We provide comprehensive legal support to business entities in the areas of company formation and changes of legal status. We bring our clients’ business plans to life with years of experience and expertise, guiding them through all the legal procedures necessary to form and adapt their company structure.
The key to forming a new company is to draw up the formation agreement or memorandum of association correctly and to comply with the required legal formalities. We advise our clients on the most appropriate legal form for their business, both in the formation of simple companies and, in particular, in the formation of more complex companies with multiple founders, on the establishment of branches and business units. The decision on the appropriate legal form for the newly formed company is based on an analysis of the business objectives, the foreseeable responsibilities of the founders, a careful consideration of the tax aspects of each form of company and the intended business.
Our services include the drafting of formation instruments, including the memorandum of association, articles of association and other formation instruments and agreements of company members. We provide our clients with a comprehensive service when forming a new company, including taking care of the company’s registration procedures with the competent authorities and ensuring that the formation process is carried out efficiently and in accordance with the law.
Stages of company formation:
Particular emphasis is placed on agreements of company members at the time of formation, or even during the lifetime of the company, to reconcile the interests of all the company members and to ensure the better functioning of the company. Such an agreement between the company members usually covers various issues relating to the management of the company, profit-sharing, liability, voting rights and other aspects of the company members’ participation and performance. The point is that such an agreement is a private document and is not made public, unlike the memorandum of association, which is available to everyone. Agreements of company members are internal agreements based on trust and cooperation between company members that help to create a stable and successful business environment for the company.
Changes of legal status:
Changes of legal status allow for adjustments to the structure and organisation of a company, such as mergers, divisions or conversions into another legal form. We guide our clients through complex legal procedures, ensuring legal certainty and compliance with the law.
Forms of changes of legal status:
A very common form of a change in the legal status is the conversion of a sole trader (s.p.) into a limited liability company (d.o.o.). It is a form of a change in the legal status in which a sole trader, which has in the past been liable for the obligations of its business with its entire assets, is converted into a legal entity, where liability is limited to the capital invested. The purpose of converting a sole trader into a limited liability company can be multifaceted and depends on the specific objectives and circumstances of the business owner. Some of the key reasons for conversion are:
Experience has taught us that the change in the legal status is often a multi-faceted and complex legal operation, in which the smooth and successful implementation of the process requires the involvement of experts from other relevant fields, most often auditors and chartered surveyors.