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Reorganisationofcompanies                                                                                                                                        

                   Measure                                                      Legalfeatures                                                              Steps                                    Taxaspects
Transfor‐         Merger              ‐ Allassetsandliabilitiesoftransformingcompany(TC)aretransferredbyactoflawto              ‐ MergerAgreement(orfinal             ‐ Ifapplicable:continuanceofbook
mation                                  acquiringcompany(AC)withoutrequiringfurthertransferactsorapprovalbythirdparties             draft)mustbesubmittedto              values.
according                             ‐ ShareholdersofTCbecomeshareholdersofAC;TCceasestoexist                                        workscouncil(eg.20.07.)             ‐ Ifapplicable:noincometaxationfor
toTransfor‐                           ‐ Maybecarriedoutwithretroactiveeffect                                                                                                      shareholders
mationAct                                                                                                                                     ‐ Mergerreport,mergeraudit            ‐ Forfeitureoflossesandlosscarry‐
                                                                                                                                                 (waiverpossible)                        forwardsofTC
                 Split‐off          ‐ (Only)suchassetsandliabilitiesaslistedintheTransformationAgreementaretransferred                                                   ‐ Dto.,butcontinuanceofbookvalues
                                          byactoflawfromTCtoAC                                                                         ‐ Appointmentwithnotary(eg.             andfreedomoftaxesonlyif
                                       ‐ ShareholdersofTCbecomeshareholdersofAC                                                            30.08.):notarialrecordingof          transferredassetsqualifyasabusiness
                                       ‐ Maybecarriedoutwithretroactiveeffect                                                             mergeragreement                        branch+retentionperiodsarekept
                 Drop‐down           ‐ (Only)suchassetsandliabilitiesaslistedintheTransformationAgreementaretransferred          mergerresolution                     =Contribution
                                          byactoflawfromTCtoAC                                                                         ‐ applicationandregistrationwith      ‐ Transferofbusinessbranch:seesplit‐
                                        ‐ TCbecomesshareholderofAC                                                                          commercialregister(CR)                 off
                                        ‐ Maybecarriedoutwithretroactiveeffect                                                                                                     ‐ Retentionperiodstobekeptforsales
                                                                                                                                                                                            andothermeasures
                 Conversion        ‐ Notransferofassetstakesplace                                                                    ‐ MergerAgreement(orfinal             ‐ Partnershipintocorporation:seedrop‐
                                       ‐ Legalidentetyremainsunchanged                                                                       draft)mustbesubmittedto              down
                                       ‐ Maybecarriedoutwithretroactiveeffect                                                              workscouncil(eg.20.07.)             ‐ Corporationintopartnership:generally
                                                                                                                                                ‐ Mergerreport,mergeraudit              seemerger
                                                                                                                                                  (waiverpossible)
                                                                                                                                                ‐ Notary,CR
Accretion       Simple              ‐ ShareholderAofa2‐personpartnership(“A&Bpartnership“)exits                                  ‐ Shareholderagreement                  ‐ Dependentonconstellation:disclosure
                  Accretion          ‐ Legalconsequence:partnershipceasestoexist;assetsaretransferredbyactoflawtoB            ‐ Whereapplicable:CR                     ofhiddenreserves
                                                                                                                                                  (declarative)
                 Expanded           ‐ ShareholderAofa2‐personpartnership(“A&Bpartnership“)contributeshisinterestintoB           ‐ Contributionagreement                 ‐ Dependentonconstellation:if
                  Accretion          ‐ Legalconsequence:partnershipceasestoexist;assetsaretransferredbyactoflawtoB             ‐ CapitalincreaseinB(if                applicableseedrop‐down
                                                                                                                                                  applicable,notarial)
                                                                                                                                                ‐ IfapplicableCR
Corporate        Profit‐and‐Loss     ‐ Contractualgroupofenterprises                                                                     ‐ ConclusionofPLTA                     ‐ Preconditiontotheformationofatax
Group            Transfer            ‐ Agreementunderwhichonecompanyagreestotransferitsentireprofittoanother                     ‐ Consentofshareholdermeeting           unit(Organschaft)
contracts       Agreement            company                                                                                                (notarial)                             ‐ Atleast5years’term
                  (PLTA)              ‐ Controllingcompanyowescompensationoflosses,protectionofcreditors,compensation                ‐ Applicationandregistrationwith      ‐ OtherConditionstobemet
                                         toothershareholders                                                                                   commercialregister(CR)               ‐ Formalitiestobestrictlykept!
                 Domination‐          ‐ Contractualgroupofenterprises                                                                       ditto.                                  IsolatedDominationAgreementof
                  Agreement           ‐ Agreementunderwhichonecompanyagreestosubmititsmanagementtoanother                                                                     importanceonlyforVAT‐purposes
                                         company(eg.facilitatingCashPooling)
                                       ‐ Controllingcompanyowescompensationoflosses,compensationtoothershareholders
        

    ThissurveyisintendedtoprovideabriefoverviewonreorganizationissuesunderGermanlaw.Itisnotdesignedtoserveasabasisofbusinessdecisions.Noresponbilityistakenforthecorrectnessofthisinformation.
    Status:04/2012
    
    ©WEINERTLEVERMANNHEEG,Rödingsmarkt9,20459Hamburgwww.wlh‐legal.de                                             
    Contact:Rechtsanwalt|SteuerberaterDr.VolkerHeegVH@WLH‐Legal.de

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Reorganisation eng

  • 1. Reorganisationofcompanies Measure Legalfeatures Steps Taxaspects Transfor‐ Merger ‐ Allassetsandliabilitiesoftransformingcompany(TC)aretransferredbyactoflawto ‐ MergerAgreement(orfinal ‐ Ifapplicable:continuanceofbook mation acquiringcompany(AC)withoutrequiringfurthertransferactsorapprovalbythirdparties draft)mustbesubmittedto values. according ‐ ShareholdersofTCbecomeshareholdersofAC;TCceasestoexist workscouncil(eg.20.07.) ‐ Ifapplicable:noincometaxationfor toTransfor‐ ‐ Maybecarriedoutwithretroactiveeffect shareholders mationAct ‐ Mergerreport,mergeraudit ‐ Forfeitureoflossesandlosscarry‐ (waiverpossible) forwardsofTC Split‐off ‐ (Only)suchassetsandliabilitiesaslistedintheTransformationAgreementaretransferred ‐ Dto.,butcontinuanceofbookvalues byactoflawfromTCtoAC ‐ Appointmentwithnotary(eg. andfreedomoftaxesonlyif ‐ ShareholdersofTCbecomeshareholdersofAC 30.08.):notarialrecordingof transferredassetsqualifyasabusiness ‐ Maybecarriedoutwithretroactiveeffect  mergeragreement branch+retentionperiodsarekept Drop‐down ‐ (Only)suchassetsandliabilitiesaslistedintheTransformationAgreementaretransferred  mergerresolution =Contribution byactoflawfromTCtoAC ‐ applicationandregistrationwith ‐ Transferofbusinessbranch:seesplit‐ ‐ TCbecomesshareholderofAC commercialregister(CR) off ‐ Maybecarriedoutwithretroactiveeffect ‐ Retentionperiodstobekeptforsales andothermeasures Conversion ‐ Notransferofassetstakesplace ‐ MergerAgreement(orfinal ‐ Partnershipintocorporation:seedrop‐ ‐ Legalidentetyremainsunchanged draft)mustbesubmittedto down ‐ Maybecarriedoutwithretroactiveeffect workscouncil(eg.20.07.) ‐ Corporationintopartnership:generally ‐ Mergerreport,mergeraudit seemerger (waiverpossible) ‐ Notary,CR Accretion Simple ‐ ShareholderAofa2‐personpartnership(“A&Bpartnership“)exits ‐ Shareholderagreement ‐ Dependentonconstellation:disclosure Accretion ‐ Legalconsequence:partnershipceasestoexist;assetsaretransferredbyactoflawtoB ‐ Whereapplicable:CR ofhiddenreserves (declarative) Expanded ‐ ShareholderAofa2‐personpartnership(“A&Bpartnership“)contributeshisinterestintoB ‐ Contributionagreement ‐ Dependentonconstellation:if Accretion ‐ Legalconsequence:partnershipceasestoexist;assetsaretransferredbyactoflawtoB ‐ CapitalincreaseinB(if applicableseedrop‐down applicable,notarial) ‐ IfapplicableCR Corporate Profit‐and‐Loss ‐ Contractualgroupofenterprises ‐ ConclusionofPLTA ‐ Preconditiontotheformationofatax Group Transfer ‐ Agreementunderwhichonecompanyagreestotransferitsentireprofittoanother ‐ Consentofshareholdermeeting unit(Organschaft) contracts Agreement company (notarial) ‐ Atleast5years’term (PLTA) ‐ Controllingcompanyowescompensationoflosses,protectionofcreditors,compensation ‐ Applicationandregistrationwith ‐ OtherConditionstobemet toothershareholders commercialregister(CR) ‐ Formalitiestobestrictlykept! Domination‐ ‐ Contractualgroupofenterprises ditto. IsolatedDominationAgreementof Agreement ‐ Agreementunderwhichonecompanyagreestosubmititsmanagementtoanother importanceonlyforVAT‐purposes company(eg.facilitatingCashPooling) ‐ Controllingcompanyowescompensationoflosses,compensationtoothershareholders ThissurveyisintendedtoprovideabriefoverviewonreorganizationissuesunderGermanlaw.Itisnotdesignedtoserveasabasisofbusinessdecisions.Noresponbilityistakenforthecorrectnessofthisinformation. Status:04/2012 ©WEINERTLEVERMANNHEEG,Rödingsmarkt9,20459Hamburgwww.wlh‐legal.de Contact:Rechtsanwalt|SteuerberaterDr.VolkerHeegVH@WLH‐Legal.de