Recently, the Federal Tax Authority (FTA) has released an option to change the legal entity for your business.
The change in entity type can be done if there is a change in the business, or if the entity got registered under an incorrect entity type by mistake, or for any other reason (in which case, the entity will be required to provide further details). Therefore, it is now possible to change the entity type—for example, you can change your entity from a sole proprietorship to an LLC/a single person LLC—without having to de-register the sole establishment and then re-register as LLC.
The following documents shall be required to be submitted when requesting for a change in the entity type.
It is to be noted, that it is allowed to change your entity type only once. In addition to it, this option will only work if there is no pending amendment for the taxable person.
This will improve the process of VAT registration amendment and compliance without having the need to de-register and then re-register due to change in legal entity type.
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