{"id":248989,"date":"2022-12-06T10:19:00","date_gmt":"2022-12-06T09:19:00","guid":{"rendered":"https:\/\/www.altermes.fr\/contribution-of-shares-to-an-asset-holding-company\/"},"modified":"2023-12-14T15:17:23","modified_gmt":"2023-12-14T14:17:23","slug":"contribution-of-shares-to-an-asset-holding-company","status":"publish","type":"post","link":"https:\/\/www.altermes.fr\/en\/contribution-of-shares-to-an-asset-holding-company\/","title":{"rendered":"Contribution of shares to an asset holding company"},"content":{"rendered":"\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n<p id=\"block-046037f5-174c-4aae-ba3d-26cb1ba80922\">Contributing shares to an asset holding company is a common way of optimizing the sale of assets. It offers a definite reinvestment advantage over owning shares. The operation nevertheless requires the involvement of a contribution auditor to validate the company&#8217;s valuation, and a chartered accountant to support the creation and management of the new company.<\/p>\n\n<p id=\"block-c29403b6-a4aa-4ebf-9f56-6dabcdac7b12\">Matthieu Fournier le Ray provides an update on the nominal operation of a contribution of shares to an asset holding company:<\/p>\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"L&#039;apport de titres dans une holding   \u00e9claircissement!\" width=\"1080\" height=\"608\" src=\"https:\/\/www.youtube.com\/embed\/vPIbi4ISb6U?feature=oembed\"  allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n<h2 class=\"wp-block-heading\" id=\"block-ec15c826-39b5-40c4-9cc1-010587c20699\">Principle<\/h2>\n\n<p id=\"block-621bacac-3c51-464d-8316-0fa80638f88f\">Technically, at a given point in time, you will contribute your shares in kind to a holding company to be created.<\/p>\n\n<p id=\"block-83a13b8a-1048-4949-8c34-a848db8396ed\">To do this, you will need a contribution auditor who will certify the value of the contribution.<\/p>\n\n<p id=\"block-6f9eca42-324c-451b-8c6a-63e2335fe703\">In the short term, this structuring will enable you to :<\/p>\n\n<ul class=\"wp-block-list\" id=\"block-d18c10c5-f288-48c8-ae89-fc9b0cce3e45\">\n<li>enhance the accounting value of your company<\/li>\n\n\n\n<li>compartmentalize certain transactions within the holding company<\/li>\n\n\n\n<li>store dividends in the holding company without significant tax friction<\/li>\n\n\n\n<li>make other investments through the holding company<\/li>\n<\/ul>\n\n<p id=\"block-64086cac-3f39-4b02-82c8-a97d710efcbd\">In the long term, this will give you a major tax advantage, since it will freeze capital gains for income tax purposes and optimize reinvestment opportunities!<\/p>\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n<h2 class=\"wp-block-heading\" id=\"block-04ed8938-ac96-4f93-9788-8e29f9d14108\">A concrete example<\/h2>\n\n<h3 class=\"wp-block-heading\" id=\"block-1a9fb305-7696-41b1-a1e8-3eb809a8c98f\">Step 1: contribution of shares to the holding company<\/h3>\n\n<ul class=\"wp-block-list\" id=\"block-3799b498-b60d-4a0b-a266-a5d7d71bea08\">\n<li>You own a company A with a share capital of \u20ac1m.<\/li>\n<\/ul>\n\n<ul class=\"wp-block-list\" id=\"block-9e6d6236-0ffb-4992-abc1-06342870a0a9\">\n<li>A few years later, you value it at \u20ac10m. The company&#8217;s shares are therefore worth \u20ac10m.<br\/><\/li>\n\n\n\n<li>This valuation must be certified by a contribution auditor. This will enable you to contribute these shares worth \u20ac10m to a holding company B, whose shares will be carried on the balance sheet as assets for \u20ac10m in return for capital of the same amount.<br\/><\/li>\n\n\n\n<li>At this stage, the capital gain is tax deferred, so nothing happens for tax purposes with regard to this contribution of shares. You only need to enter your tax deferral on your income tax return.<\/li>\n<\/ul>\n\n<p id=\"block-f6af336f-32ae-410a-951f-9cf92cc6b8f3\">\ufeff<\/p>\n\n<figure class=\"wp-block-image aligncenter size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.altermes.fr\/wp-content\/uploads\/2023\/07\/Apport-de-titres-etape-1-1024x451.png\" alt=\"Contribution of shares stage 1\" class=\"wp-image-247559\" width=\"823\" height=\"362\"\/><\/figure>\n<h3 class=\"wp-block-heading\" id=\"block-2090023c-c1ea-4513-a772-e4c24c836267\">Step 2: Sale of company A in 2026<\/h3>\n\n<ul class=\"wp-block-list\" id=\"block-96bde323-9247-4283-9e6e-f90610e946ef\">\n<li>In 2026, you sell your company A to a buyer for \u20ac20m.<br\/><\/li>\n\n\n\n<li>Your holding company will therefore have \u20ac20m in cash and will then make a capital gain of \u20ac10m, corresponding to the difference between the value of the \u20ac10m shares at the time of the contribution and the \u20ac20m sale price.<br\/><\/li>\n\n\n\n<li>This capital gain will be taxed as a long-term capital gain at 12% * the corporate income tax rate, giving you a corporate income tax charge of \u20ac300,000 at a corporate income tax rate of 25% (corporate income tax =&gt; \u20ac10m *25% * 12% ).<br\/><\/li>\n\n\n\n<li>This gives you \u20ac19.7m in cash available for reinvestment in this holding company.<br\/><\/li>\n\n\n\n<li>As regards the \u20ac9m tax deferral referred to above, it remains in force as long as you do not sell the shares in the holding company.<br\/><\/li>\n\n\n\n<li>If you hadn&#8217;t done this little structuring. The entire capital gain of \u20ac19m would have been subject to income tax, i.e. the flat-tax of 30%, giving a tax charge of \u20ac5.7m and a reinvestment capacity for you of \u20ac14.3m.<br\/><\/li>\n\n\n\n<li>We have a substantial difference linked to this structuring<\/li>\n<\/ul>\n\n<p id=\"block-6aaad6a1-7e88-42b1-b209-16043caae5df\">\ufeff<\/p>\n\n<figure class=\"wp-block-image aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"441\" src=\"https:\/\/www.altermes.fr\/wp-content\/uploads\/2023\/07\/Apport-de-titres-etape-2-1-1024x441.png\" alt=\"Securities contribution stage 2\" class=\"wp-image-247563\" srcset=\"https:\/\/www.altermes.fr\/wp-content\/uploads\/2023\/07\/Apport-de-titres-etape-2-1-980x423.png 980w, https:\/\/www.altermes.fr\/wp-content\/uploads\/2023\/07\/Apport-de-titres-etape-2-1-480x207.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1024px, 100vw\" \/><\/figure>\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n<h2 class=\"wp-block-heading\" id=\"block-8d4bc6d2-85b3-4ef9-af9c-b71e0052fbe2\">Conclusion<\/h2>\n\n<p id=\"block-665e944a-4f86-4a87-8218-6dcff6730eb0\">As you will have understood, this operation is virtuous for the entrepreneur, who can reinvest the capital gain available in his holding company following the resale of his shares.<\/p>\n\n<p id=\"block-3509e1f0-5454-491f-adfc-e90d9ef041a4\">In addition to the legal aspects, we recommend that you call on the services of professional accountants (commissaire aux apports, chartered accountants and\/or tax lawyers) to help you carry out this operation.<\/p>\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n<p id=\"block-fa4c9511-c5d9-4941-8a75-88779c9cd4ea\">\ud83d\udc46 If you have a question, a project or would like to find out more about how contributing shares to an asset holding company works,<a href=\"https:\/\/www.altermes.fr\/en\/contact\/\"> contact our teams of experts<\/a>!<\/p>\n\n<p>  \ud83d\udd0eIf you&#8217;d like to find out more about <a href=\"https:\/\/www.altermes.fr\/en\/wealth-management\/\">our wealth management expertise<\/a>,  <\/p>\n\n<p id=\"block-04bb1744-2074-4d7e-af09-104b17701583\">\ud83d\udc46 Need another source? We&#8217;re sharing an <a href=\"https:\/\/www.lesechos.fr\/patrimoine\/impots\/transmission-dentreprise-le-double-avantage-de-lapport-cession-1151071\" rel=\"nofollow noopener\" target=\"_blank\">article from our friends at Les Echos<\/a> on the benefits of the system!<\/p>\n\n<figure class=\"wp-block-image aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/media.giphy.com\/media\/E1UU9Bercy12KoZMij\/giphy.gif\" alt=\"\"><\/figure>","protected":false},"excerpt":{"rendered":"<p>Contributing shares to an asset holding company is a common way of optimizing the sale of assets.<\/p>\n","protected":false},"author":5,"featured_media":22352,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[55,72,129],"tags":[],"class_list":["post-248989","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-engineering-and-asset-management-consulting","category-audit-and-statutory-audit","category-financial-assessment-and-expertise"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.altermes.fr\/en\/wp-json\/wp\/v2\/posts\/248989","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.altermes.fr\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.altermes.fr\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.altermes.fr\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.altermes.fr\/en\/wp-json\/wp\/v2\/comments?post=248989"}],"version-history":[{"count":1,"href":"https:\/\/www.altermes.fr\/en\/wp-json\/wp\/v2\/posts\/248989\/revisions"}],"predecessor-version":[{"id":248990,"href":"https:\/\/www.altermes.fr\/en\/wp-json\/wp\/v2\/posts\/248989\/revisions\/248990"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.altermes.fr\/en\/wp-json\/wp\/v2\/media\/22352"}],"wp:attachment":[{"href":"https:\/\/www.altermes.fr\/en\/wp-json\/wp\/v2\/media?parent=248989"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.altermes.fr\/en\/wp-json\/wp\/v2\/categories?post=248989"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.altermes.fr\/en\/wp-json\/wp\/v2\/tags?post=248989"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}