Today's Invest Guide : Conversion of sole proprietorship

to corporation

Two ways to convert to a corporation :

1. investing fixed assets in spot commodities method

2. transfer and acquisition method

Investment in spot commodities method


An assessment of assets is very difficult

because the transaction does not involve cash.

The procedure is complicated and costly

as the assets must be investigated by an authorized appraisal and

assessment institution or court-appointed inspector. 

Transfer and acquisition method


It refers to the comprehensive transfer of to the corporation.

The transfer can be conducted easily once a reasonable settlement price is established

so this method is preferable in practice.

Conversion procedure by business transfer

and acquisition transfer method


Estimate value of net assets of individual business

Determination of capital and incorporation

Conclusion of business transfer and acquisition contract, report of

incorporation and application for business registration

Settlement of accounts of individual business

Report of surtax and cessation of business

Follow-up measures including nominal transfer of real estate