The need for reorganization arises not so often, and that's why the owners and the accountants have a variety of issues associated with this process. There are a lot of reasons for the founders to reorganize the enterprise: indebtednessof the enterprise, a change of ownership for the first entry into the securities market, the company merger by another company, or, on the contrary, a separate business setting up from the already existing ones.
Forms of legal entity reorganization
The choice of the form of reorganization depends primarily on the objectives that the owners place regarding the process. Merging of several establishments causes amalgamation of business into a single economic entity. In the process of company takeover, takes place devolution of assets and liabilities from one company to the other ones. The reorganizationis used if the company needs to change the business legal structure. In the reorganization process of the legal entity through takeover and reorganization, one company is winded up and its assets transfer to another one (already existing or newly established).
In the process of separation two or more legal entities are to be established instead of one functioning company. The reorganization of LLC in the selection form implies the foundation of a new company on the basis of already existing establishment with the transition of part of assets, while the establishment under reorganization continues operating.
Company reorganization stages
The way to reorganization is thorny and very complex, it requires sufficient labor contribution for competent preparation of all the documents and for legal conducting of the procedure itself. At the very beginning of the process, the owners take a resolution that reorganization is necessary indeed. The start of the procedure should be communicated to all the interested persons: to tax service, creditors and public media as well. The following is a very complex process of joint inventory, resulting in accounting report preparation. If your company requires business licenses, then it also requires to be renewed in the process of reorganization, like selection or split way.The amendments are to be registered by the tax authority upon the meeting of the founders of newly emerging legal entities.
The reorganization process involves not only the directly reorganized legal entities, but also a great number of other entities from the counterparts with which they cooperate to the public authorities. Due to the necessity to notify a sufficiently large number of partners, as well as owing to the large volume of documents to be prepared, the reorganization procedure usually lasts for three to four months. Appeal to the legal company “Your Lawyer” will greatly speed up and facilitate the process. After all, unlike most establishments facing reorganization, we went it through with our customers many times, and no wonder we have a thorough knowledge of all of its nuances and subtleties. We will conduct a thorough audit of your documentation, assist you to choose the best form of reorganization, taking into account the objectives and financial situation. We are ready competently and with the minimum derivation of forces from your side to conduct the reorganization process itself starting from notifications circulation to payment of national duty and amendmentsrecording.
Contact us by phone + 7 (495) 280-11-03 and specify the cost of the reorganization in the form of accession, spin-off, conversion, etc. “Your Lawyer”makes the reorganization easier and more comprehensible!