Suspension of the company’s activity is a temporary and reversible suspension of the company’s business. It allows you to get through difficult periods and return to running the company at a more favorable time.
When can you suspend the activity of a limited liability company?
A company has the right to suspend its business activity for any reason when:
- has temporary difficulties in running the company,
- has no employees,
- the period of its suspension will be more than 30 days and less than 24 months.
The start of the suspension is on the date specified in the application for suspension of business, filed with the National Court Register (KRS). The start date of suspention cannot be earlier than the date of filing the application. It is worth noting that, unlike activity registered in the Central Register of Economic Activity (CEIDG), activity registered in the KRS cannot be suspended retroactively. Similarly, this applies to the date of resumption of activity – it cannot be earlier than the date of submission of the application for resumption of activity.
How to suspend the activity of a limited liability company?
As of 1 July 2021, suspension of a limited liability company’s activity is only possible electronically through the Court Registry Portal (PRS). This also applies to companies established through the s24 system, as the templates available in the s24 system do not offer the possibility of filing an application to suspend the company’s activity. Therefore, regardless of the type of company, it will be necessary to use the PRS system to file the application. To complete this process, it is necessary to create an account in the e-forms section of the KRS. After logging in, prepare a suspension application in the system, attaching to it:
- a resolution of the board of directors to suspend the company’s activity, and
- a statement of the board of directors about the company’s failure to hire employees.
The attachments can be electronically signed. If the attachments are signed by wet-ink signature, the scans can be attached to the application. In this option it is important that the originals are sent to the National Court Register within 3 days of sending the application. There is no fee for the application to register the suspension of the company’s activity. After electronic signing, the application is sent through the system.
The entry in the National Court Register on the suspension of the company is declaratory in nature. That is, a resolution adopted by the Board of Directors has the effect of suspension as of the date of the resolution. The entry in the National Court Register only confirms that the company’s activity is suspended.
Benefits of suspending the activity of a limited liability company
The main benefit of suspension of the activity is that the company is exempt from paying advance income tax. During the period of suspension of activity, limited liability companies are exempt from paying advance payments for CIT. In addition, there is no need to file Social Security or VAT returns (with some exceptions) during the suspension.
SKLAW comprehensively supports Polish and foreign entrepreneurs on suspending the activity of a limited liability company in Poland. We provide an individual approach to the entrepreneur’s needs and comprehensive service in the process of suspending the activity of a limited liability company.