Choosing the right legal structure is a key factor for the success and long-term stability of any business. It impacts not only liability, taxation, and financing options but also the scope and intensity of compliance obligations. However, businesses are constantly evolving – whether due to growth, changing market conditions, or new legal and tax requirements. In many cases, restructuring a company’s legal form can offer strategic advantages and open up new business opportunities.
German corporate restructuring law provides various options for companies to adapt their structure to new circumstances without losing their corporate identity. These include:
- Change of legal form – e.g., converting from a GmbH (limited liability company) to an AG (stock corporation) or vice versa
- Merger – combining two companies into a single entity
- Demerger – splitting a company into multiple legal entities
- Contribution of assets – transferring a company or parts thereof to another legal entity
Unlocking new opportunities through restructuring
There are numerous reasons why a corporate restructuring may be necessary or beneficial, such as:
- Tax optimization: Certain legal forms offer tax benefits or allow for more favorable profit distribution.
- Limiting liability: Choosing the right legal form can reduce personal liability risks for business owners.
- Capital raising: Some corporate forms provide easier access to investors or capital markets.
- Business succession: The right structure can simplify succession planning or the sale of the company.
- Growth & expansion: A reorganization can facilitate partnerships or entry into new markets.
Structuring corporate transformations with legal and economic certainty
Corporate restructuring is a complex process that requires careful legal and tax planning. In addition to complying with statutory requirements, contractual and commercial considerations must be taken into account. Mistakes in implementation can have serious consequences, including tax disadvantages or legal uncertainties.
Our law firm will guide you through the entire restructuring process – from strategic planning and drafting the necessary agreements to implementation and registration with the commercial register (Handelsregister). Together with experienced tax advisors, we develop tailored solutions that support your business goals and ensure legal certainty.
Take advantage of our expertise and let us advise you – for a future-proof corporate structure.
Contact us with any questions regarding corporate restructuring!
