How to Conduct a Company Split in Lebanon – Cosmos Legal Law Office Guide
Restructuring companies in Lebanon is a critical process for achieving strategic business goals and improving operational efficiency. A company split involves transferring the assets, liabilities, and obligations of an existing company to one or more new companies. Cosmos Legal Law Office explains the process and legal steps of company division in Lebanon in detail.
1. Types of Company Splits
Under Lebanese law, company splits generally occur in two forms:
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Full Demerger: The existing company is completely divided into two or more new companies. The original company is dissolved, and its assets are distributed among the new companies.
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Partial Demerger: A specific division or group of assets of the company is reorganized as a separate company while the original company continues its operations.
Cosmos Legal Law Office provides professional guidance to determine the most suitable type of split for your business.
2. Preparation of the Split Plan
A detailed plan is mandatory for a company split in Lebanon. This plan includes:
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A list of assets and liabilities subject to the split,
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Capital structure and shareholder distribution of the new companies,
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Transfer of employee rights and obligations,
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Allocation of financial and legal responsibilities.
Cosmos Legal Law Office ensures that the plan is robust from both legal and financial perspectives.
3. Shareholder and Management Approval
After preparing the split plan, approval from shareholders is required under Lebanese Company Law, usually requiring a qualified majority. Board of directors approval is also a legal necessity. Cosmos Legal Law Office ensures a smooth approval process and the complete preparation of required documents.
4. Legal Applications and Registration
Once approved, the company split must be submitted to the Trade and Companies Registry in Lebanon. Required documents include:
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Approved split plan,
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Shareholder approval documents,
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Registration documents of the new companies.
Cosmos Legal Law Office provides professional support throughout the registration process to ensure that all procedures are completed accurately.
5. Tax and Financial Obligations
Tax obligations must be carefully managed during the split. The Lebanese Revenue Administration supervises the taxation of assets and liabilities arising from the split. Cosmos Legal Law Office assists your business in managing tax obligations correctly and protecting against legal risks.
6. Protection of Employee Rights
Protecting employee rights during the split is legally mandatory. New companies must assume or appropriately restructure employee contracts. Cosmos Legal Law Office ensures that employee rights are secured in accordance with labor law.
Conclusion
Company splits in Lebanon are complex processes that require careful planning and precise legal guidance. Cosmos Legal Law Office provides professional support at every stage, from planning and registration to taxation and employee rights. Expert assistance is crucial to help your business achieve its strategic goals and protect against legal risks.
