Can a company merger involve businesses in different countries?

Nina L. Kaufman, Esq.

Nina L. Kaufman, Esq.

An award-winning small business attorney in New York City, Nina is a sought-after professional speaker and Entrepreneur Magazine online contributor. She is the go-to counsel for knowledge economy and creative companies, delivering legal services and educational resources that save them time, money, and aggravation.

Posted on March 4, 2015 in Form a Company

Q.:  I work for a company that has branches in three separate countries, as three separate businesses. Each is owned and operated by the same people. The owners would like to go through a company merger so that these three entities form one company. Is this possible, or do they need to form an entirely separate entity? What must they do to reach their goal?

 

A.:  You can merge three separate businesses from three different countries into one business . . . but whether you would really want to engage in a company merger is another matter.  Depending on the size and industry of the businesses (as well as the country of the business you merge into), you may face a phalanx of local and international regulations and tax issues.

Similarly, selling the assets of the three businesses to the merged company could involve complications.  To get to the heart of the matter, each business should speak to legal and tax counsel about the options, and then perhaps schedule a conference call for all participants to hash out the most cost-effective approach to a company merger.

 

What other law questions do you have about transfer of ownership and closing a business?

 

 

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