[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"advice-en-converting-jdg-to-sp-z-o-o":3},{"slug":4,"title":5,"excerpt":6,"body":7,"datePublished":8,"dateModified":8},"converting-jdg-to-sp-z-o-o","Converting a JDG into a sp. z o.o. — procedure and costs in 2026","Converting a sole proprietorship (JDG) into a sp. z o.o. in 2026: stages, conversion plan, auditor, notarial deed, KRS entry, taxes and real costs.","\u003Cp>Converting a sole proprietorship (JDG) into a capital entity — a limited liability company (sp. z o.o.) — is a formal transfer of the entire business — assets, contracts, permits and employees — to a new entity with legal personality. Unlike winding up and setting up a new company, conversion preserves the legal, tax and economic continuity of the business. For an entrepreneur running a growing JDG this is usually the moment when they want to limit personal liability, separate private assets from business assets and tidy up tax matters (Estonian CIT, a lower health contribution for the shareholder). The procedure is formalised, takes about 3–5 months and requires cooperation with a statutory auditor and a notary. Below we describe its course in accordance with the state of the law as of 2026.\u003C\u002Fp>\u003Ch2>Legal basis and the principle of continuity\u003C\u002Fh2>\u003Cp>The procedure is regulated in Title IV, Division III of the Commercial Companies Code (Article 551 et seq.), in particular the provisions on converting an entrepreneur into a capital company (Articles 584¹–584¹³). On the day of entry in the KRS (National Court Register) the converted company takes over the rights and obligations of the JDG — without the need to assign contracts. Permits, concessions and reliefs obtained by the entrepreneur remain in force, unless a statute or administrative decision clearly provides otherwise. The company's NIP number is new, but tax succession covers most settlements — income taxes from the moment of conversion are calculated for the company.\u003C\u002Fp>\u003Ch2>Stages of the procedure — step by step\u003C\u002Fh2>\u003Col>\u003Cli>\u003Cstrong>Conversion plan.\u003C\u002Fstrong> The entrepreneur draws up the plan in the form of a notarial deed. It contains the balance-sheet value of the JDG's assets on a specific date (no earlier than one month before the plan is drawn up), together with the draft articles of association of the new company and the declaration of conversion.\u003C\u002Fli>\u003Cli>\u003Cstrong>Annexes to the plan.\u003C\u002Fstrong> The JDG's financial statements, the draft declaration, the valuation of asset components and an opinion on the balance-sheet value.\u003C\u002Fli>\u003Cli>\u003Cstrong>Statutory auditor.\u003C\u002Fstrong> The registry court appoints an auditor who examines the plan for correctness and reliability. The auditor's opinion should be issued within the deadline set by the court — usually up to two months from the receipt of the application.\u003C\u002Fli>\u003Cli>\u003Cstrong>Declaration of conversion.\u003C\u002Fstrong> The entrepreneur submits it in the form of a notarial deed — it contains the type of company, the amount of share capital, the names of management board members and other elements of the articles of association.\u003C\u002Fli>\u003Cli>\u003Cstrong>Articles of association of the converted company.\u003C\u002Fstrong> Also in the form of a notarial deed. The minimum share capital of a sp. z o.o. is PLN 5,000, but it is most often paid up with the components of the business (an in-kind contribution).\u003C\u002Fli>\u003Cli>\u003Cstrong>KRS application.\u003C\u002Fstrong> Filed through the Court Registers Portal together with the full set of annexes. The day of entry in the register is the day of conversion — from that date the JDG ceases to exist and the company operates fully.\u003C\u002Fli>\u003Cli>\u003Cstrong>Follow-up steps.\u003C\u002Fstrong> Striking the JDG off CEIDG, the NIP-8 notification to the tax office, updates with ZUS, the notification of beneficial owners to the CRBR, VAT-R, updates in industry registers (BDO, URE, UOKiK — if applicable).\u003C\u002Fli>\u003C\u002Fol>\u003Ch2>Documents and required annexes\u003C\u002Fh2>\u003Cul>\u003Cli>the conversion plan (notarial deed) together with the draft articles of association and the declaration of conversion;\u003C\u002Fli>\u003Cli>a valuation of asset components as at the balance-sheet date of the conversion;\u003C\u002Fli>\u003Cli>the JDG's financial statements for the period up to that date (if the JDG kept accounting books — full statements; under the KPiR (tax book of revenue and expenditure) — a balance sheet prepared specifically for the conversion);\u003C\u002Fli>\u003Cli>the statutory auditor's opinion;\u003C\u002Fli>\u003Cli>the declaration of conversion and the articles of association in the form of notarial deeds;\u003C\u002Fli>\u003Cli>statements by management board members consenting to perform the function and giving service addresses;\u003C\u002Fli>\u003Cli>the list of shareholders and the amount of share capital;\u003C\u002Fli>\u003Cli>proof of payment of the court fee and the fee for announcement in the Court and Commercial Gazette (MSiG).\u003C\u002Fli>\u003C\u002Ful>\u003Ch2>Costs — what you actually need to pay\u003C\u002Fh2>\u003Cp>Costs break down into several items. Specific rates are worth confirming with the notary before starting — they depend on the value of assets:\u003C\u002Fp>\u003Cul>\u003Cli>\u003Cstrong>Notarial fee\u003C\u002Fstrong> for the plan, the declaration and the articles of association — set progressively on the value of assets, usually PLN 1,500–5,000 gross for medium-sized firms, several times more for larger ones.\u003C\u002Fli>\u003Cli>\u003Cstrong>Statutory auditor's opinion\u003C\u002Fstrong> — market cost PLN 3,000–8,000 net, depending on complexity.\u003C\u002Fli>\u003Cli>\u003Cstrong>Court fee\u003C\u002Fstrong> for the KRS entry — PLN 500 (standard proceedings); with no separate fee for the MSiG announcement (the PLN 100 fee was abolished on 29 November 2025).\u003C\u002Fli>\u003Cli>\u003Cstrong>Notarial signature fees\u003C\u002Fstrong> — several items at PLN 20–60.\u003C\u002Fli>\u003Cli>\u003Cstrong>Legal and advisory services\u003C\u002Fstrong> — cost depends on the scope; typically PLN 5,000–15,000 net for the full service.\u003C\u002Fli>\u003Cli>\u003Cstrong>Updates in KSeF, VAT-R, CRBR, BDO\u003C\u002Fstrong> — no fees, but your own work or an advisor's cost.\u003C\u002Fli>\u003C\u002Ful>\u003Cp>The total starting budget for a typical medium-sized firm is PLN 15,000–30,000. For a very small JDG with a simple balance sheet it can go down to about PLN 10,000; for firms with real estate, inventories and many contracts the amount grows.\u003C\u002Fp>\u003Ch2>How long it takes\u003C\u002Fh2>\u003Cp>A realistic schedule:\u003C\u002Fp>\u003Cul>\u003Cli>preparation of the plan and accounting documentation — 2–4 weeks;\u003C\u002Fli>\u003Cli>application to the court for an auditor and the issue of the opinion — 6–10 weeks;\u003C\u002Fli>\u003Cli>declaration and articles of association at the notary — 1 day;\u003C\u002Fli>\u003Cli>KRS entry — 2–6 weeks (the PRS is faster than the paper mode);\u003C\u002Fli>\u003Cli>follow-up steps — 2–4 weeks.\u003C\u002Fli>\u003C\u002Ful>\u003Cp>In total about 3–5 months, counting from the first consultation. Haste does not pay off — the auditor flags imprecise valuations and poorly drafted balance sheets, which can lengthen the whole process by another 2 months.\u003C\u002Fp>\u003Ch2>Tax consequences\u003C\u002Fh2>\u003Cp>From a tax perspective the conversion is neutral. General succession covers:\u003C\u002Fp>\u003Cul>\u003Cli>VAT — the company continues the VAT number, taxpayer status and the right to deduct; in practice it gets a new NIP, so a VAT-R filing and informing counterparties are required;\u003C\u002Fli>\u003Cli>CIT — from the day of conversion profits are taxed with CIT (9% for a small taxpayer up to EUR 2 million of revenue, 19% above), or with Estonian CIT, which defers taxation until the dividend is paid;\u003C\u002Fli>\u003Cli>the entrepreneur's PIT — the JDG records come to an end; income from work in the company, a contract or dividends is settled separately;\u003C\u002Fli>\u003Cli>fixed assets — the company continues depreciation from the balance-sheet value (no \"double\" write-off).\u003C\u002Fli>\u003C\u002Ful>\u003Cp>For people who have been paying the flat tax (podatek liniowy) or ryczałt (lump-sum tax on recorded revenue) it is worth recalculating the profitability — at low margins a sp. z o.o. may mean higher burdens (double taxation of profit and dividends), unless Estonian CIT is used.\u003C\u002Fp>\u003Ch2>The most common causes of problems and rejections\u003C\u002Fh2>\u003Cul>\u003Cli>An incorrect balance-sheet date in the conversion plan (older than one month from the preparation of the plan).\u003C\u002Fli>\u003Cli>A valuation inconsistent with the auditor's opinion — the auditor raises comments that require the plan to be changed.\u003C\u002Fli>\u003Cli>Missing the NIP-8, VAT-R or CRBR filings after the entry — this risks penalties and a block in KSeF.\u003C\u002Fli>\u003Cli>Incorrect classification of the in-kind contribution — missing documentation showing that the entire set of components constitutes an enterprise within the meaning of Article 55¹ of the Civil Code.\u003C\u002Fli>\u003Cli>Failure to strike the JDG off CEIDG on time — formally it expires on the day the company is entered, but a missing notification leaves a mess in the register.\u003C\u002Fli>\u003C\u002Ful>\u003Ch2>Can it be done online\u003C\u002Fh2>\u003Cp>The plan, the declaration and the articles of association have to be signed at a notary — no exceptions. The application to the registry court is filed electronically through the Court Registers Portal, signed with a trusted profile or a qualified signature. The S24 mode, available for \"new\" sp. z o.o. companies, does not apply to conversion — the regulations require the form of a notarial deed.\u003C\u002Fp>\u003Ch2>How Good Balance helps\u003C\u002Fh2>\u003Cp>As part of \u003Ca href=\"\u002Fen\u002Fservices\u002Flegal\u002Fcompany-changes\">handling changes in your company\u003C\u002Fa>, the Good Balance team carries out the JDG-to-sp.-z-o.o. conversion end-to-end: from the profitability analysis and choice of timing, through drafting the plan with the statutory auditor, coordinating the notary and the KRS application, to the follow-up steps with ZUS, the tax office, CRBR and KSeF. If there are doubts about the legal form, we also advise on alternatives within \u003Ca href=\"\u002Fen\u002Fservices\u002Flegal\u002Fcompany-registration\">registering a new company\u003C\u002Fa> — sometimes setting up a fresh company and gradually winding down the JDG is faster and cheaper than the classic conversion.\u003C\u002Fp>","2026-10-09"]