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Chengdu Company Equity Transfer

Update Date:2016-3-9 9:11:48 Source:Tannet (Malaysia) Sdn Bhd Views:682

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Chengdu Company Equity transfer refers to the activity that the Company's shareholders will transfer their own shares to others in accordance with the law, so that others will become shareholders of civil legal act. Equity transfer is a frequent way for shareholders to exercise their options. According to the Chinese "Company Law", Shareholders are entitled to transfer their entire investment or part of their investment to others through legal ways. Equity Transfer Agreement refers to the agreement reached by the transferor for the purpose of reaching the delivery options on and receiving the intended capital.

 

Advantages of Company Equity Transfer in Chengdu

1. Reduced cost of acquisition

2. Achieve the purpose of M & A, and also get the price rent

 

Equity Transfer Procedures for Chengdu companies

Six procedures are included:

1. Negotiation.

This step is to find trading partners, the subject of trade, price and other basic content to reach a preliminary intention.

2. Reach an agreement of over a half shareholders

3. Other shareholders give up their rights of first refusal.

This step can be solved together with the second step.

4. Sign an equity transfer agreement.

5. Record the changes to the company equity transfer

6. Apply to the industry and commerce registration department for equity transfer

 

Materials needed for LLC Equity Transfer in Chengdu

To ensure the success of HK company equity transfer, Limited Liability Companies should prepare a name list of shareholders with the following information: name and resident address of shareholders; contributed capital of shareholders; the number of capital contribution certificate.

 

The Pricing Principles of Chengdu Company Equity Transfer

The price of equity transfer is not equal to the registered capital or the actual expense It is composed of both sides (the transferor, transferee) according to the actual investment, registered capital, the company's assets, the future profitability, intangible assets and other factors determined in consultation The price can be more or less than the registered capital, the capital and the assets of the company. The company has the right to require shareholders without enough capital to complement the required capital. Shareholders with enough capital can also enjoy the right.

 

Tax Treatment of Chengdu Company Equity Transfer

1. For Chinese-funded enterprises

For Chinese-funded enterprises, three types of taxes are needed to pay:

1.1 enterprise income tax

1.2 deed tax

1.3 stamp tax

 

2. For personals

If the transferor is a person, he just needs to pay personal income tax, in accordance with the 20% payment way.

 

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