Do you want to manage your property or assets in the best possible way? Setting up a non-trading company is an interesting solution, but should you opt for a société civile patrimoniale (SCP) or a société civile immobilière (SCI)? At AND Capitalan accounting firm specializing in business start-up and tax optimization in AndorraWe'll help you make the right choice.
What is a société civile patrimoniale?
Visit société civile patrimoniale allows managing a diversified portfoliobeyond real estate. You can include securities, shares or any other type of asset. The corporate purpose of an SCP is therefore to broader than that of an SCIlimited to property management.
Managing and passing on a varied estate
By creating an SCP, you benefit fromgreat flexibility in management and transmission of your assets, while avoiding the constraints of joint ownership. It's also an effective tool for optimize transmission through donations of shares.
No minimum capital requirement
Another advantage of the SCP : no minimum amount is required to constitute share capital. So you can set up your company even with low initial capital outlay. Be careful, however, if real estate is included, as a notary's involvement will be required.
Specific features of a non-trading property company
Unlike the SCP, the société civile immobilière is a real estate non-trading company whose sole purpose is to manage real estate assets.. Governed by Articles 1832 et seq. of the French Civil Code, it can be profit-making (rental, property development, etc.) or non-profit-making (simple ownership of assets).
Attractive tax benefits
If your company only owns real estate, the SCI is a wise choice. You will be able to benefit from tax advantages such as the capital gains tax on real estate or certain tax exemption schemes.
Disadvantages of SCI and SCP
SCI and SCP nevertheless have a number of weaknesses. The corporate purpose must remain civil, excluding commercial activities. In addition, income tax is payable by defaultEach partner is taxed on his or her share. In some cases, it may be preferable to switch to corporate income tax.
Choosing between SCP and SCI
To make your choice, look at the composition of your assets. Real estate only? Opt for the SCI. Diversified assets? The SCP is more suitable. In both cases, tailor-made articles of association enable you to adapt the operation to your needs.
Let the experts guide you
At AND CapitalWe can advise you on the most appropriate structure for your asset situation. Our experts in setting up an investment company in Andorra then support you through all the legal, tax and administrative formalities.
Benefit from an advantageous tax framework by creating your SCP or SCI in Andorra. We're here to help you manage your assets with peace of mind.
- The AND Capital team
Don't hesitate to Contact us for a personalized, no-obligation initial consultation. Give your assets a new dimension with AND Capital!
