Conversion of a individual business into a Simple Stock Company

admin on February 9, 2022

Conversion of a individual business into a Simple Stock Company

Transformation of a individual business into a Simple Joint Stock Company is in many cases an expedient step, allowing to obtain many benefits. This entry will describe the whole procedure that a willing entrepreneur has to go through. In order to optimise the form of the company’s activity, the following steps should be followed:

Analysis of potential benefits

The first step in the procedure of converting a sole proprietorship to a Simple Shareholding Company is to analyse whether a PSA is the right form of business to maximise the benefits while keeping the formal requirements as simple as possible. Once a decision has been made, a conversion plan should be prepared.

Conversion plan

A transformation plan is a document in which the value of an individual’s business assets must be presented and a statement of intent to transform the business into a commercial company must be made. The transformation plan is drawn up in the form of a notarial deed. Any draft documents relevant to the procedure for converting an entrepreneur into a company must also be attached to the document so drawn up.

Submission of a statement The next step of the transformation procedure is to file a declaration of transformation of the individual business into a Simple Joint Stock Company. After filing the declaration, the members of the transformed company’s bodies must be appointed. In the case of a Simple Joint Stock Company, it will be necessary to appoint the management of the company or the Board of Directors as the key body.

Declaration of the Simple Joint Stock Company

Once all the above-mentioned actions have been completed, it is possible to report the new Simple Joint Stock Company to the Register of Entrepreneurs of the National Court Register, as well as to delete the data from CEiDG. The Registry Court enters the newly formed/reformed Simple Joint Stock Company into the KRS register. This action is announced in Monitor Sądowy i Gospodarczy.

Professional support

The process of transformation of a individual business into a Simple Shareholding Company requires meeting a number of formal requirements, as well as continuous involvement of the entrepreneur and relevant specialists – lawyers and accountants. The transformation offers many advantages, which guarantee a higher standard of legal protection, as well as a lower risk associated with running a business. The Law Firm of Piotr Wierzbicki offers professional legal support, allowing a smooth transition of the process of transformation of an entrepreneur running a sole proprietorship into a Simple Shareholding Company.

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