Re-registration and freezing of assets may be necessary due to sanctions that are imposed on businesses, states or individuals. In such cases, companies may lose access to certain assets, which may adversely affect the business. Therefore, consideration should be given to re-registering assets and freezing them.
Re-registering assets may include changing the legal form of the company, selling assets, changing the capital structure, etc. This can help avoid sanctions that are imposed on certain types of entities.
Asset freezing may be necessary to limit access to assets that can be used in violation of the sanctions regime. In such a case, the company can suspend its activities or transfer assets to an account that is outside the sanctions area.
An important aspect of asset repositioning and freezing is compliance with legal requirements. Some countries may impose restrictions on the reissuance of assets due to sanctions, so advice should be sought from international law experts.
Business restructuring may also be necessary to comply with sanctions requirements. As part of a restructuring, a company may make a number of changes related to its legal form, capital structure, business plan, etc. The purpose of such restructuring may be to avoid placing the company on the list of sanctioned entities.
In general, re-registering and freezing assets as well as restructuring a business can be a complex and costly process. Therefore, companies facing sanctions should seek help from professionals who can provide the necessary legal, tax, and accounting support.