{"id":22368,"date":"2022-01-31T23:00:00","date_gmt":"2022-01-31T22:00:00","guid":{"rendered":"https:\/\/fiala.de\/company-succession-generation-change-in-family-businesses\/"},"modified":"2022-01-31T23:00:00","modified_gmt":"2022-01-31T22:00:00","slug":"company-succession-generation-change-in-family-businesses","status":"publish","type":"post","link":"https:\/\/www.fiala.de\/en\/company-succession-generation-change-in-family-businesses\/","title":{"rendered":"Company Succession: Generation Change in Family Businesses"},"content":{"rendered":"
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How to ensure the continuity<\/h2>\n

Germany, the country of medium-sized companies, <\/strong> owner-managed family businesses <\/strong>and difficult company succession<\/strong>. There is hardly a country that boasts as much about the strength of its middle class<\/strong> as Germany. At the same time, however, despite all the pride in the middle class, no other “social class” <\/strong>is asked to pay as much. When it comes to the subject of money<\/strong>, it is a well-known fact that friendship ends, and even more so when it comes to the subject of taxes<\/strong>.<\/p>\n

So what should entrepreneurs<\/strong> do to ensure the continuity of their family business when succession is imminent<\/strong>?<\/p>\n

There are several aspects that are important<\/strong> in a business succession<\/strong>. Besides the clarification of the successor<\/strong> and a possible financial compensation<\/strong> for the family members leaving empty-handed, the core legal and tax aspects<\/strong> have to be discussed before the actual succession. In this context, business aspects<\/strong> should also be taken into account, especially against the background of a possible tax burden<\/strong>.<\/p>\n

The tax aspects of business succession<\/h3>\n

If a succession arrangement has been made in<\/strong> which property<\/strong> is transferred<\/strong>, then there are several taxes that may apply to both the current business owner<\/strong> and the future successor<\/strong>. As a rule, the following taxes<\/strong> are levied in the context of a business transfer: Income tax<\/strong>, real estate transfer tax,<\/strong> gift and\/or inheritance tax<\/strong>.<\/p>\n

Tax burdens<\/strong>, especially on the part of the company or business, can have serious consequences<\/strong> for the continued existence and profitability of the company. Comprehensive advice in the run-up to a company succession<\/strong> is indispensable in order to avoid a break-up or sale of the family business.<\/p>\n

The declared aim<\/strong> must be to keep any tax burden as low<\/strong> as possible.<\/p>\n

The legal aspects of business succession<\/h3>\n
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In the run-up to a company succession<\/strong> that envisages the company remaining<\/strong> in the family, it is also important to thoroughly examine the legal aspects of<\/strong> the succession arrangement. In particular, the company law, the chosen legal form of the company<\/strong> as well as the already concluded shareholder agreements have to be reviewed carefully in order to ensure a smooth company succession<\/strong>.<\/p>\n

Company succession: How we support you<\/h3>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n
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