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Company Reorganization

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Reorganization of the legal entities has several advantages. Firstly, it allows improvement of the competitiveness of the business due to the concentration of financial and administrative resources, exclusion of duplicate departments and, as consequence, reduction of costs, improvement of controllability and so on. Secondly, the large company has more possibilities to receive the bank credits with favorable conditions than the small company. But the growth of business involving several independent companies may result in loss of control over their operations as well as in the complication of the documents circulation and significant increase of costs for management personnel.

Company reorganization may have the following forms:

Accession – in this case the operations of the affiliated legal entity are discontinued and the new legal entity is not established.
Merger – in this case one or several legal entities are established with the discontinuance of the operations of all former companies.
Transformation – change of the legal form of legal entities.
Split - discontinuance of the operations of legal entity with the foundation of one or several new entities.
Spin-off – foundation of one or several legal entities without discontinuance of the operations of the reorganized legal entity.

Reorganization stages:

Holding of the general meeting and consultations in respect of all reorganization issues;
Notification of the creditors, including the taxation inspectorate, about the reorganization,
Execution and approval of separation balance sheet or certificate of transfer;
Registration of the company reorganization.

We provide the legal support for transactions in respect of alienation /acquisition of shares:

legal advice on the transactions with shares (allocation, purchase, sale);

arrangements for increase or reduction of the authorized capital, introduction of shares into the authorized capital;

legal support of transactions with stock (transfer of share from one member to another or to the third persons, pledge of share, charge);

examination of shareholder’s register for the purpose of compliance of the documents and information to the current legislation;

appeal of registrar’s actions.

Before the company reorganization it is required to settle different legal, organizational and tax problems. It is very important to select the reorganization date correctly, thoroughly supervise the settlements during the reorganization, prepare for the tax audit. Besides you should be aware of violations of the law that may result in the invalidation of the reorganization. Our company will help you to reorganize your business within reasonable period of time and avoid additional expenses.

E-mail: register@wenzelgroup.com