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closing down & assets


homebound
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Sadly we have decided to return to the UK adn wrap up our business here that is registered with the Chambre de Commerce. We have a utilitaire, a trailer and other bits in the name of the entreprise so I wondered how we would get on extracting them from the business as cheaply as possible from a cost and tax perspective (the business owes us a lot of money according to our accountant).
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Then surely this is best answered by your accountant? If the business does indeed owe you lots of money then I cant see why you want to remove tha assets at low book value unless you are also sitting on a pot of cash.

That said I have done what you propose on closing my various businesses over the years in the UK, if you dont rip the ar5e out of it then you should have no problems, if you do want to go for the max then you will have to be creative.

First find a friend to buy these assets from your business (you may have to lend him the money to do so) and who will be willing to attest that they were in very poor/worthless condition, he in turn will sell them on to a new buyer, if we are talking vehicles and trailers with a carte grise then there is a significant cost attached to each one of these transactions which may render your plans fruitless.

 

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JR

Thanks for taking the time to reply. I am not sure the costs of certain things make your suggestion possible, as you say. I want everything to be above board and legal - not that what you are suggesting is illegal, just using the rules in place in a creative way.

I should have said about asking the accountant as I thought this might be suggested so sorry about that. The reason why we have not is that we don't want to tell him yet and want to have a better understanding of processes and options before talking to him. We also have ongoing obligations to clients who need protecting as we have been grateful for their support, so there is work to do there, again before pushing the button.

I wondered if taking assets in lieu of money owed would be the route but don't know what would stop us doing that, if anything can stop that.
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Doesn't it depend on the structure of the enterprise? If you are an EI or EURL, then the assets belong to you (regardless of the name on the paperwork) as do the debts, if an SARL then the goods belong to the SARL but are available to be disposed of as the manager(s) of the business (you, I presume) decide.

The thing to watch out for is being accused of disposing of assets to the detriment of your creditors (even if that is you). If you can close the company down cleanly (without debts, other than you), then I see no reason why you can't just give the assets to yourself. If there are other creditors, then they must be considered in priority order (and I doubt if your loan to the business is a higher priority than RSI, for example).

Make sense? No? Take professional advice! Take it anyway....

Slight afterthought - you can't give the stuff away if the genuine sale value of the stuff would increase the tax liability of the business - as this liability would have a higher priority than virtually all the other creditors(esp. you!)

Seel profeessional advice!!
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