Transformation of an Entrepreneur into a Capital Company
On September 28, 2018, the District Court for the capital city of Warsaw in Warsaw registered the transformation of our Client’s business operating hitherto as a sole trader, into a Capital Company (Limited Company) in the mode of art. 551 § 5 of the Code of Commercial Companies. Thus, we successfully completed the procedure, which lasted a total of just over 5 months.
The most common motivations of entrepreneurs to make this kind of transformation include enabling the transfer of a well-established company to its successors (succession), the desire to join a partner to an existing enterprise, or even its sale, which in the situation of running a business under the so-called sole proprietorship would not be possible. In addition, the change in the form of running a business into a capital company is also a natural stage of a properly developing company, opening new opportunities for raising capital, as well as allowing the owner’s personal liability to be separated from the risk of the company.
We wish our Client many successes!