Business transfers and holding companies: pitfalls to avoid

The contribution of a company’s shares to a holding company frequently accompanies its transfer, whether in order to avoid the direct entry of the donees into the capital, to benefit from the legal and tax leverage offered by such a structure, to organize a group, and so on. In this context, what is the impact of the chronological direction of the donation and contribution operations?

Victor ANTIN, notary in Lyon, proposes to answer this question. In light of the requirements of the Dutreil exemption regime and the fate of unrealized capital gains attached to the securities transferred, the order of operations is of decisive importance when using a holding company for a business transfer, underlining the need for a detailed analysis of each situation.

This article is only available in French.