Establishment of a capital company

The law currently in force in Poland provides for many different types of business activity that can be carried out. The Polish economy is dominated by small and medium enterprises, which are often run by one person. Such a solution is beneficial for many reasons. First of all, the cost of running such a company is relatively small and, moreover, in the face of any problems, liquidating such a small company is quite easy. Sometimes, however, it turns out that the activity develops very well and with time it starts to bring more and more profits. It is then worth thinking about a certain change in its form, which will allow us to extend its scope even further and provide ourselves with completely new opportunities.

One of the best solutions in such a situation is to transform your company into a capital company. There is nothing difficult about this, although the whole operation requires, of course, a certain amount of effort and, above all, financial resources from us. Like all other steps of this kind in business, there is also a risk that our decision will be missed and that we ourselves will be left with considerable losses. However, those who fear excessive risk should not enter any business at all - even in a small company there is such a danger.

The first step should therefore be to obtain adequate funds to transform the company into a capital company and to protect against the possible failure of such a decision. As far as formal issues are concerned, you have to start by preparing the company's transformation plan itself. It is not just a matter of planning all the steps - such a plan should be drawn up in the form of a notarial deed and contain a number of details about the activities of our company. Accurate financial statement, evaluation of profits, losses and profitability of the company by an expert.

It is worthwhile to draw up at least a preliminary draft of the company's founding act and the act of the declaration on the transformation of business activity at once. A declaration on the transformation of the business in the form of a notarial deed must be made by the owner of the transformed enterprise himself. It must contain information, above all, on the form in which we transform the company - whether it is a joint-stock company or a limited liability company. Such information must also include the amount of capital contributed by the owner to the new company. The act also specifies the competences that the current owner will have in cooperation with other partners within the new company. The next step in the creation of such a company is the establishment of appropriate bodies within it. According to Polish law, in joint stock companies these functions are performed by the management board and the supervisory board, while in limited liability companies - by the management board itself. Once all these steps have been taken, the partners sign the relevant agreement and the status of the new company.

The last stage is the registration of the new company in the National Court Register. It should be remembered that the entrepreneur who was the owner of the company into which the company was transformed should also be removed from it - legally he is no longer the owner of this activity. Such formalities can be done relatively easily and quickly. However, one should be aware that their achievement has a huge impact on the further professional life of a given entrepreneur and on the subsequent functioning of his or her business. First of all, such a person at that moment ceases to be the owner of the company, and becomes a partner creating a company with other persons, on the basis of predetermined rules. In many respects, such a company operates in the legal reality on a different basis than a one-man company, so you need to spend some time exploring your new rights and obligations.

An interesting and noteworthy issue is also the name of the company. Sometimes a new company has the same name as the company from which it was formed. However, a decision may be taken to amend it. In such a case, however, there is an obligation to add the old name next to the new name - for example, "joint-stock company X (formerly Y)". Both the owner of the former company and the new partners must be aware that all the financial liabilities incurred by the old company are now transferred to the new company, and all the partners are charged with them. However, this is subject to a statute of limitations - the period for which such liability exists is three years.

The transformation of the company and the creation of a company result in many interesting benefits. First of all, there are new opportunities to expand the scope of your business. You can invite to it partners who bring not only invaluable for development capital, but also many new ideas, proposals and technologies. Listing on the exchange ensures constant access to financial resources necessary for the efficient conduct of a given business.

However, it should be remembered that this solution involves certain requirements, including financial ones. To transform the company into a limited liability company, the initial capital of PLN 5,000 is required, while in the case of a joint-stock company - PLN 100,000. If, therefore, we do not have such funds or investors to make an appropriate contribution to the establishment of such a company from the outset, this could be a very difficult task.