A Sole Proprietor can transfer her /his business to third party only if conditions stated by the Serbian Company Law and The Law About the Registration Procedure at the Agency for Business Registers. Some of them refer to who can Sole Proprietor transfer his / her business to, and other refer to what steps need to be undertaken so that this procedure can be finished.
When does Sole Proprietor can transfer to third party?
Transfer of Sole Proprietors business is possible in two cases:
- Between spouses;
- From parents to children.
In other cases, the transfer of an entrepreneurial action is not possible, nor is it allowed.
What steps need to be undertaken for this procedure?
To make this transfer possible, it is necessary:
- Make an Agreement on the Allocation of Life Assets;
- Verify the contract with the Notary;
- Submit an application for verification of data in the Business Registers Agency;
- Pay a fee to the Business Registers Agency.
What is important to emphasize is that during the transfer of the Sole Proprietors business, the name change also occurs, so it is necessary to create a new stamp at the end of the procedure. Also, new Sole Proprietor can decide to operate without the stamp. The registration number and Tax Identification Number will not change on this occasion, and the number received when previous Sole Proprietor register will be transferred as well.
An individual who took over the business and became Sole Proprietor is responsible for all previously undertaken commitments of a previous Sole Proprietor action with all her/his property, including the property she/he acquires in connection with the performance of his business.
If you need advice or assistance regarding the transfer of a Sole Proprietors business or you wish to register as Sole Proprietor, we are at your service.