Closing a sole proprietorship

Before closing your business, make sure all obligations are settled:

Obligations to settle

• Contractors — pay all invoices and end contracts with suppliers and clients
• Employees — if you have any, carry out the dismissal procedure (notice, employment certificates, holiday settlement)
• ZUS — pay any outstanding contributions
• Tax office — pay any outstanding taxes
• Lease agreements — terminate your business premises lease

Closing stock-take (liquidation inventory)

On the date of cessation prepare a closing stock-take (liquidation inventory) covering:

• trade goods
• materials
• finished products
• semi-finished products
• defects and waste

The inventory value is entered as the last entry in the KPiR (or tax records).

After closing your business you must settle with the tax office.

Annual PIT return

• File the annual PIT return (PIT-36, PIT-36L, or PIT-28) for the year in which you close the business
• Deadline: by 30 April of the following year (standard deadline)
• Include the liquidation inventory value

JPK_V7 (if you are a VAT payer)

• File the last JPK_V7M (monthly) or JPK_V7K (quarterly) file
• In the last JPK include the VAT liquidation inventory
• Deadline: the 25th day of the month following the last settlement period

Closing the KPiR or tax records

• Enter the liquidation inventory value as the last entry
• Close the tax book on the date of cessation

If you are a registered VAT payer, you must submit form VAT-Z (notification of cessation of taxable activities).

How to submit VAT-Z?

• Online — via the e-Tax Office (podatki.gov.pl)
• In person — at the tax office competent for your business address
• By post — as a registered letter

Deadline

• Submit VAT-Z on the last day of performing taxable activities or earlier

VAT liquidation inventory

On the date of cessation prepare a stock-take for VAT purposes:

• goods that have not been sold
• fixed assets and equipment for which input VAT was deducted
• Report this inventory in the last JPK_V7 file

You must pay VAT on goods and fixed assets included in the VAT liquidation inventory.

To officially close your business, submit a CEIDG-1 application indicating cessation of activity.

How to apply?

• Online — via Biznes.gov.pl (log in via Login.gov.pl)
• At a municipal office — in person at any office
• By post — as a registered letter with a notarially certified signature

Deadline

• Submit the application within 7 days of permanently ceasing activity

What does the application contain?

• Date of cessation (may be a past date, but no more than 12 months back)
• Reason for deregistration

Deregistration from CEIDG is free of charge and happens automatically after a correct application is submitted. The CEIDG system automatically notifies ZUS, GUS, and the tax office.

Suspension is an alternative to closure — the business formally exists but you do not carry on active operations.

Conditions for suspension

• You may suspend for an indefinite period (minimum 30 days)
• You cannot employ workers under employment contracts (contractors allowed if they do not work during the suspension)

How to apply?

• Online — via Biznes.gov.pl
• At a municipal office — in person

What do you gain from suspension?

• No ZUS contributions — you do not pay social or health insurance contributions
• No PIT advance payments — no monthly advance payments required
• No JPK_V7 — no JPK files required for suspended periods
• You retain your NIP, REGON, and CEIDG entry

Obligations during suspension

• You may collect receivables from before the suspension
• You must settle obligations arising before the suspension
• You must file an annual PIT return

Reactivating a suspended business requires submitting a CEIDG-1 application to amend the entry.

How to apply?

• Online — via Biznes.gov.pl
• At a municipal office — in person

What happens after reactivation?

• ZUS — you must re-register for insurance (ZUS ZUA or ZUS ZZA) within 7 days
• VAT — if you were a VAT payer and the office deregistered you, re-submit VAT-R
• PIT advance payments — you resume the obligation to pay advances
• JPK_V7 — you resume the obligation to file JPK files

Reactivation date

• You may specify a future date
• Reactivation is effective from the date stated in the application

After closing your business you must deregister from social insurance.

Automatic deregistration

If you submitted the CEIDG-1 closure application, the system automatically notifies ZUS and generates form ZUS ZWUA (deregistration of the insured person).

Manual deregistration

If automatic deregistration fails for any reason, submit the following yourself:

• ZUS ZWUA — deregistration from social and health insurance
• ZUS ZWPA — deregistration as a contribution payer (if you had employees)
• ZUS ZCZNA — deregistration of family members from health insurance

Deadline

• 7 days from the date of cessation

After completing all formalities, close your business bank account and archive your documents.

Closing the bank account

• Close your business bank account after all transactions are settled
• Make sure there are no pending incoming transfers
• Update your account number with contractors who may have outstanding payments

Document archiving

You must keep business documents for a specified period:

• Tax documents (invoices, KPiR, tax records): 5 years from the end of the year in which the tax payment deadline fell
• ZUS documents: 5 years from the date of submission to ZUS (since 2019; earlier ones — 10 years)
• Employee documents: 10 years from the end of the year in which employment ended (for employees hired since 2019)
• Civil-law contracts: 5 years from the end of the contract