Published on : 14 April 20202 min reading time
When developing a professional project, there are many options to guarantee the improvement of the company’s turnover. The entrepreneur must adapt the legal form of the company to his entrepreneurial strategy and ambition. Note that the change of status is not systematic. Moreover, some legal forms are easily modifiable compared to others.
What can be done when the professional project evolves?
When a project evolves, the entrepreneur can readapt the legal framework of his company by choosing a legal form more appropriate to its evolution. The complementary documents as well as the statutes can be changed. Company managers can also create new affiliated structures. When you want to create a new structure, you can set up new activities. However, company managers can also change the legal form of the company without having to create new structures.
Choosing the right legal status for your company
When an entrepreneur is considering setting up a company, the legal status of the company will have to be carefully chosen. It is recommended to choose a status that corresponds to the company. This provides a legal framework for a manager to manage the company legally. The legal status of a company can be chosen according to the number of people involved in the project. However, the creators of start-ups can start their project with a small structure. They will later be able to change the legal status of the company according to the evolution of the company.
When can the legal status be changed?
Changing a legal status varies depending on the form of the company before the change as well as the legal form you want to set up. When the company in question is a corporation, its transformation is done by choosing another category of company. If it is a sole proprietorship, it will be necessary to transfer the funds, create a new company and close the old company.
The steps to be taken to change legal status depend on the nature of the transaction. For example, it may be a change in legal status from an existing business or a change from a new company.