Transition from a trade to an SRO: why take steps in November?
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Published
October 27, 2025
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Why tackle the transition in November?
V December registry courts are often significantly overloaded with a high number of applications and at the same time it is fewer working days. This increases the risk of transitioning into January and calls for supplementation. If you start in November, you will make it administration, registrations also process setup without time pressure.
Company formation and proposed date of registration
A limited liability company is established the date of registration in the ORSR. In the registration proposal you can also indicate proposed date, to which the court is to register the company (e.g. first working day in January). Timely submission increases the likelihood that emergence will be timed to suit your needs.
Accounting and tax issues
The transition brings a flip to double-entry accounting. It is necessary to clearly document and value assets and liabilities, set depreciation and determine initial inventory values. When transferring an activity, consider VAT regime (transfer of an economic entity versus standard taxation). Ensure a smooth follow-up tax registrations and settlement last confessions self-employed person.
Establish a limited liability company more advantageously
Until December 31, 2025, establish an LLC with a discount of 20 % + 1st month of accounting free.
Accounting and tax consequences (why deal with it in advance)
- The sole proprietor kept simple accounting or tax records. Accounting in a limited liability company. is double. The transition requires opening of accounting books, inventory and clear valuation of deposits/sales.
- Assets and liabilities: when depositing a business, a package of items is passed, when selling/renting, you deal with income tax, VAT and possible depreciation.
- Stocks: determination starting value in sro, impacts on costs/revenues.
- VAT: it is necessary to assess whether the transfer meets the conditions for tax-free transfer (going concern transfer) vs. standard taxation; solve the same VAT registration of a limited liability company and the last self-employed person's tax return.
- Employees: transfer of rights and obligations, new applications to SP/ZP, wage adjustments, or agreements on changing employers.
- Bank flows: from the date of registration in the ORSR, change of invoicing to sro, follow variable symbols a pairing payments so as not to confuse the income of the entities.
Most common risks
Late submission in December, incomplete documentation when transferring property and contracts, slow adjustments in the bank and billing systems and income mixing on the sole proprietor's account after the company is established. They are preceded by timely preparation, complete contractual documents a clear internal instructions to "„the day of transition“.