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How should a micro-entrepreneur declare his/her cessation of business?

Verified 19 mars 2021 - Legal and Administrative Information Directorate (Prime Minister)

Are you a micro-entrepreneur and you stop working? You must take several steps.

First, you must complete a declaration of cessation of business and a declaration of turnover.

If you wish to stop your activity, you must first inform the CFE  with which you have declared your start of commercial, craft or liberal activity. This can be done online or by correspondence.

Online (for any activity)

Company Window - Online Walks

Company

This online service is intended for any legal form of company, for registration, modification of activity or information of a company, or for declaring the cessation of activity.

Mapping

Trader registered with the RCS, including an EIRL

Company Write-Off - Individual (P4 CM)

Cerfa n° 11679*05 - Ministry of Economy
Other number : P4 CM

For traders and craftsmen

  Warning : the form must be submitted in 2 copies to the CFE.

RM registered artist, including an EIRL

Company Write-Off - Individual (P4 CM)

Cerfa n° 11679*05 - Ministry of Economy
Other number : P4 CM

For traders and craftsmen

  Warning : the form must be submitted in 2 copies to the CFE.

If you want to temporarily suspend your business, you can report a zero turnover every month or quarter (for up to 24 months).

  Warning : The period of suspension of activity shall be considered as a cessation of activity after 12 consecutive months.

Once you have sent the business termination return, you must file a business transaction return. The business transaction return depends on the tax regime you chose when you filed the business return.

Microcompany speed

You should contact us 45 days following the cessation, at the service of the taxes of the individuals you depend on, of an income tax return n°2042 and the supplementary return n°2042-C-PRO. The amount of the taxable turnover must be indicated by microBIC or the amount of taxable income by microBNC, including that for unrecovered invoices.

The 45 days start from the day:

  • the publication of the sale or transfer in a newspaper entitled to receive legal and judicial announcements in the case of the sale or transfer of a commercial fund,
  • where the acquirer or assignee has effectively taken over the management of the holdings in the case of the sale or assignment of other companies,
  • the final closure of the establishments, in the case of cessation of company.

These reported revenues are subject to the progressive scale of income tax.

Microsocial

You must report revenue collected in a calendar quarter at the latest 1 month after the end of this quarter (either April 30, July 31, October 31 or January 31).

For example, for a micro-entrepreneur activity permanently interrupted on May 15, that is during the 2e calendar quarter, the turnover actually cashed between 1to April and May 15 must be declared before July 31.

Even if the business is discontinued in the calendar year, you are not liable for any outstanding payroll or income tax on your business (beyond the last reported turnover).

In the case of an option for the tax-free social payment, the payment applies to it as for the other preceding quarters.

End of year

You can apply to the company Tax Service (EIS) for a reduced contribution based on your business time.

Termination of business on 31 December

You must pay the full company assessment due for the year of termination.