The Change of Business Form and Ending the Business Activities

A sole trader cannot change his/her business form directly into corporate form. The company must first be registered as new, separate company into Trade Register, while also receiving a new Business ID. At this stage, it is good to note that the company cannot be registered by the same business name, unless the private trader makes a termination notice or changes his/her name. Fiscally, however, the company's activity is deemed to continue operating without interruption, despite the company’s deformation, if the assets and liabilities are being transferred to set up company at book values.

In order to terminate business activities, a termination notice, which is free of charge must be filed to the trade register. For the termination to be registered, all possible business mortgages must be amortized.