Suspension of economic activity is a procedure that can be used by entrepreneurs who have no employees or who only employ employees on maternity, parental or parental leave at a given time. We suggest when it is advisable to suspend your business, what this entails and to what extent it can help you accounting office.
Suspension of economic activity - important aspects
It is worth knowing that:
- A business can be suspended and resumed any number of times.
- The minimum period of suspension is 30 days.
- An entrepreneur registered with the National Court Register can suspend his business activity for a maximum of 24 months. Other entrepreneurs - no time limit.
- A business can be suspended for an indefinite or a fixed period. In the latter case, the suspension request shall indicate immediately the date on which the activity is automatically to be resumed.
- Suspension of a business is a free procedure.
When is it a good idea to suspend a business?
If you run a business that generates profits mainly during certain times of the year (e.g. summer tourism, Christmas tree sales), suspending your business during the off-season can allow you to significantly reduce your operating costs. There are also times when, through sudden life events, you are unable to manage your business effectively. Suspension of activities will allow you to focus on pressing personal matters without having to permanently give up your business. Suspension can also be a strategic move, allowing you to restructure, analyse the effectiveness of your operations or develop a new marketing strategy without the pressure of your current business.
Benefits of business suspension
Advantages of suspending your business is first and foremost:
- reduction in costs: by suspending your business, you can avoid some of the ongoing costs of running your business. No social security contributions are paid during the suspension of your business. ATTENTION: Please note that you are not subject to ZUS insurance during this period!
- maintaining company continuity: suspension allows the company to maintain its formal status, facilitating its rapid resumption whenever possible or needed.
How to suspend a business?
Suspension of economic activity requires notification to the Central Registration and Information on Economic Activity (CEIDG). To be completed CEIDG-1 application form for the registration of information on the suspension of business activity. The application can be made electronically or at the town (municipality) office. The application can be submitted to the office in person or by postal dispatch.
Suspension of business activity and accounting office
No advance payments of income tax are made during the suspension of business activity. You do not have to submit returns for the accounting periods that the suspension period covers. Accounting obligations within the framework of the suspended activity depend on forms of bookkeeping. Detailed information on this can be provided to the entrepreneur by the accounting office. It can also be found on government information websites.
Suspending your business allows you to minimise losses during difficult periods and gives you time to plan your activities without unnecessary burdens. Any decision to suspend should be preceded by a thorough analysis. The formal and legal aspects should be consulted with an accountant's office.. Contact AMG Accounting Office for more information on the possible suspension of activities.
