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Relevant Legal Basis for a Company’s Transfer of Either of These from one Member State to Another
According to Mergers Directive Article 10c a company transferring its registred office from one Member state to another, the company ceases to be registred in that Member state and becomes resident in another Member state. Before transferring registred office from one Member state to another, company must take all the necessary measures to ensure that provisions and reserves are properly constituted and make sure that they are partly or wholly exempt from tax and are not derived from permanent establishments abroad, such provisions or reserves may be carried over, with the same tax exemption, by a permanent establishment of the company which is situated within the territory of the Member State from which the registered office was transferred.
In Conclusion, companys registred office and head office may be the same address. Registred office is the liegal addres third persons can send letters or notifications to the company, but head office is the address of the main seat of the bord of directors. Registrd office can be changed from one member state to another using the provisions set out in the Mergers Directive. If Company moves its registred office from one member state to another, it ceases to reside in the first one. Though there are tax provisions that thencompany must comply with the when moving its registred office.
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