Key points at a glance

• Plan your succession early and find someone to guide you through the process.
• Choose the right succession model (family, employees, external sale ).
• Analyze your business and make optimizations as needed.
• Involve specialists early on (tax, legal, notary).
• Report changes to the Commercial Register.

Requirements and Guidelines

Depending on the legal form and succession model, different decisions and contracts are required. For corporations, changes may be necessary in the board of directors, management, or ownership structure. For partnerships and sole proprietorships, special attention must be paid to personal liability, contracts, and tax transitions. If succession is combined with changes to the registered office, company name, or purpose, additional amendments to the Commercial Register are required.

Corporations (AG, GmbH)

In the case of a stock corporation (AG) or a limited liability company (GmbH), the following points may change:

• The composition of the board of directors or the executive management
• The signing authority of individuals
• The shares in the company
• The articles of incorporation or the partnership agreement

Partnerships and sole proprietorships

For partnerships or sole proprietorships, you must pay particular attention to:

• The personal liability of the new owner
• Existing contracts with business partners
• Tax transitions

Succession Models

Choose the model that suits you and your business. There are three common approaches:

Intra-family succession:

• The business stays in the family.
• Communicate openly with one another early on not just about numbers, roles, and responsibilities, but also about wishes, expectations, and visions for the future.
• Be aware of the tax implications, such as estate and gift taxes.
• Transfer to employees

Employees take over the business (internal succession)

• This model offers stability: The team knows the business and takes joint responsibility for its future.
• Clarify early on whether the takeover is financially feasible.

Sale to external individuals or companies

• The company is sold to third parties.
• New ownership often brings new perspectives, but can also lead to a cultural shift.
• Select the successor carefully and communicate transparently with employees, customers, and business partners.

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