Are SCIs required to have their own French bank account?

Reader Question: If we buy a French property via an SCI, does the SCI need its own bank account?

We did not identify a law obliging SCIs (société civile immobilière, which can be used to manage properties in France) to have a dedicated bank account in its name.

This was confirmed by bilingual tax lawyer Laurent Gravelle, from Sophia-Antipolis, Alpes-Maritimes, who said notaires generally accept funds from an SCI’s shareholders’ own accounts, paid pro rata according to each person’s shareholding.

Even so, experts advise having a dedicated account for the SCI from set-up to avoid complications later.

This will be a compte pro as a personal account cannot be in a company name.

Mr Gravelle said: “For your accountant, it makes things clearer and simpler, as they will be looking at the company’s account only and will not need to consider other accounts owned by shareholders. Plus, if there is a tax office investigation, this should not address the shareholders’ personal affairs.”

Also, for expenses (eg. improvements) to be taken into account - which could reduce capital gains tax liability on a future sale, you need bank statements showing from where the payment originated, and it is clearer if this was from the SCI’s account, even if it is possible to use a shareholder’s personal account.

Mr Gravelle added that some SCIs hold part of their capital in an ‘unliberated’ form (eg. pledged by a shareholder) and when this is paid, it should be into an account for the company.

Dedicated accounts are required when selling property

“Most importantly, a dedicated account can be really beneficial when you come to sell,” he said. “Some people open an account for the company initially, then close it [seeking to avoid professional account bank fees] but this is a mistake because when you come to sell, the notaire will look to pay to an account in the SCI’s name.”

At this late stage of the process many banks can be reluctant to open such accounts.

Many banks offer accounts tailored for SCIs, and it is worth negotiating over fees – for example, it may be beneficial to leave a minimum sum in the account.

Check the terms, some online banks have low monthly charges but a high charge per transfer above a set minimum.

It may also be difficult to contact the customer service teams of some account providers.

Documents needed to open a bank account can include a copy of the ID of the shareholder designated as the SCI’s gérant (manager), an extrait KBIS (see more about this here), the statuts (articles of association), and a copy of the Journal Officiel notice that confirmed the SCI’s registration.

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