Limited liability company equity transfer process and tax issues

Limited Liability Company Equity

transfer process

And tax issues when you no longer want to continue cooperation or business，What should I do if I want to quit? Of course, you have to transfer your equity.，Take the money and leave。Then limited liability company equity

transfer process

What is it like? What are the taxes on equity transfer? Today I will analyze the issues related to equity transfer for you.。

Equity transfer process of limited liability company：The transferor and the transferee sign a letter of intent to transfer - pass the resolution of the shareholders' meeting - sign an equity transfer agreement (contract) - register a change in the company's equity - apply for change registration with the Industry and Commerce Bureau

Things to note

：1、A letter of intent to transfer is equivalent to a draft of an agreement，Content includes：Equity transfer amount，Basic information of the transferor and transferee，Rights and obligations of both parties，Equity transfer price and payment method、Delivery period and method of equity transfer、Equity transfer, change registration, etc. Details of equity transfer，need to be treated with caution。

2、The general meeting of shareholders requires the approval of more than half of all shareholders，If the shareholders do not agree to the transfer, they need to purchase the transferor’s shares.，If you do not want to buy, it will be deemed as your agreement.。In addition, intra-company equity transfers do not require the consent of other shareholders.，Just notify other shareholders。3、There cannot be any major changes between the equity transfer agreement and the letter of intent to transfer (because this may harm the interests of other shareholders)，Otherwise, other shareholders can raise objections，Resulting in the transfer procedure being rejected by the court。

4、When the company’s equity changes，To cancel the capital contribution certificate of the original shareholder (transferor)，and add proof of capital contribution from new shareholders (transferees)，The corresponding company articles of association also need to be modified.。Equity Transfer Tax Issues Stamp Duty、personal income tax、VAT、corporate income tax。But not every situation involves these four taxes.。It depends on who the transferor and the transferee are.。stamp duty：Both the transferor and the transferee need to pay。

Personal income tax rate of 5/10,000：When the transferor is an individual，The transferor needs to pay personal income tax。The transferee does not need to pay，20% corporate income tax rate：When the transferor is an enterprise,，The transferor needs to pay personal income tax。

The transferee does not need to pay，General corporate tax rate 25%，20% for small and micro enterprises，15% value-added tax for high-tech enterprises：VAT is only required to be paid in one case，That is when a company gives up its equity in a listed company，The transferor needs to pay VAT。General taxpayer tax rate is 6%，A must-have industrial and commercial service expert for small-scale companies registered in Shenzhen with a tax rate of 3%

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