Often times, taking over an existing company is a worthwhile alternative to setting up a new business, as one can benefit from the company’s established reputation, production structure and customer network and thus minimize the traditional risks facing start-ups. However, many people do not realize the work and process involved in an acquisition of an EU-based business. And getting legal document translations from and into various foreign languages is just part of this challenging process.
For starters, transferring ownership actually requires more financing than starting a business from scratch. One needs to secure loans, guarantees and contracts with facilities and suppliers – all of which will be conducted in the business’s native language. This means the costs of a foreign language translation of all documentations will have to be factored into the budget.
There are also numerous tax consequences in a business acquisition. For example, the selling business may benefit from tax exemptions on profits from selling a business and various exceptions to inheritance and gift taxes. In order to ensure one’s client is receiving the best tax planning advice, a foreign language translation of the local tax code – done by someone familiar with the local tax code terminology- is highly recommended.