Conversion of the legal form - these are the things you need to consider

The conversion of legal form enables a company to change its legal form. In addition to provisions on the conversion of legal form, the Merger Act also contains provisions on demergers and the transfer of assets.

Conversion of legal form

The Merger Act provides for the conversion of legal form in Article 53. Permissible conversions are listed in Article 54. For example, it is permissible for a limited liability company (GmbH) to be converted into a stock corporation (AG). A corporation may convert itself into another corporation or into a cooperative. A general partnership may be converted into a corporation, a cooperative, or a limited partnership. A limited partnership can be converted into a corporation, a cooperative, or a general partnership. A cooperative can be converted into a corporation or an association.

What is required?

The reason for the change in legal form is that the legal structure previously used is no longer appropriate for the current situation. The Merger Act now makes it possible to change the legal form without having to go through liquidation. Liquidation could have adverse tax consequences. The conversion process is similar to that for mergers and demergers. The following documents are required for a conversion: