Timely transfer of a business to descendants upon the entrepreneur’s retirement enables an orderly handover of operations and the exercise of rights under the pension insurance system.
The objective of the arrangement for the entrepreneur is a safe, organised, and predictable transition into retirement. For the descendants, the key considerations at this point are tax-neutral treatment of the transfer and, where necessary, a change of the company’s legal form into a more appropriate organisational structure (e.g. from a sole proprietorship to a limited liability company). This ensures business continuity and protects the entrepreneur’s status.
