Suspension and resumption of business activities

Every entrepreneur may decide to temporarily suspend business operations. Entrepreneurs decide to do so motivated by loss of financial liquidity, failure to pay fixed costs, contributions and taxes. Suspension of business activity is beneficial for the entrepreneur, primarily due to financial relief and tax facilities.

The so called Business Constitution that came in force on 30 April 2018 made it possible to suspend business activities for those, who employ others, including those employees who are staying on maternity or parental leave. The suspension of operations may be for an indefinite or specified period, but this period may not be shorter than 30 days. The length of the suspension of business activities is a maximum of 24 months.

Before the suspension of activities, it is suggested to deal properly with matters related to the company: remember to terminate contracts that will not be used during suspension, and explain your business partners the intended action.

Suspension of business requires application to the CEIDG. This can be done in a number of ways:
– personally at the Municipal Office
– by proxy (17 PLN for power of attorney)
– by mail (your signature should be certified by a notary)
– electronically (using a qualified certificate, ePUAP trusted profile)

The application should contain the following:
– name and surname of the entrepreneur, PESEL number (if any) and the date of birth
– REGON identification number of the entrepreneur (if any)
– tax identification number of the entrepreneur (if there is one present)
– additional terms that the entrepreneur includes in the company.

If the application is incorrectly completed by the applicant, the applicant will be asked to amend the incorrect information within 7 days of the call to do so. When the application is submitted online, the CEIDG system will automatically detect and notify the incorrectness thereof. After accepting the correctly filled application the municipal office is obliged to send, within 3 days, data from the application together with the original document to the competent tax office, statistical office and Social Insurance Institution (ZUS) or KRUS.

It is also worth remembering that the suspension requires crossing out yourself and employees from ZUS-provided insurance. During the suspension of activities the entrepreneur has the option of settling fixed costs related to securing the source of income (these are mainly utilities, rent, etc.) Such expenses should be included in the annual tax return.

The period of suspension of business operations should end with their resumption or termination. The procedure for these two is identical as in the case of suspension. The entrepreneur submits an application to the CEIDG for resuming the activity via the Internet, by mail or in person (the application is exempt from fees). From the day indicated in the application form as the day of resumption of activities, the entrepreneur is again subject to insurance on this account and again obliged to pay insurance contributions related thereto.