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Is it necessary to maintain accounts in a Stock Clearing Corporation of India (SCI)?

Bookkeeping for many real estate civic groups is advised, though not mandatory, according to Marie-Laure Decobert, a property engineer at Swiss Life Private Bank.

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In essence, many real estate civic groups are not legally required to maintain records, though...
In essence, many real estate civic groups are not legally required to maintain records, though Marie-Laure Decobert, a Swiss Life Private Bank apatrimonial engineer, emphasizes that it's a significant recommendation.

Is it necessary to maintain accounts in a Stock Clearing Corporation of India (SCI)?

Rewriting SCI Accounting Obligations

Navigating Accounting Duties for Family-Owned SCI

Running a family-owned Société civile immobilière (SCI), what are my accounting obligations? Let's shed some light on the matter.

An SCI, in some cases, isn't legally bound to maintain elaborate accounts. This exemption usually applies when the SCI functions primarily as a real estate holding and doesn't engage in commercial activities. However, accounting is strongly advised even in such instances.

Why Bother with Accounting for SCI?

This proactive accounting approach allows the manager to fulfill annual reporting responsibilities. It aids in:

  • Monitoring the company's activities and cash flow
  • Filing declarations with tax authorities, satisfying their information requests
  • Informing associates about the financial health of the SCI
  • Evidencing the SCI's substance and authenticity, crucial during tax audits, asserting that the SCI carries out genuine business and wasn't created for fraudulent purposes
  • Tracking the loans given by associates to the SCI, ensuring their traceability

Can an SCI House One of Its Members for Free?

Although not compulsory for an SCI subject to income tax, careful accounting is highly recommended, settling for simplified accounting if necessary.

Accounting for Minors in an SCI

Marie-Laure Decobert, a patrimonial engineer at Swiss Life Private Bank, shares her insights on this topic:

  • Legal Representation: Minors cannot independently manage or represent the SCI. A legal representative (parent or guardian) acts on their behalf for all management or partnership-related actions.
  • Access to Accounting Information: The minor, via their legal representative, has the right to receive annual management reports and, if full accounts are prepared, copies of the accounts.
  • No Extra Requirements: The presence of a minor as a shareholder doesn't alter the general accounting requirements for the SCI.

In simpler terms, a minor integrated into a French SCI is subject to the same basic accounting and reporting demands as other partners, with all actions and communications handled through their legal representative. Full accounting and filing become necessary only if the SCI meets specific criteria, regardless of the partners' ages.

[2] https://www.impots.gouv.fr/portail/particuliers/d992[4] https://www.impots.gouv.fr/portail/particuliers/d670

  1. To fulfill the annual reporting responsibilities and ensure compliance with the tax authorities, it is highly recommended for an SCI to maintain accounting records, even if it isn't legally bound to do so, to monitor activities, cash flow, and for the sake of financial transparency.
  2. In a French SCI that includes a minor partner, the same general accounting requirements apply to the minor partner as to other partners. The actions and communications regarding the partnership and accounting will be handled through a legal representative on behalf of the minor.

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