What entities can transform themselves into a commercial company?
How can a company transform?
If you own any type of commercial company, you may transform it both into a partnership (i.e. registered partnership, professional partnership, limited partnership, limited joint-stock partnership) and into a capital company (limited liability company and joint-stock company). The only thing excluded is the possibility to transform companies in liquidation, which have started to distribute their assets, as well as companies in bankruptcy.
In addition to the above, it is also permissible to transform a civil partnership into any of the above-mentioned companies, with the exception of a registered partnership.
The enumeration above means that you are hardly limited in any way by your previous choices regarding the legal form of your business. In the event that the conditions under which you operate have changed or you have changed your business strategy, you have substantial choice as to which legal form of company will help you achieve your goals.
Transforming a sole proprietorship
Your options as to the direction of the transformation are more limited if you are a sole trader. In this situation, the Code of Commercial Companies only allows transformation into a single-member limited liability company or a joint stock company. This does not mean, however, that when conducting business on the basis of an entry in CEIDG (Central Registration And Information On Business) you are completely deprived of the possibility of transforming into another company.
Thanks to the long-standing experience of PragmatIQ law firm advisors, we will help you choose the best legal form for your business, one that will suit your needs and the conditions in which you operate. If you want to learn about pragmatic and verified proposals for transformations – feel free to contact us.