As an entrepreneur, you face specific challenges every day. Your business requires decision-making and the review of existing structures at all times. In doing so, not only business management, but also legal aspects must be taken into account. Professional legal advice is therefore needed to avoid mistakes – starting with the formation of your company, throughout the implementation of structural measures and right up to company succession.
Formation of the company
The first step is the formation of your company. It is the foundation of lasting success. When it comes to choosing the legal form that is most suitable for your business there are numerous factors to consider, such as company law requirements, liability issues, as well as accounting and tax law. On the basis of a suitable legal form, the legal set-up of your company must be adapted to your individual needs, for example, the distribution of the shareholders' voting rights, the power of management and representation or the conditions for a change of shareholders. Once the articles of association have been drawn up, your company must finally be entered into the commercial register. In addition, regular notification obligations, for example to the tax office, have to be fulfilled.
The formation of companies is a focal point of notarial activity. The involvement of the notary is prescribed by law for the establishment of companies. Your notary will provide you with highly qualified advice on all legal questions relating to the formation of a company. Following the notarisation, your notary also takes care of the necessary execution of the formation deed, in particular the entry in the commercial register.
Thanks to digitalisation, your entry in the commercial register can be processed to the court by the notary in electronic form without any loss of time. In most cases, your company is entered into the commercial register just a few days after signing at the notary's office – so you can solely concentrate on your business.
Change of structure
Nothing endures but change – this becomes especially true for companies. Your notary therefore also advises you on structural changes, such as amendments to the articles of association, measures of raising or decreasing the company's capital or transformation processes. Your notary drafts the necessary deeds and ensures their execution in the relevant registers – from company transformations to cross-border mergers.
Handing over one's own business to the next generation is one of the most difficult tasks an entrepreneur can face. Handing over the business "with a warm hand", i.e. while the owner is still alive, is usually the preferable choice for a successful succession. Yet, many entrepreneurs avoid dealing with the complex issues of company, tax, inheritance and family law. In addition, they are sometimes reluctant to think about the idea of stepping down. The risks of an unresolved succession are enormous, though. A failed business succession can ruin the life's work in a short time.
With timely planning, the management qualities of the intended successor can be realistically assessed, a smooth transition can be ensured and the current owner has the opportunity to take corrective action in order to address any undesirable developments. Last but not least, tax allowances can be used efficiently with early planning. Finally, the issues of the transferor's financial security in retirement and his exemption from liability must not be overlooked in the context of a well-balanced contractual arrangement.
Due to the interplay of corporate, inheritance and family law, business successions are very demanding for the legal advisor. Since these areas of law belong to the core areas of notarial activity, your notary is the ideal counsellor.
No place for model contracts
The internet has become the primary source of information for almost all aspects of life. For many questions users confidently turn to the world-encompassing community. But caution is advised when using standardised forms and model contracts from the internet. The notary will provide a tailor-made contract which takes into account the specific facts of the case.