Business contribution: what it is and what it means

A business contribution is the act by which the founder contributes the sole proprietorship or their shares to a newly formed company, often the holding company, receiving shares in the new company in return. It makes it possible to value the business for planning purposes and to facilitate the subsequent transfer of the shares to the heirs. It involves a valuation of the business and specific tax formalities. Typical case: moving from a sole proprietorship to a corporate structure in view of succession.

Distinctive: contributes the sole proprietorship or their shares
Distinctive: receiving shares in the new company in return
Essential: newly formed company
Essential: value the business
Essential: facilitate the subsequent transfer of the shares
Constant: valuation of the business
Constant: specific tax formalities

Glossary

Business contribution

The act by which the founder contributes the sole proprietorship or their shares to a newly formed company, receiving shares in that company in return.