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Tax Corporate Lawyer in UAE
Moving a business line between UAE group companies
A group may want to move a division into a separate company before bringing in an investor. LEXPERT helps directors compare a transfer of shares with a transfer of the underlying business and identify the corporate tax questions to resolve before either route is approved.
Define what the new company will own
Draw up a schedule of assets, customer contracts, employees, debts and intellectual property. Add the current legal owner and the intended recipient beside each item. A division shown separately in the management accounts may still depend on contracts signed by another group company.
Plan the changeover as well as the transfer
Agree a cut-off for invoicing, collections and expenses. Map the proposed consideration to the valuation and identify any relief or election that needs separate analysis. The board can then assess the steps alongside the cost and disruption of moving the business.
Frequently asked questions
Can the old company keep collecting outstanding invoices?
Identify who owns each receivable after completion and whether the old company will collect on behalf of the new owner. Document how cash will be reconciled and passed on.
What should directors see before approving a transfer?
A before-and-after ownership chart, the proposed consideration, the transfer schedule and a list of unresolved tax and consent questions give directors a basis for the decision.
