Closing a businessPrint

Before a business is closed, income tax payers should do a physical stock taking, commonly referred to as inventory. This is a list of all assets and their origin existing on a given day. An inventory should identify all goods, materials, finished goods, deficiencies and other tangible assets related to the conducted business activity. The date of physical stock taking should be exactly the same as the date of termination of the business operation, i.e. submission of an application for termination of business activity (application form EDG-1). After completion of the inventory, the proper liquidation of the business can commence.

If an entrepreneur is no longer liable to pay VAT, he must submit a VAT-Z application to the competent tax office. A completed VAT-Z form should be submitted to the tax office (in person, by registered mail with return receipt or via the e-returns system)

Deletion of an entry from the National Court Register (KRS)

If an enterprise is registered in KRS, in order to terminate business activity a KRS-X2 application for deletion of the entity from KRS has to be submitted. The fee for striking an entry from KRS is PLN 300. An application shall be filed in writing with the district court (commercial court) which has jurisdiction over the company’s seat. The application may be submitted in the registry office of the competent court or sent by post to the court’s address. After deletion of an entity from the register of entrepreneurs, the competent tax office must be notified of its winding up by receiving a copy of a liquidation report. A NIP-2 update form must be filed with the tax office, and if the entity was liable to pay VAT, a VAT-Z form must be submitted as well. There is also an obligation to notify GUS (Central Statistical Office) by applying for deletion of an entity from the REGON register within 14 days of deletion from KRS. It is also necessary to notify one’s bank and close all bank accounts. The entity must also deregister from ZUS (Social Insurance Institution) by means of a ZUS ZWPA form.

A decision on deletion of an enterprise from KRS should be issued without delay. A case which requires explanatory proceedings shall be resolved not later than within one month, and particularly complex cases not later than within two months of the date of initiation of proceedings.

The fee for deletion from KRS is PLN 300.

Deletion of an entry from CEIDG

In order to delete an enterprise from CEIDG it is necessary to complete and submit an EDG-1 application in the relevant municipal or commune administrative office. The application can also be submitted via the Internet or by registered mail. Submission of an application is not subject to a fee. Information about the termination is sent to the tax office, the Social Security Institution and the General Statistical Office (thus there is no need to separately notify these offices of closing the business).

A decision on deletion from the business register should be issued within 14 days of the date of submitting an EDG-1 application. The decision on deletion of an entry from the register of business activity may be collected in person by the applicant, by an authorized representative (authorization does not need to be in the form of a notarial deed) upon presentation of an ID card, or it may be sent by post.