The Liquidation of a UG / GmbH Firmengruendung.de / Saturday, October 26, 2024 0 126 The cancellation of a limited liability entrepreneurial company, abbreviated as UG, is a multi-stage process regulated in the Commercial Code (HGB) and the Law concerning Limited Liability Companies (GmbHG). The following overview summarizes the essential steps and legal requirements: 1. Reasons for Cancellation The termination of a UG can be initiated through voluntary liquidation or by other legally regulated circumstances. A resolution for voluntary dissolution requires a shareholder resolution with a majority as defined by the partnership agreement. Without a contractual arrangement, a majority of 75% of the votes cast is required. 2. Liquidation Process After dissolution, the UG enters the so-called "liquidation stage," in which the company's assets are liquidated and all liabilities are settled. The steps in detail: Read more
Section 12 (4) of the Corporation Tax Act last applicable for the fiscal year 2020 Firmengruendung.de / Thursday, March 17, 2022 0 1961 § 12 para 4 was repealed in 2021. At the same time, the following changes were introduced: § 34 para 3c KStG§ 8 para 1 in the version of Article 3 of the Act of June 25, 2021 (Federal Law Gazette I p. 2056) is also to be applied to assessment periods before 2021 § 34 para 6d KStG§ 12 para 4 in the version applicable on June 30, 2021, is to be applied for the last time for the assessment period 2020.§ 8 para 1 sentence 4 KStGFor corporations as defined in § 1 para 1 with headquarters abroad, whose place of management is located domestically and which are not to be treated as legal persons under domestic corporate law due to lack of legal capacity, services and promises of services between the corporation and persons who earn income as defined in § 20 para 1 number 1 and 9 of the Income Tax Act from this corporation, are to be treated for the purposes of implementing taxation with income taxes like services and promises of services between a legal corporation and its shareholders. Read more
BGH Decision of February 16, 2021 - II ZB 25/17 Firmengruendung.de / Monday, May 3, 2021 0 2721 In the Federal Court of Justice's (BGH) decision dated February 16, 2021, the court addressed for the first time the issue of the legal capacity of a Limited company following Brexit. The reasoning in the decision states as follows: "The participant can no longer invoke the freedom of establishment regulated in Articles 49 and 54 TFEU after the United Kingdom's withdrawal from the European Union." According to Article 50(3) in conjunction with Article 1(3) TEU, the TEU Treaty ceases to apply to a member state that has withdrawn from the European Union from the day the withdrawal agreement comes into effect, or otherwise two years after the notification of withdrawal. Thus, the EU legislator has made a generally applicable explicit regulation concerning the temporal validity of the TEU Treaty. In the withdrawal agreement, the United Kingdom and the European Union agreed that the United Kingdom... Read more
Workers' Compensation Board Limited Firmengruendung.de / Monday, March 22, 2021 0 2850 If you, as an entrepreneur of a Limited company, have received a notice from the professional association in which you are personally assessed because the legal capacity of the Limited has allegedly been lost, we recommend filing an objection. You can download a possible non-binding template of such an objection here... Read more
LTD shareholders as a company subject to VAT according to § 2 UStG Firmengruendung.de / Monday, March 8, 2021 0 3287 In the previous post, we reported on the information letters from the tax offices regarding the Federal Ministry of Finance's letter dated December 30, 2020. These letters are currently being supplemented by letters informing the LTD shareholder personally of a VAT number, or announcing the allocation of VAT numbers. Usually, these letters refer to the Federal Ministry of Finance's letter dated December 30, 2020, and additionally note that the LTD will continue to be treated as a subject of corporate tax due to the Brexit Tax Accompanying Act. As a result, the tax offices assume that taxes for LTDs will be declared using two tax numbers in the future. The existing tax number of the LTD will continue to be used for the corporate tax declaration. A VAT number assigned personally to the entrepreneur will be used for VAT declarations. These letters typically do not come with legal remedy instructions but are likely to have regulatory content and thus represent an administrative act against which legal remedies are permissible. You can download a non-binding sample of a corresponding objection further below. Before possibly initiating legal action, you should ... Read more