Groupe Dupuis Paquin

Transfer of assets or shares to a company

Most of the time, the most appropriate vehicle to do business seems to be the joint stock company (the Company). It is not rare to see a small business operated by a single individual reaching a level of activity so high that his or her liability may need to be protected. In this case, the creation of a joint-stock company will protect the personal liability of the manager from the actions of his or her company.

The transfer of assets from the individual to a corporation may occur without any tax impact. Obviously, procedures under tax laws must be followed for this to be accomplished without incurring taxable provisions. The transfers must also be accompanied by the necessary documentation, including contracts with specific details - and must be recorded in the company books and records. Indeed, tax deferral is subject to very strict rules under tax laws.

Various transactions between corporations may also occur with a deferred tax impact, also known by experts as the "tax roll-over". It is completely legal and has a lot of advantages. The underlying idea is essentially to defer tax payable for as long as possible.

At DUPUIS PAQUIN, we will analyze as meticulously as possible the many aspects of transactions related to assets transfer in order to decide how to best organize and manage them.

In this practice area, our team meets your needs in several ways, including:

  • Advice on corporate procedures relating to roll-over transactions (e.g. resolutions, equity and company records);
  • Advice on tax procedures related to assets and shares roll-over;
  • Drafting contracts related to roll-over transactions.