On July 1, 2011 new provisions will become binding, which will allow transformation of an entrepreneur (an individual conducting business activity) into a one-person limited liability or joint-stock company.
 
In order to make such a transformation an entrepreneur will have to among other things prepare a transformation plan and have it examined by an auditor as appointed by a Registration Court. Moreover, such entrepreneur will have to submit a statement on transformation before a notary public and also (s)he will have to establish a company, which will take over all rights and obligations of the entrepreneur, including permits, licenses, and allowances granted to the entrepreneur.   

The new procedure seems to be rather expensive and time-consuming. For this reason entrepreneurs will have to carefully consider whether it is not more beneficial for them to establish a new company and transfer the hitherto activity to it e.g. in the form of a contribution in-kind or through selling the enterprise.

Contact person: Lech Gniady, lg@pnplaw.pl