How do you set up an SCI to buy property in France?

The substantive conditions: two partners, freely set capital, a civil purpose

A société civile immobilière (SCI) is formed by two or more persons who agree to contribute assets or services to a common venture with a view to sharing the profit or benefiting from the resulting savings (Article 1832 of the French Civil Code). At least two partners are therefore required: a single-member SCI does not exist, and if all the shares end up in one person's hands the situation must be regularized within one year, failing which dissolution may be sought (Article 1844-5).

The share capital is freely set, with no legal minimum, in cash or through the contribution of a building; in the latter case, a notarial deed and land registration are mandatory. The purpose must remain civil: acquiring, holding, managing and letting buildings unfurnished. Buying buildings in order to resell them on a habitual basis is, by contrast, a commercial activity (Article L. 110-1 of the French Commercial Code), incompatible with the civil form.

Articles of association and management: the legal framework

The articles of association must be drawn up in writing and set out, in addition to each partner's contributions, the company's form, purpose, name, registered office, capital, duration (99 years at most) and operating rules (Articles 1835 and 1838 of the French Civil Code).

The SCI is run by one or more managers, who may or may not be partners, appointed by the articles or by a decision of the partners (Article 1846). With regard to third parties, the manager binds the company through acts falling within the corporate purpose (Article 1849); decisions exceeding the manager's powers, such as selling the building if the articles do not so authorize, belong to the partners. One trade-off to understand before signing: the partners are liable for the company's debts without limit, in proportion to their share of the capital (Article 1857), after the company itself has first been pursued unsuccessfully (Article 1858).

Formalities and the cost of formation

Since 1 January 2023, all formalities go through the single business portal operated by the INPI. The company only acquires legal personality upon its registration with the Trade and Companies Register (Article 1842 of the French Civil Code), which comes with the declaration of beneficial owners (Article L. 561-46 of the French Monetary and Financial Code).

For a formation without the contribution of a building, with articles you draft yourself, the administrative cost remains modest: the notice of formation in a legal notices medium is billed at the flat rate set by ministerial order, namely 191 € excluding VAT in 2026 for a société civile immobilière in mainland France, to which are added the registry fees for registration and for the declaration of beneficial owners, for a total in the region of 300 €. Assistance from a notary or a lawyer, strongly advised whenever the SCI carries a family project, is the main additional expense.

Buying and borrowing through the SCI

Once registered, the SCI buys the building in its own name: it signs the preliminary contract and the deed of sale, and it takes out the loan. Banks analyze the file like a loan to private individuals, based on the partners' income and down payment, and almost always require their personal guarantee: the corporate veil does not remove the partners' commitment. The notary fees on the purchase are identical to those of a direct purchase.