The law firm KORGAN successfully carried out a reorganization in the form of a merger of one legal entity with another
In our article, we would like to talk about the main legal points that should be paid attention to during reorganization.
To begin the reorganization procedure, the participants of legal entities make a decision, submit an announcement to the national newspaper, and notify creditors in writing of the decision taken to collect and satisfy their claims.
As a result of the reorganization of two or more legal entities in the form of accession, the activities of one or more legal entities are terminated.
The termination of the activities of the acquired legal entity entails the termination of rights and obligations by transferring them to the acquiring party.
The authorized capital is increased, the composition of the participants changes if the two legal entities had different participants. A constituent agreement is concluded, which reflects all issues related to the definition of rights, obligations and responsibilities.
It is important to understand that if a share in the authorized capital is seized or a share in the authorized capital is pledged, the termination of activities is not registered, and the reorganization is considered not completed until the causes are eliminated.
Advantages of reorganization in the form of accession:
- no tax audit of the legal entity terminating its activities
- pooling of resources
- reduction in the number of tax returns, financial statements
- development of the brand of a large company
Dear entrepreneurs! If you need to reorganize a legal entity, please contact our company’s specialists by phone +7 700 50 00 553