Legal division

Legal division

Briefly, a legal division means that the company (the legal entity) is divided. The major advantage of  a legal division is that you can divide your company with just one legal act. In this way you can transfer either part of or all of the assets.

In a legal division it is possible, either that the dividing company ceases to exist (the so-called split-up), or that the dividing company still exists (the split-off). In the following we shall explain the difference between both these forms of legal division.

The split-up

  • After the split, the “original” company ceases to exist
  • All the assets of the “original” company are transferred
  • At least two companies are created

The split-off

  • The “original” company still exists
  • A certain part of the assets are transferred to the new company
  • A least one new company is created (We refer to the “original” and the “new” company)
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