New Rules for Corporate Transformations

April 23, 2019

A newly adopted law regulates a series of corporate law issues of transformations (merger, splits and changes in legal forms) in which all corporate forms can be involved in any capacity (SA, LtD, PCC, Partnerships etc., but also, joint ventures, European companies and European cooperative societies), while it is now clear that a transformation can involve companies of different forms.

In the corporate transformation that takes place in the form of the split, the partial split, as well as the sector split, are now included.

Consequently, the conditions, the process of realization and the results of the transformations that take place, inter alia, in the forms of spin-off, partial splitting and branch transformation into a subsidiary, is now regulated by company law instead of the tax legislation.

In addition, it is stipulated that the provisions of Laws 1297/1972, 2166/1993, 4172/2013 and other laws, in particular of tax or developmental content, shall remain in force in respect of their tax arrangements and the advantages or incentives provided.

For the rest, the transformations referred to in those regulations are governed by the provisions of that law, in particular as regards the permissible, the conditions, the process of implementation and the results thereof.