Changing the company form from private trader to a limited company

When the company's operations grow or the operations otherwise change, it often becomes relevant to change the company form from a private trader to a limited company. In practice, a change of company form is practically always a new limited company established.
 

If the company's operations continue in exactly the same way and the company name has transferable assets or liabilities in its name, the change of company form must be carried out seamlessly. It is recommended to make the application using paper forms, where you are asked to process the termination of the business name and the establishment of a limited company at the same time. Assets that can be transferred can be, for example, vehicles.

If, during registration in the UKKO service, you indicate that you want to change your company form, we will send you instructions for making the change by email within a few days.
You must complete the required forms for the change of company form yourself and provide the necessary statements related to the change. These documents must be submitted by you for official processing through the PRH online form. 

Please note that there is a backlog in processing times at PRH and paper forms currently have a processing time of up to 2–3 months, which should be taken into account when planning a change of company form.

If the change of company form is urgent, and the business name has no transferable assets or liabilities, a limited company can also be established by electronic notification in the YTJ service. After the establishment of the limited company, it is possible to terminate the business name. We are also happy to help with start-up notifications made through YTJ.

Matters to be taken into account when changing the company form:

• When the company form changes, the business ID always changes
• When the company form changes, you must register the limited company to be established 100% in your own name
• When establishing a limited company, you need at least one deputy member on the company's board
• The sole trader’s net assets must be positive in order to carry out a change of company form.
• Limited companies need a company account to run their business

• The establishment of a limited company involves a trade register fee of 380 € when the notification is submitted on a paper form.

  It is always good to weigh the possible tax consequences carefully.