diff --git a/openerp/addons/base/res/res_partner.py b/openerp/addons/base/res/res_partner.py
index d3ed58a76dd..b13ef071bc9 100644
--- a/openerp/addons/base/res/res_partner.py
+++ b/openerp/addons/base/res/res_partner.py
@@ -471,8 +471,6 @@ class res_partner(osv.Model, format_address):
             any(partner[f] for f in address_fields) and not any(parent[f] for f in address_fields):
             addr_vals = self._update_fields_values(cr, uid, partner, address_fields, context=context)
             parent.update_address(addr_vals)
-            if not parent.is_company:
-                parent.write({'is_company': True})
 
     def _clean_website(self, website):
         (scheme, netloc, path, params, query, fragment) = urlparse.urlparse(website)
diff --git a/openerp/addons/base/tests/test_base.py b/openerp/addons/base/tests/test_base.py
index 11351a80517..44454f9c3d3 100644
--- a/openerp/addons/base/tests/test_base.py
+++ b/openerp/addons/base/tests/test_base.py
@@ -124,7 +124,6 @@ class test_base(common.TransactionCase):
         self.assertEquals(p1.type, 'contact', 'Default type must be "contact", not the copied parent type')
         ironshield.refresh()
         self.assertEqual(ironshield.street, p1.street, 'Address fields should be copied to company')
-        self.assertTrue(ironshield.is_company, 'Company flag should be turned on after first contact creation')
 
     def test_40_res_partner_address_getc(self):
         """ Test address_get address resolution mechanism: it should first go down through descendants,