How to suspend a business?

The possibility of suspending business activities significantly increases the security of entrepreneurs in the event of a possible lack of financial liquidity of the company. Suspension of business activity is an ideal solution for those entrepreneurs whose business is experiencing a temporary crisis, e.g. in the form of a drop in orders or running seasonal activities. Pursuant to the Entrepreneurs' Law Act, the suspension of the company should last at least 30 days. The article explains how to suspend your business.

Who and when can suspend business activity?

An entrepreneur running a sole proprietorship has almost no problems in this matter. In the case of partnerships, civil partnerships and general partnerships, where the taxpayers are the partners and not the partnership, the activity may be suspended only when the other partners also decide to make this decision.

How to suspend a business?

The suspension of business activity can be made in person or by using an attorney in the entrepreneur's registration authority - commune office or city office. It is worth remembering that the application for the declaration of suspension of business activity, and more precisely the CEIDG model and instructions for filling in, can be found on the websites of the relevant offices. We can also send the application by registered mail, but in this situation the signature must be notarized.

Another option for submitting an application for suspension of business activity is electronic sending, but certified with an electronic signature. This option relieves the entrepreneur from a personal visit to the office. An electronic signature is data in electronic form. However, they, along with other data to which they have been attached or with which they are logically related, are used to identify the person signing the electronic signature. You should remember to visit the registering authority in person in order to confirm the submission of the application in writing.

The period of suspension of the company may last for a specified or indefinite period, but not shorter than 30 days. However, in the case of entrepreneurs entered in the National Court Register, it is possible to suspend the performance of business activities for a period from 30 days to 24 months.

Submitting an application for suspension of activity - what next?

With the submission of the application for the suspension of business activity, the entrepreneur is automatically deregistered from ZUS. The Social Insurance Institution deregisters the payer upon receipt of the information sent from the CEIDG system. The consequence of the suspension of business activity is the deregistration of the entrepreneur from ZUS. This means that there is no obligation to pay ZUS contributions. However, please note that:

• after the thirtieth day from the payment of the last health insurance premium, the entrepreneur loses the right to health benefits;
• the period during which activities will be suspended will not be counted against the years of service entitling to a pension.

Expenses during the suspension period

An important issue during the suspension of operations are the costs incurred. Pursuant to the Entrepreneurs' Law Act, during the suspension of operations, the entrepreneur has the right to sell his own fixed assets and equipment, as well as perform all activities necessary to maintain and secure the source of income and to accept receivables. In addition, in the event of the suspension of the activity, the entrepreneur is obliged to pay the liabilities arising before the date of suspension of the activity. It should be remembered that each expense must be incurred in order to earn income, maintain or secure the source of income.

During the suspension of economic activity, the entrepreneur cannot carry out the activity, and thus, obtain current income from it, in addition to the above-mentioned (sale of own fixed assets or equipment).He also cannot perform the same activities that were entered in the register of economic activities on the basis of a specific task or contract of mandate. In the event of non-compliance with the above provisions, the entrepreneur will be obliged to stop the suspension of activities and then pay the overdue social security contributions.

Important! The Act specifies the activities that a given entity is entitled to perform during the suspension period: has the right to perform all activities necessary to maintain or secure the source of income, has the right to accept receivables, is also obliged to settle liabilities arising before the date of suspension of business activity, has the right to sell its own fixed assets and equipment, has the right or obligation to participate in court proceedings, tax and administrative proceedings related to business activity performed before the suspension of business activity, performs all obligations prescribed by law, has the right to earn financial income - also from activities carried out before the suspension of business activities, may be inspected on the terms provided for entrepreneurs engaged in business activity.

Suspension of business activity is an ideal solution for entrepreneurs with temporary financial problems, as well as for people who sell products or provide services of a seasonal nature (e.g. construction services). The biggest advantage of suspending your activity is that you do not have to pay ZUS contributions. Before that, however, it is worth considering this matter carefully, as it may cause undesirable effects in the event of non-compliance with the applicable regulations.