When you decide to close a business you should bear in mind that you have formal obligations such as informing all the administrative bodies related to running of a business activity. You also cannot forget that you conclude many long-term contracts, for example with counterparties or employees. In addition, you might entail an agreement concerning the supply of goods or the provision of services to the company. Agreement with counterparties usually contain appropriate rules for their notice period. Whereas, the notice period of an employee depends on the length of his employment. Entrepreneur should submit appropriate notice period early enough so that on the day of liquidation the contracts are no longer in force.
Process of informing the administration takes place partly automatically owing to one-stop-shop (public institutions exchange information without your involvement), however there are some formalities which you have to complete by yourself.
Depending on the reasons for closing business, your obligations may slightly differ.
We have prepared for you information grouped according to the manner in which you finish your business activity.
- closing due to a wish to terminate business activity
- closing due to the sale of the business
- what happens with business activity after the death of an entrepreneur and how to prepare it for transmission to another member of family,
- bankruptcy of entrepreneur due to insolvency
In the event of closing business activity also the form in which it was conducted is important. Depending on it, particular procedural steps may differ. Here you can find out how to deregister a company depending on the form of activity.
Termination of activity involves a series of activities in your tax office and the Social Insurance Institution (ZUS). These can be found in the relevant sections of our portal named ‘Termination of activity':
Important activities connected with termination of business activity are as follows: notification of termination of activities subjected to VAT to the head of tax office and appropriate returns to tax office, obligation to notify the head of tax office on intention to draw up an inventory ( in order to close the tax revenue and expense ledger), obligation to draw up an inventory of assets at the date of winding up business for income tax purposes or carrying out an inventory.
You should also remember that after cessation of activities for a certain period you are subject to controls (e.g. tax and social insurance institution). This means that you are obliged to keep tax and insurance records. If you employed workers in your business, you have additional responsibilities related to the storage of documents.
If you don't know which documents and how long and how you must keep them after completion of the activity, we can help you. Read the publication Storing documents of a dissolved company.
You always need to remember about:
There are activities not directly related to business activity and which should be done in order to close it without problems.
When you close a business activity, verify the following issues:
- Have you deregistered radio or television receivers
If you don't do it, the subscription fee will be charged.
Find out how to deregister company receivers. Read the publication Deregistration of a radio or television receiver in connection with the liquidation of business activity
- Is your business activity removed from registers of regulated activity
Find out how to remove it. Read the publication Removal of an entrepreneur from registers of regulated activity.
- Is your bank account closed. Read the publication Liquidation of the company bank account at the end of business
Remember also to settle any agreements with lessors. You can find more information here.Share Print