Abstract

This publication analyzes the new regulation in the Commercial Companies Code which allows for the transformation of a single entrepreneurship into a single shareholding company. The new law was introduced under the Act of 25 March 2011. The article attempts to answer the question about the nature of the transformation.

The first part of the paper describes the main rules of the transformation. The author describes its specific features, which were unknown before. The paper points out lots of problems with applying this regulation in practice and tries to deal with them.

The second part of the paper analyzes the legal consequences of the transformation. The author objects to treating it as an example of the continuity of rights and duties. This construct considerably reminds more the principle of succession than continuity. However, the transformation creates a new company, the single entrepreneurship will still exist and because of this we cannot classify it as continuity.

The third part of the article discusses the tax consequences of such transformation. With respect to this aspect the regulation is not clear, which may cause different interpretations.