Accounting and Bookkeeping for SMEs

Converting a Sole Trader into a Limited Company by Transfer of Business

A consultant transferred her whole business, including property, from a sole proprietorship to a new s.r.o. We sequenced the registrations so the company took over VAT status without a gap.

Client
Independent consultant · transition from sole proprietorship to s.r.o.
Practice area
Accounting and Bookkeeping for SMEs
Focus
Restructuring & transactions, VAT & indirect tax
Services
Business restructuring, SME compliance, Tax registration, VAT registration

Initial situation

A consultant who had built her practice as a sole trader decided to continue through a newly founded limited company, transferring the entire business — including a property — to the new entity. The legal transfer was handled by her lawyer, but the tax and administrative steps were unclear, and an error in sequencing could have left her VAT-registered as an individual with no activity, or the new company trading without registration.

Our solution

We prepared the income tax and VAT registration of the new company on the basis of the transfer of business, so that it inherited the VAT status without a gap, and set out the exact supporting documents the tax office would require: the commercial register extract and a certified copy of the transfer agreement. We mapped the parallel steps with other authorities — filing the property transfer with the cadastre, cancelling the trade licence, and notifying the tax office once the licence was withdrawn so the individual's registrations could be closed. When the company name and the founder's academic title were recorded incorrectly, we reissued the forms so every filing matched the register.

Result

The consultant moved her business into the company within a few weeks with continuous VAT registration, no period of double registration and no penalties. New engagement and power-of-attorney documents were put in place for the company, and her bookkeeping, tax returns and payroll have been handled under one roof since. This kind of transition is routine for the adviser but a one-off for the entrepreneur, which is exactly where guidance pays for itself.

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