For the transformation of a sole proprietorship into a limited liability company (d.o.o.), there is also a feature of universal legal succession, which means that the new or acquiring company enters into all legal relationships related to the transferred business or status transformation of the sole proprietor.
So, there's no need to change contracts related to business collaborations with business partners, employment contracts, and other business transactions since the company takes over all business relationships established by the entrepreneur.
Exceptions do exist, including the need to transfer ownership of vehicles and real estate.
In the case of universal legal succession, or in the case of an entrepreneur's transformation in the ways specified by law, it represents a tax-neutral operation, and no tax is payable on such a transfer.
In the case of already established or future tax benefits, due to universal legal succession, all benefits and burdens are understood to be transferred to the limited liability company.
