What are the disadvantages of SCI ?
To create an SCI at least 2 partners will be required, whether they are individuals or companies.
As for any company, the procedures relating to the formalities of creating an SCI can be complex and are relatively cumbersome.
The management of purchased goods is the only use of an SCI, it restricts the field of activity. It is not possible to use this form of company to carry out the purchase and resale of real estate, an activity related to real estate dealers.
Unlike other corporate forms, in an SCI the partners will be responsible for its debts on their personal assets. The partners will be proportionally liable, up to the percentage of share capital held, in the event of impossibility of repayment of a bank loan on the part of the SCI.
In short:
· The creation of an SCI requires at least 2 partners;
· The procedures relating to the formalities of creating an SCI can be complex ;
· The SCI restricts the field of activity;
· The partners will be responsible for the debts of the company.
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