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Suspending business activityPrint

Suspension of business activity means a temporary break in the operation of a company. Business activity may be suspended for any reason - for example, financial problems or private  plans of the entrepreneur.

Firms that are entered in the National Court Register (KRS) submit applications for the suspension of business activity to the registration court.

Firms registered in the Central Registration and Information on Business (CEIDG) may submit an application for suspension of business on-line at the website of CEIDG. The application form for entry into the CEIDG is also the form form for suspension and resumption of business activity. Such an application may also be submitted to the commune administrative office, either in person or by registered mail.

Note: Only an entrepreneur who does not have employees may suspend business activity. An entrepreneur who does not have employees means an entrepreneur who has not established an employment relationshipwith employees under the meaning of the Labour Code. Thus, this does not apply to companies that establish cooperation based on a contract for a specific task or a contract  of mandate (these are civil law contracts). One who suspends business activity does not cease to be an entrepreneur.

During the period of suspension of business activity, an entrepreneur:

  1. has the right to perform all activities required to retain or secure a source of income;
  2. has the right to accept payments due and has the duty to pay obligations that  arose prior to the date of suspension of business activity;
  3. has the right to dispose of own fixed assets and equipment;
  4. has the right or duty to take part in court proceedings, tax and administrative proceedings connected with business activity conducted prior to suspension;
  5. performs all duties required by the provisions of law;
  6. has the right to generate revenues also from the activity conducted prior to business activity suspension;
  7.  may be subject to inspection in accordance with the principles laid down for entrepreneurs conducting business activity.

When business activity is suspended an entrepreneur does not have to pay advances towards income tax or submit VAT returns. An entrepreneur does not have to pay health insurance contributions, and other (pension and retirement) contributions are voluntary in that period. Despite the suspension of business activity, the entrepreneur must pay the property tax on the property he owns in connection with the conducted business activity.

An entrepreneur may suspend business activity for a period from 30 days to 24 months. If an entrepreneur fails to resume activity prior to the lapse of 24 months, the entry shall be deleted ex officio.

Both the date of suspension and the date of resumption of business activity may not be prior to the date of submission of an application.

Business activity is resumed upon the entrepreneur’s application. If the company is registered with the National Court Register (KRS), the entrepreneur must submit an application to the district court in person, by post or electronically via the National Court Register website.

Business activity may be resumed in the Central Registration and Information on Business (CEIDG) in two ways:

  • an application for resumption of business activity may be submitted electronically by completing the appropriate form on the website of CEIDG,
  • an application may also be submitted in any commune administrative office, which will the forward the submitted application to CEIDG.