Business succession: understand how it works

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Business succession is a challenging time for companies and the lack of legal support can generate a series of conflicts, both among members of the corporate structure and with employees and business partners. Understand how this process works and how to plan it properly.

What characterizes business succession?
Business succession is the transfer of control and ownership of a company, which can be motivated by factors such as:

retirement or death of the founder;
sale of the company;
merger with another company;
changes in the corporate structure .
It is essential that this process be conducted in a planned gambling data singapore manner to ensure compliance with applicable laws and regulations. In fact, the Brazilian Civil Code establishes rules for business succession, which we will discuss later.

What are the types of business succession?
There are three types of business succession, which vary depending on the nature of the company and the objectives of those involved. They are:

Internal succession: when control of the company is transferred to family members or employees of the organization;
External succession: when control of the company is transferred to external buyers or partner companies;
Merger or incorporation: when one company joins another to form a new organization with its own structure and objectives.
Main rules for business succession
Brazilian law establishes some important rules for business succession. Among the main provisions, we have:

upon taking over the company, the successor becomes responsible for existing debts;
when transferring a company by inheritance, the successor must present the former owner's death certificate and the formal division document or court order to the competent bodies;
in the event of the death of the entrepreneur , the business succession will be governed by the rules set out in the Civil Code and in the deceased's inventory.