Today we will talk about how to suspend a company without liquidating it.
Polish businesses that for some reason are temporarily not operating can take advantage of an option provided by Polish law and suspend their business activity.
Suspension of activity can last from 1 to 24 months, provided the company does not employ any workers.
Documents that must be submitted to suspend a company's activity:
- a management board decision;
- a statement of no employees at the company;
- a registration card duly completed and signed by the company's manager.
During the suspension period the company cannot conduct business activity or earn revenue from it. However, the business has the right to:
- take actions necessary to preserve its sources of income (maintaining the office, paying real property taxes, etc.);
- receive income and pay money on obligations that arose before the suspension of activity;
- dispose of its fixed assets.
At the same time, a company suspended in its activity has a number of important obligations:
- notify the tax authority of the suspension of activity (within 7 days of the suspension);
- continue to keep its accounting books;
- convene and hold, in accordance with the company's articles of association, the annual ordinary general meeting;
- submit annual financial statements to the tax authority and register them with KRS;
- take part in proceedings (judicial and administrative) related to the company's business activity from before the suspension;
- resume business activity at the end of the period for which it was suspended.
In addition, a suspended company may, if necessary, be subject to a tax audit on the same principles as an active one.
The main advantage of suspending a company's activity is its exemption from the obligation to periodically file VAT declarations, and from the monthly payment of income tax (CIT) advances. In addition, if a member of the company was paying social insurance contributions (ZUS), then during the suspension period they are also exempt from that obligation.
As you can see, suspension of activity is a very useful step for a Polish company that is temporarily not operating. However, this does not automatically resolve all its problems, since the management board must continue to take steps to administer the business.