Spin off type division is a form of company split by M & A, which is a company splitting and delivering the shares of the successor company, which is the company that takes over the business divided as a consideration for the split, to a split company It is the format to assign. On the other hand, the form of split type splitting is one of the form of corporate splitting, but this is the form of assigning shares that are consideration for splitting to shareholders of a split company, not split companies. Under the Corporate Law, this split type separation has been abolished and it is now regarded as “split-type split + distribution of surplus.” Separation type division is adopted in such a case as to divide the business department etc as a separate company in the case of wanting to divide what was one company into several companies until then. If the company organization gets bloated, management efficiency may deteriorate. For that reason, it may be more efficient to split the business division as a separate company with independent profitability.

Spin off type division is physical separation

Generally, it is done as a company sale on the form, and even if the company division is done, the company which was divided is subsequently entered into the company group and operated. In some cases, it is not unusual that the settlement also takes the form of a consolidated settlement with the former company. For tax purposes, we consider separating “spin-off type division” into “material separation” and split type division into “human division”. In the case of a split type split, the business year of the split corporation will be continued, but in the spin company type split, the split corporation ‘s business year will be divided because it is necessary to confirm the reserve fund reserve transferred to the successor corporation. In the Corporate Law, the split type split (human split) has been abolished and the split type split became “split type split + distribution of surplus”, which is the same result as the split type division of the former Commercial Code It will be positioned to be. Separate company split divides and succeeds the assets and liabilities of the business to be succeeded to the succeeding company and receives the allocation of shares as its consideration so that it has properties similar to “spot investment” that contributes to the investment of non-monetary assets at the time of issue of new shares.