economy that could result from them, while committing themselves to contribute to the losses.
In terms of civil partnership, the partners remain indefinitely liable for the company’s liabilities, which is why we offer you a tailor-made solution in terms of accounting, taxation and legal matters to assist you in the administrative management of your property.
The management of your real estate assets through a SCI is supervised by the legislator and gives you some obligations:
The Civil Code requires the manager of an SCI to report annually on management matters to his partners, as well as to these same partners to distribute the accounting result at a general meeting. As a result, these legal obligations create the need to keep accounts for all real estate partnerships.
The keeping of accounts also makes it possible to fulfil the tax obligation of all real estate partnerships, i.e. the preparation and transmission by electronic means of a real estate income tax return (return n°2072, n°2031 or n°2065 depending on the tax system).
In any case, the accounting of a SCI makes it possible to avoid any problems in terms of tax audit, transfer of shares, monitoring of partners’ current accounts, etc. For these reasons, it is frequently imposed by the company’s articles of association.
In addition to the legal formalities for the creation of a SCI, the shareholders are required to meet annually at an ordinary general meeting to approve the annual accounts and distribute the company’s accounting result. At this general meeting, the manager will have to report on his management to all the partners through a dedicated report.
In the case of a SCI subject to corporate income tax, the shareholders may decide to distribute dividends. This transaction is subject to the legal obligation to hold a general meeting and to make the related tax returns.
Finally, any legal changes made to the company’s personality must be the subject of an extraordinary general meeting. This is the case for decisions such as a transfer of the registered office, a reduction or increase in the registered capital, a change in the composition of the registered capital….