Family business - company inheritance
Running a family business is a very good idea. When it does prosper, the owner thinks about passing it on to his descendants. Can micro and small businesses be inherited? Let's check what the inheritance of a company looks like in the case of sole proprietorship - one of the most common organizational and legal forms in Poland.
Company inheritance - sole proprietorship
A sole proprietorship is the most common form of running a business in Poland. The basic name of the company in this case is the first and last name of the owner. What does company inheritance look like? Formally, the regulations do not allow this activity to change hands.
The inheritance law regulations do not allow the company to be transferred in its entirety, because it is not subject to inheritance:
company name, which is the entrepreneur's name and surname,
NIP (tax identification number),
Inheriting a sole proprietorship when the entrepreneur has left a will
When the deceased leaves a will, he can indicate in it who will receive the inheritance and to what extent. However, in this case, the testator is not 100% sure that the company will actually go into the hands of the person he indicated. If you want to transfer the company to one heir, it is worth using the so-called debt collection record. Then the will must take the form of a notarial deed. On its basis, the enterprise may fall into the hands of one person. It should be remembered that the heir who inherits the company, in fact, inherits only his property. In order for the enterprise to continue to function, the heir must set up his own business.
Inheriting a sole proprietorship when the entrepreneur has not left a will
If the entrepreneur has not left a will, the inheritance of the company takes place in accordance with the provisions of the inheritance law, according to which the inheritance is in the first place to the spouse and children. They inherit equally. The spouse's share of the inheritance may not be less than ¼.
Company inheritance rules
Pursuant to the Act on Inheritance Law, the order of inheritance is as follows:
As you can see, statutory inheritance of a company is quite complicated and in its case you should take into account the division of property.The inheritance proceedings then take quite a long time, which may contribute to the cessation of the company's operation. In addition, it should be remembered that the heirs, in addition to the property, will inherit debts - then the matter becomes even more complicated.
In order to avoid this type of problem, the entrepreneur should consider changing the form from a sole proprietorship to a commercial company.