SCEA: civil society farming

In France, the SCEA is a civil society operating in agriculture. What are the statutes of this type of enterprise and what are the steps and prerequisites for creating an ACS? You are told everything about civil society in agriculture.

Article plan

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  • Definition of the civil society of farming
  • Contributions to civil society of farming The
  • conditions and prerequisites for creating a CEA
    • Employee Responsibility
    • Stewardship of the Civil Society of Agriculture
  • Creating a civil farming society
    • The benefits of creating a civil farming society SCEA
    • : all the disadvantages
  • The tax question: and the SCEA?

Definition of civil society in agriculture

A CEA has a special legal status which concerns only agricultural activity. The status of SCEA has both advantages and disadvantages that need to be considered before any business is created. The characteristics of the legal status of the SCEA:

  • To create a CEA, no minimum or maximum contribution is required, so the company’s share capital is not a constraint;
  • Agricultural novices are encouraged to embark on the status of SCEA;
  • However, a variable or fixed share capital, minimum and maximum, may be defined in the articles of association of the company;
  • SCEA is a company with more flexible status than other legal statutes;

Contributions to agricultural civil society

As with any company, contributions can be made. For civil society farming, it is good to know that these contributions can be made in kind, in cash or in industry.

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The cash contributions relate to pure financial contributions (pecuniary aspect). Contributions in kind can be made in land heritage, for example. One of the partners may decide to make a personal or immovable contribution. Finally, the contribution to industry means that in the AECS, the contribution will be of know-how or work will be provided by the partner concerned.

The conditions and prerequisites for creating an AECS

To start farming, you can create your own SCEA. Two persons (natural or legal) are required, at least, to establish a civil society for farming. This is not the case with the EARL : it can be created if needed only one natural person. The SCEA can therefore be made up of two legal persons.

No age rule is specified when creating an SCEA. Nevertheless, each of the associates present in the agricultural civil society must be in full possession of his or her physical and mental abilities. CEA partners may be minor or major.

Employee Responsibility

No limits are specified on the responsibility of each partner. It should be noted that out of 2 natural persons who have made a significant cash contribution and the other a very small contribution, both persons are at risk of loss in the event of debt .

Stewardship of Agricultural Civil Society

Good news for some, disadvantage for others: civil society farming is characterized by stewardship that is not limited to one person . The articles of association must specify the name of the manager or managers if the latter have not been appointed at the constituent general meeting.

Creating a civil farming society

Creating a CEA involves drafting the articles of association of the company. Your business defined as SCEA then has access to a number of benefits.

The benefits of creating a civil farming society

  • Creating a civil society for farming involves simplified formalities;
  • 2 people create the SCEA;
  • The rules of the enterprise can be defined freely by mutual agreement;
  • These rules must appear in the articles of association of the company at the time of the establishment of the enterprise. Any amendment must be included in the statutes, but apart from that, the management of the company in SCEA is quite free;
  • In terms of area, no operating limits should be specified at the time of the creation of the CEA;
  • Heritage: transmitting a CEA to his descendants is a simple formality that should not put you off.

It should be noted that when creating an AECS, however, there are some disadvantages.

SCEA: all the disadvantages

Yes, there are disadvantages to creating an SCEA, you know well. In this beautiful painting, remember that:

  • There is no limit of liability, which may jeopardize the sense of security of associates within the AECS;
  • In the event of indebtedness of the civil society of agriculture, employees (employees) and managers must all participate at the same level in order to repay the debts;
  • Unlike of other legal statutes, by entering the SCEA, the partners must abandon their statutes as individual managers of farms. This criterion can be perceived in a very negative way, particularly for farmers with a strong family history around their holding;

The tax question: and the SCEA?

A CEA is subject to the income tax system. It is possible for any agricultural civil society leader to choose corporate tax . Once this choice is made, it is not reversible. A real reflection must therefore be given before taking any decision on the SCEA tax regime.

Creating and managing an AECS is simple. Weigh the pros and cons with the status of the EARL and make your choice based on your agreements and disagreements between potential associates.

Ready to embark on the SCEA adventure ? Official information is available from the government if you wish to embark on the creation of a civil farming society.