Suspension of operations in Poland

2017-02-23 Running your own business involves risk erode liquidity. The effects work the entrepreneur may be in a period of low income.

Polish legislation provides in such a situation some facilities, namely, instead of total elimination of business, the entrepreneur may decide to temporarily suspend operations. The entrepreneur can stop running your business because of the seasonal nature of the business and the lack of orders which can produce sufficient profit, and therefore no funds to pay fixed costs, fees and taxes. Moreover, among the reasons for this phenomenon they are exchanged or disease owners, travel abroad or just some random events.

What are the benefits of the suspension of operations in a hostile period?

- Entrepreneur ceases to pay the advance payment of income tax.
- There must submit VAT returns.
- It does not have to pay insurance premiums.

What are the disadvantages to suspend business?

- During the suspension entrepreneur is checked out from ZUS, and after 30 days from the last payment of health insurance premiums loses the right to health services.
- The period of suspension of activities is not counted the years of work for the receipt of a pension.

Who can suspend the activity?

- An entrepreneur who runs a one-man business.
- No employees.

In the case of partners of civil partnership overt or suspension of business by one of the partners it is effective only when it will be made also by the other shareholders.

For how long you can stay in business?

For a minimum of one month and a maximum of 24 months. The period of suspension of business begins from the date indicated in the application, but not earlier than the date of application, and continues until the request for the renewal of activity.

Where and how to make the suspension of activity?

You must submit an application to the Central Registration and Information on Economic Activity (CEIDG). CEIDG Printing-1 is also the application for entry in the register, but that concerned the suspension, check the X in the box 01.3.
Detailed information in the following link:
https://prod.ceidg.gov.pl/ceidg.cms.engine/?D;5e0bc409-2e50-43b3-9eb2-3bb4f06dbaf0
(Also available in English)

What the law prohibits the suspension of activities?

An entrepreneur can not do business and obtain income from this source. There is also no right to depreciation of fixed assets. Cessation of deductions made from the month following the month in which suspended operations. In addition, the entrepreneur has the right to perform under the service contract or the work of the same services that fall within the scope of services provided under suspended business activities.

What steps an entrepreneur can take place during the suspension of activity?

According to the law on freedom of economic activity during the period of suspension of an economic activity the entrepreneur has the ability to:
• perform all actions necessary to maintain or secure sources of income, eg. Payment for rent, utilities,
• taking receivables or payment of liabilities arising before the date of suspension of their business,
• dispose of its own assets and equipment (then submits to the office of a declaration of VAT),
• to participate in court proceedings, tax proceedings and administrative procedures related to the economic activities carried out prior to the suspension,
• perform all duties prescribed by law, for example; submission of annual tax return (even if the income of the company for the entire fiscal year is 0),
• achieving financial revenues, including the activities carried out before the suspension of their business,
• subject to fiscal control on the terms provided for entrepreneurs doing business.

How to hang up activity?

Before the end of the suspension period shall be submitted on the form CEIDG-1 application unsuspension business. Failure to submit the application for the resumption of economic activity before the end of 24 months will result in the deletion of the entrepreneur from the register of companies.


Is it possible to extend the suspension of operations?
Polish law does not provide for a situation in which the extension of the suspension of business activity. The entrepreneur, however, has the ability to resume operations, and then re-suspend its done this for the above described application CEIDG-1.