Transfer of business assets and liabilities

Companies, economic interest groups (EIGs) and natural persons may transfer all or part of their business assets and liabilities to another structure (a company, etc.) within the framework of a professional assignment.

Who is concerned

Natural or legal persons engaged in an economic activity.

An operation to transfer business assets and liabilities to a foreign company, EIG or natural person is also possible, unless prohibited under the national law applicable to the foreign entity.

Prerequisites

The business assets and liabilities may only be transferred if the inventory shows that assets exceed liabilities.

How to proceed

Preparing for the transfer

The management bodies of each of the parties involved in the transfer must draw up draft terms of transfer.

The draft terms of transfer must specify/include:

  • the legal form of the business;
  • the name of the person/company;
  • the registered office or domicile of the parties involved in the transfer;
  • an inventory that clearly identifies the assets and liabilities to be transferred;
  • the total value of the assets and liabilities to be transferred;
  • details of any compensation or consideration.

The draft terms of transfer must be filed with the Trade and Companies Register (Registre de Commerce et des Sociétés – RCS) for publication in the Electronic Compendium of Companies and Associations (Recueil électronique des sociétés et associations – RESA) by each of the parties involved in the transfer at least one month prior to the date of the general meeting that is called to rule on the transfer.

Enactment of the transfer

The same rules as applicable to divisions, with the exception of the consequences of a division, apply to transfers when:

  • the parties to the transfer are companies having legal personality;
  • the partners of the transferring business or group receive shares or units in the receiving business.

The management body of each business involved in the transfer must draw up a report setting out the reasons for the transfer.

This report must explain the legal and economic grounds for the planned transfer and, accordingly, must specify/include:

  • the purpose and consequences of the transfer;
  • the transfer agreement;
  • the consideration offered for the transfer.

The transfer takes effect when the necessary decisions concerning the transfer have been taken by the parties involved.

Rights of creditors, bond-holders and holders of securities carrying special entitlements

In a transfer of business assets and liabilities, third parties' rights are protected.

Liability

When the allocation of an asset to be transferred cannot be determined on the basis of the draft terms of transfer, and agreement cannot be reached as to how it should be allocated, then the asset in question shall remain the property of the transferring entity.

When the allocation of a liability to be transferred cannot be determined on the basis of the draft terms of transfer, and agreement cannot be reached as to how it should be allocated, the parties to the transfer are jointly liable.

However, the receiving party's liability is limited to the amount of net assets allocated to them.

The parties to the transfer remain jointly liable for 3 years for the settlement of any debts incurred prior to the transfer.

Claims lodged against the transferring party will lapse 3 years after publication of the notice of transfer in the RESA. If the debt only becomes enforceable after the date of that publication, then the claim will lapse 3 years from the date it becomes enforceable.

Creditors

The parties to the transfer of business assets and liabilities must provide securities if so requested by the creditors, on condition that:

  • joint liability lapses before the end of the 3-year period;
  • the creditors can show that joint liability does not provide sufficient protection.

Creditors whose receivables are not included in the transfer may also request the provision of securities.

Creditors may lodge their applications with the President of the District Court having jurisdiction over the debtor's registered office.

The parties to the transfer who are required to provide securities may, instead, settle the debt, if doing so does not harm the interests of other creditors.

Publication of the notice of transfer

The transfer has no effect with respect to third parties until the required documentation has been published in the RESA.

Nullity of the transfer

The transfer of business assets and liabilities can only be nullified in the following conditions:

  • it must be declared null and void by order of the Court;
  • the written documentation or notarised documentation (where required) is lacking; or
  • the decision taken by the general meeting of one of the parties involved in the transfer is nullified.

Proceedings to nullify the transfer can no longer be brought:

  • after a period of 6 months from the date on which the transfer becomes binding on the party requesting its nullification; or
  • if the situation has been resolved.

When it is possible to rectify the irregularity by virtue of which the transfer may be declared null and void, the judge will allow the relevant parties a certain period of time to do so.

The court order nullifying the transfer must be published in the RESA.

Third-party appeals against the decision to nullify the transfer may no longer be lodged beyond 6 months of the publication of the decision in the RESA.

The decision nullifying the transfer does not, in itself, release the receiving party from their obligations.

The receiving party is liable for any obligations they incurred:

  • after the date on which the transfer took effect;
  • before the date on which the decision to nullify the transfer was published.

The transferring party is also bound by these obligations.

However, the receiving party's liability is limited to the amount of net assets allocated to them.

Effects of the transfer

The transfer automatically entails the transfer, to the receiving party, of the assets and liabilities listed in the inventory.

The transfer of intellectual and industrial property rights, and of real rights other than securities on movable and immovable assets, is only enforceable against third parties in the conditions provided for by the special laws governing these operations.

The transfer has no effect with respect to third parties until the required documentation has been published in the RESA.

Forms / Online services

Model of memorandum of association for a Luxembourg SA

To complete your application, the information about you collected from this form needs to be processed by the public administration concerned.

That information is kept by the administration in question for as long as it is required to achieve the purpose of the processing operation(s).

Your data will be shared with other public administrations that are necessary for the processing of your application. For details on which departments will have access to the data on this form, please contact the public administration you are filing your application with.

Under the terms of Regulation (EU) 2016/679 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, you have the right to access, rectify or, where applicable, remove any information relating to you. You are also entitled to withdraw your consent at any time.

Additionally, unless the processing of your personal data is compulsory, you may, with legitimate reasons, oppose the processing of such data.

If you wish to exercise these rights and/or obtain a record of the information held about you, please contact the administration in question using the contact details provided on the form. You are also entitled to file a claim with the National Commission for Data Protection (Commission nationale pour la protection des données), headquartered at 15, boulevard du Jazz L-4370 Belvaux.

By submitting your application, you agree that your personal data may be processed as part of the application process.

Modèle de statuts - SA

Modèle d'un acte constitutif d'une société anonyme de droit luxembourgeois

Les informations qui vous concernent recueillies sur ce formulaire font l’objet d’un traitement par l’administration concernée afin de mener à bien votre demande.

Ces informations sont conservées pour la durée nécessaire par l’administration à la réalisation de la finalité du traitement

Les destinataires de vos données sont les administrations compétentes dans le cadre du traitement de votre demande. Veuillez-vous adresser à l’administration concernée par votre demande pour connaître les destinataires des données figurant sur ce formulaire. Conformément au règlement (UE) 2016/679 relatif à la protection des personnes physiques à l'égard du traitement des données à caractère personnel et à la libre circulation de ces données, vous bénéficiez d’un droit d’accès, de rectification et le cas échéant d’effacement des informations vous concernant. Vous disposez également du droit de retirer votre consentement à tout moment.

En outre et excepté le cas où le traitement de vos données présente un caractère obligatoire, vous pouvez, pour des motifs légitimes, vous y opposer.

Si vous souhaitez exercer ces droits et/ou obtenir communication de vos informations, veuillez-vous adresser à l’administration concernée suivant les coordonnées indiquées dans le formulaire. Vous avez également la possibilité d’introduire une réclamation auprès de la Commission nationale pour la protection des données ayant son siège à 15, boulevard du Jazz L-4370 Belvaux.

En poursuivant votre démarche, vous acceptez que vos données personnelles soient traitées dans le cadre de votre demande.

Muster einer Gesellschaftssatzung einer SA

Ihre in diesem Formular erfassten personenbezogenen Informationen werden von der zuständigen Verwaltungsbehörde verarbeitet, um Ihren Antrag erfolgreich abzuschließen.

Diese Informationen werden von der Behörde für den zur Verarbeitung erforderlichen Zeitraum gespeichert.

Die Empfänger Ihrer Daten sind die im Rahmen Ihres Antrags zuständigen Verwaltungsbehörden. Um die Empfänger der in diesem Formular erfassten Daten zu erfahren, wenden Sie sich bitte an die für Ihren Antrag zuständige Behörde.

Gemäß der Verordnung (EU) 2016/679 zum Schutz natürlicher Personen bei der Verarbeitung personenbezogener Daten und zum freien Datenverkehr haben Sie das Recht auf Zugang, Berichtigung und gegebenenfalls Löschung Ihrer personenbezogenen Informationen. Sie haben zudem das Recht, Ihre erteilte Einwilligung jederzeit zu widerrufen.

Weiterhin können Sie, außer in Fällen, in denen die Verarbeitung Ihrer Daten verpflichtend ist, Widerspruch einlegen, wenn dieser rechtmäßig begründet ist.

Wenn Sie diese Rechte ausüben und/oder Einsicht in Ihre Informationen nehmen möchten, können Sie sich unter den im Formular angegebenen Kontaktdaten an die zuständige Verwaltungsbehörde wenden. Sie haben außerdem die Möglichkeit, bei der Nationalen Kommission für den Datenschutz Beschwerde einzulegen (Commission nationale pour la protection des données, 15, boulevard du Jazz L-4370 Belvaux).

Wenn Sie Ihren Vorgang fortsetzen, akzeptieren Sie damit, dass Ihre personenbezogenen Daten im Rahmen Ihres Antrags verarbeitet werden.

Who to contact

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