Selecting a language will automatically trigger the translation of the page content.

Definitive cessation of business

Verified 20 août 2020 - Legal and Administrative Information Directorate (Prime Minister), Ministry of Finance

The procedure for the cessation of the activity of an undertaking results in its closure and the cessation of its activity. This may be a bankruptcy or a voluntary termination. In all cases, the company must follow several steps: dissolution, liquidation, payment of taxes and social declaration.

Significant financial difficulties may require you to stop the business.

This situation occurs when the business is in one of the following 2 cases:

That's number onemother step in the process of finally ending your activity.

The dissolution of your company means the termination (voluntary or compulsory) of your professional activity. It will result in your company being deleted from the records where you are registered.

To whom and when should I declare my retirement?

Whether you are an individual entrepreneur or a company executive, you must declare your business to be discontinued.

You must make this statement within 30 days after the end of your activity, at your business formalities center (CFE).

Your CFE automatically transmits the information to the different administrations concerned: Urssaf, tax services, commercial court.

Deletion of records

The declaration of cessation of activities shall mean the radiation of your company on the following registers:

  • Statutory records (RCS, RM, special register of EIRL (RSEIRL), Special Commercial Officer Register)
  • Sirene Directory
  • Files of professional affiliates of social organizations
  • Files of active professionals managed by the tax administration
Formal cancelation (termination)

Répondez aux questions successives et les réponses s’afficheront automatiquement

Legal person (commercial or civil society...)

Online

This is done on one of the following telecommuters:

Business Window: single window for business creation

Business Window Service

Mapping

Declaration of Write-off of an enterprise - Legal person (M4)

Cerfa n° 11685*02 - Ministry of Economy
Other number : M4

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

Individual entrepreneur (craftsman, merchant, etc.)

Online

Business Window: single window for business creation

Business Window Service

Mapping

Declaration of cancelation of a business - Individual (P4 CM)

Cerfa n° 11679*04 - Ministry of Economy
Other number : P4 CM

For traders and artisans

Liberal, home seller or other self-employed

Online

Online activity reporting, modification or cancelation for professionals, artist authors and home sellers

Central Social Security Agency (Acoss)

Mapping

Declaration of cessation of activity - natural person (P4 PL)

Cerfa n° 11932*03 - Ministry of Economy
Other number : P4 PL

Who shall I contact

Artist-author

Online

Online activity reporting, modification or cancelation for professionals, artist authors and home sellers

Central Social Security Agency (Acoss)

You must transmit to the House of Artists (MDA) a copy of the statement made on the Urssaf website within 2 months of the cessation of activity.

You must go to your private MDA space, "My Documents" section, "File a document". You must choose the document type "P0/P2/P4 Urssaf" from the drop-down menu.

Online services for artists' activity statements (Maison des artistes - MDA)

Artists' House - Social security for artists

Mapping

You must transmit to the House of Artists (MDA) a copy of the statement made to the Urssaf within 2 months of the cessation of activity.

Who shall I contact
  • Maison des Artistes (MDA)

    The MDA is the contact point for graphic and plastic authors concerning information on their affiliation to the Social Security and for any advice on social action related to their profession.

    By phone

    From Monday to Friday: from 9am to 5pm

    0 806 804 208 (price of a local call)

    By Email

    http://www.secu-artistes-auteurs.fr/formulaire/contact/contact

    By mail

    60 rue du Faubourg Poissonnière

    75484 Paris Cedex 10

Sales Agent

Write-off for a commercial agent

Cerfa n° 14354*03 - Ministry of Economy
Other number : AC4

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

Agricultural operator

Legal person (commercial or civil society...)

Statement of Write-off of a farming business - Legal entity (M4 agricultural)

Cerfa n° 11929*03 - Ministry of Economy
Other number : M4 agricole

Who shall I contact
Physical Person

Declaration of cessation of an agricultural business - natural person (P4 agricultural)

Cerfa n° 11936*03 - Ministry of Economy
Other number : P4 agricole

Who shall I contact

If you did not find a transferor on your farm when you retired, you must complete a Declaration of Intent to Terminate (CAIS).

You must address it to the Chamber of Agriculture 18 months before you retire.

Declaration of Intent to Cease Agricultural Activity (DICAA)

Cerfa n° 14453*02 - Ministry of Agriculture

  Please note : the self-employed tradesman or trader is in the class of sole proprietors and must complete the same business interruption procedures.

The liquidation is the 2from step before your company is permanently gone.

What is it about?

Liquidation is the action of emptying your business of the following:

  • Materials: you must sell the real and personal property of your business.
  • Financial: you must pay and recover your claims.. And you have to pay your debts.
  • Humans: you must lay off your employees.

The objective of the liquidation is to recover assets to pay your company's debts.

  Warning : if your company does not have enough assets to pay its debts, you must pay them personally.

How is the liquidation going?

Judicial liquidation

It is decided by a court. It is required (you cannot refuse it). It is done by a judge.

Simplified judicial liquidation

Simplified court liquidation is performed when your business meets the following criteria:

  • She doesn't include any real estate.
  • It has a turnover of less than or equal to €300,000..
  • She employs only 1 employee.

It is decided by a court. It is required (you cannot refuse it). It is done by a judge.

Professional Recovery

It is reserved for companies that termination of payment and have very littleassets (resources).

It allows you to write off your company's debts.

Your company closes without paying its debts.

Professional recovery allows you to bounce back quickly.

Only individual enterprises may benefit from this procedure. Corporations are excluded.

Amicable settlement

You decide as an entrepreneur to voluntarily cease your business, without financial difficulty..

You yourself (with your potential partners) sell your business assets.

You settle any debts and pay your creditors.

You lay off your employees.

If there are any remaining amounts, you must share them with your potential partners.

This procedure can last for up to 3 years.

You must regularize the payment of taxes on your profits when you stop your activity.

You must report your results in order to pay taxes on your profits.

What results to report?

These are:

  • Earnings or income realized since the last financial year ended
  • Income withholding tax (provision before termination, deferred capital gains)
  • Capital gains from the sale of your professional real estate

Capital gains realized on the sale of a commercial fund may be exempt from taxation under conditions..

Time to report your results

You must file your return within 60 days after the end of service.

The deadline 60 days starts from:

  • the publication of the transfer of the business in a legal announcement log,
  • the permanent closure of the establishment where the activity was carried out,
  • the effective cessation of a liberal or independent activity (for example, artist-author),
  • in the case of a regulated profession, Official Journal the appointment of the new office holder or office holder,
  • or the effective taking over of the management of the holding by the new acquirer of the undertaking.

  FYI : if the cessation of the activity is related to the death of the entrepreneur, the heirs (or right holders) have a 6 months to make the statement.

Declaration of results

You must file your return online.

The remote reporting form depends on your status as a contractor:

Company

Corporation tax return

Cerfa n° 11084*21 - Ministry of Finance
Other number : 2065

Trader or craftsman

2020 Income Tax Return 2019: industrial and commercial benefits (BIC)

Cerfa n° 11085*22 - Ministry of Finance
Other number : 2031-SD

Liberal profession

Non-Commercial Profits (NBB) - Controlled Reporting Regime

Cerfa n° 11176*22 - Ministry of Finance
Other number : 2035-SD

Farmer

Agricultural Profits - Simplified Actual Profit Scheme

Cerfa n° 11144*22 - Ministry of Finance
Other number : 2139-SD

Farm Profits - Normal Real Tax System - Reporting

Cerfa n° 11148*22 - Ministry of Finance
Other number : 2143-SD

You must regularize the payment of VAT when you permanently stop your activity.

You must complete the VAT declaration within:

You need to make payment on payroll tax when you permanently stop your activity.

To do this, you must complete the annual statement of liquidation and regularization of this tax.

You must do it within a time limit 60 days after the end of business and not later than 15 January of the following year.

Salary Tax - Annual Liquidation and Adjustment Return

Cerfa n° 11824 - Ministry of Finance
Other number : 2502-SD

  FYI : in the event of the death of the employer, the declaration must be made within 6 months after the death and no later than january 15 of the following year.

The Territorial Economic Contribution (CET) is a tax consisting of 2 contributions:

Business Property Assessment (CFE)

The stop date of the activity determines the conditions of payment of the CFE:

  • If your business ceased on December 31, you must pay the full amount of the CFE due for the year of termination.
  • If your activity has ceased during the year, you can ask the business tax department (SIE) for a reduction in the CFE compared to the time you have worked.

Change Return for Business Property Assessment (CFE) and Lump Sum Tax on Network Enterprises

Cerfa n° 14031#09 - Ministry of Finance
Other number : 1447-M-SD

Business Value Added Contribution (VAC)

You must value added declaration if your excluding tax revenue is greater than €152,500..

You must do it within a time limit 60 days after the activity has stopped.

Business Value Added Tax (VAC) - Statement of Value Added and Employee Strength

Cerfa n° 14030*09 - Ministry of Finance
Other number : 1330-CVAE-SD

You will only pay the EAC later if you have completed more than €500,000 of CA HT.

Removal from social security

The CFE send your declaration of cessation of activity:

  • the social security of the self-employed (ex-RSI) if you were engaged in a commercial, craft, industrial or liberal activity,
  • agricultural social security (MSA) if you were a farmer.

Within 30 days of the end of your activity, you will receive a document indicating your cancelation and the status of your account.

  Warning : for artist-authors, transmission is not automatic. The artist who ceases his activity must transmit to the House of Artists or the Agessa a a copy of the declaration made to the Urssaf within 2 months after the cessation of the activity.

Who shall I contact
  • Maison des Artistes (MDA)

    The MDA is the contact point for graphic and plastic authors concerning information on their affiliation to the Social Security and for any advice on social action related to their profession.

    By phone

    From Monday to Friday: from 9am to 5pm

    0 806 804 208 (price of a local call)

    By Email

    http://www.secu-artistes-auteurs.fr/formulaire/contact/contact

    By mail

    60 rue du Faubourg Poissonnière

    75484 Paris Cedex 10

  • Association for the Management of Social Security of Authors (Agessa)

    The Agessa is the contact point for artists-authors for information on their affiliation to the Social Security and for any advice on social action related to their profession.

    By phone

    Monday to Friday from 9am to 5pm

    0 806 804 208 (price of a local call)

    By Email

    http://www.secu-artistes-auteurs.fr/eform/submit/contact_auteurs_agessa

    By mail

    60 rue du Faubourg Poissonnière

    CS30011

    75484 Paris cedex 10

Social Declaration of the Self-employed (ISD)

You have a deadline 90 days maximum (after you have been removed from social security) to report your current and previous year's income.

To do this, you must complete the self-employed person's social return (ISD).

Adjustment of contributions (sickness, retirement)

You must regularize the payment of your social security contributions when you permanently stop your activity.

These are health and maternity insurance contributions, family allowances and contributions for your retirement.

They are based on your previous year's professional income.

To make the payment, you have a delay 30 days maximum after sending your CIO.

Example :

You have ceased your activity in 2020, so you have already paid the contributions calculated on the income of the year 2018, then you have to pay the contributions calculated on your income of the years 2019 and 2020. The payments already made will be deducted from the calculation.

Withdrawal from your pension fund

You must cancel the old-age insurance plan on which you depend.

Trader or craftsman

The contribution is calculated until the last day of the quarter in which the activity ceased.

It is regularized on the income of the year in which the activity stopped.

Example :

For a termination occurring on January 15, the calculation is made until March 31.

Liberal profession

The contribution shall be calculated until the last day of the quarter following the date of cessation of activity.

Example :

For a termination occurring on January 15, the calculation is made until March 31.