Privileged status of LLCs upon formation applies to insolvency

Insolvenz und Sanierung

ILO Newsletter 3. Oktober 2014, Dr. Alexander Isola

In order to facilitate the formation of LLCs, the Tax Amendment Act 2014 introduced a formation privilege in the Limited Liability Companies Act, which reduces shareholders´ risk capital from €35,000 to €10,000 while the privilege applies. This reduction of shareholders´ economic risk also applies in insolvency cases. As a result, shareholders need not pay more where insolvency proceedings are opened within the 10-year period.


Dr. Alexander Isola

M.C.J. (NYU) Partner