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Brexit: "German" Limited – unlimited ? Liability risks for shareholders in a "German" Limited

Global Tax Update:August 2016/Germany

Shareholders of a UK Limited which is headquartered in Germany face liability risks because of the Brexit. Those concerned should be vigilant as to further developments and take timely steps to safeguard themselves. (Global Tax Update:August 2016/Germany)

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Shareholders of a UK Limited which is headquartered in Germany face liability risks because of the Brexit. Those concerned should be vigilant as to further developments and take timely steps to safeguard themselves.

In the absence of EU influence, German courts predominantly apply the so-called corporate domicile theory. According to this theory, the applicable law is not determined by the jurisdiction of a company’s foundation but based on where its headquarter is located - generally, this will be the place where the board meetings and the supervisory board meetings take place.Under the corporate domicile theory, the legal nature of a foreign company is exclusively determined in accordance with German corporate law if the company’s head office is located in Germany.

 

>> Click for Japanese [Brexitによりドイツに実質的な本店を有するUK法人が無限責任会社とされ得る可能性]

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Deloitte Tohmatsu Tax Co. provides Japanese companies are considering developing business overseas with one-stop international tax services in relation to foreign investment to support their globally appropriate, optimal tax risk/cost management that is aligned with their business operations through Deloitte’s global network.

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