Most private companies begin as sole owner-managed entities; after a few years, some grow to involve family members working for the business, handling different departments or types of operations, or expanding to encompass more than one business under the company name. Family members might wish to take a specific department forward independently from the others. For various reasons, a demerger might be considered, with the goal of executing it as tax efficiently as possible for the shareholders.
Splitting a company - Tax efficiently
Splitting a company - Tax efficiently
Splitting a company - Tax efficiently
Most private companies begin as sole owner-managed entities; after a few years, some grow to involve family members working for the business, handling different departments or types of operations, or expanding to encompass more than one business under the company name. Family members might wish to take a specific department forward independently from the others. For various reasons, a demerger might be considered, with the goal of executing it as tax efficiently as possible for the shareholders.