Contract for the contribution of a business to a company




A business may be transferred by its owner to a company which is incorporated or which already exists. The contribution of a business to a company constitutes a contribution in kind when it gives rise to the granting of shares in the company’s capital. In this case, the contributor then places his business at the disposal of the company for a specific period of time without however transferring ownership. In principle, he has the assurance of recovering his property in the event of dissolution of the company since it does not form part of the company’s assets and therefore escapes the action of creditors. When the contribution is analyzed as a sale of goodwill, giving rise to the payment of a price or the assumption of a liability, it is a contribution for consideration. The evaluation of the contribution by a contribution auditor is mandatory.


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