Forming as Group and Holding Firmengruendung.de / Friday, February 29, 2008 0 4834 The designation "Group" can be used in a Limited's name if the company holds shares in at least two other companies. The designation "Holding" can be used in a Limited's name if it holds at least 51% of the shares in at least one other company. Read more
Examples of Designing Corporate Groups Firmengruendung.de / Friday, February 29, 2008 0 4347 The following examples are intended to demonstrate some practical possibilities and thus provide inspiration for finding individual solutions. They do not replace individual consultation on legal and tax issues. We are available for individual legal advice. Please also note that abusive behavior in business transactions can lead to personal liability. A good example of this is a judgment from Hamburg. In this case, an entrepreneur founded two companies. One handled all the income and the other all the liabilities. This was intended to disadvantage creditors. Rightly so, this led to a claim against the personal assets of the entrepreneur. .... read more Read more
Introduction to Corporate Groups Firmengruendung.de / Friday, February 29, 2008 0 3851 Building a corporate group (English: Group) means distributing business risks and/or profit centers across various (subsidiary) companies. It also allows for a clear separation of business units. One of the classic models is certainly the division of the company into holding and operating companies. In addition to the marketing benefits of a corporate group, this setup can reduce risks, increase discretion, and optimally manage market appearances. It is no coincidence that larger companies have always utilized the possibilities of forming groups or holdings. However, for small businesses, the formation of a corporate group with German companies, while highly recommended on a case-by-case basis, has often been too cumbersome. Here, the UG (or possibly the Limited) can play to its strengths: For manageable incorporation costs, almost any conceivable configuration can be quickly and cost-effectively established. Read more