The Business Activity Act and the Freedom of Business Act lay down the rules for winding-up companies.
Types of liquidation
Most frequently, voluntary winding-up, which means the end of a company’s business activity, is caused by long-term, unsatisfactory financial results. In order to wind up a company, an application must be submitted to the appropriate registration body.
Compulsory winding-up most often results from the company being insolvent. When this happens, it is necessary to institute bankruptcy proceedings, as laid down in bankruptcy law.
Under Art. 14 of the act dated 11 March 2004 on Value Added Tax (Journal of Laws of 2011, No. 177, item 1054), in the following cases:
- dissolution of an unincorporated civil or commercial partnership,
- a VAT payer being a natural person ceasing to perform activities which are subject to VAT,
- a VAT payer being a natural person discontinuing to perform activities which are subject to VAT for a period of at least 10 months (excluding taxpayers who suspend running a business under the Freedom of Business Act)
the products manufactured by a given company and goods which were purchased and were not subject of a delivery, shall be subject to VAT. In this case, taxpayers shall make inventory by physical stocktaking as on the partnership dissolution date or the date of discontinuance to perform activities which are subject to VAT. Taxpayers shall attach a report on the physical stock taking, on the value and amount of due tax determined on the basis of the same, to the tax return submitted for the period including the partnership dissolution date or the date of discontinuance to perform activities which are subject to VAT. The obligation does not apply to taxpayers exempt from tax under Art. 113 item 1 and 9 of the Act referred to above.
When filing for bankruptcy is the only option left for a business owner, it pays to cut losses, initiate proceedings sooner rather than later, and move on to a new business project.
Service point for businesses
Points of single contact referred to in Art. 6 of the Directive on services in the internal market allow service providers to complete formal steps and fulfill procedures connected with starting and providing services in a remote, electronic mode, and to obtain appropriate information and support. Under the Directive, service recipients can also use the contact points to obtain information on the use of services and on consumer-related matters.
Deregistration of a business
Registration with the Business Register is subject to deletion in cases specified in the provisions of the Business Activity Act.
In order to liquidate a company registered with the National Court Register, an application should be submitted stating the legal form of the company, company name, KRS number, tax identification number (NIP), and the number in the National Official Business Register (REGON).
Liquidation of a company means that it is necessary to pay its tax liabilities.
There are no fees for suspending and renewing the operation of a company.
Deregistration from the social insurance system
The rules of deregistration from the social insurance system and relevant forms can be found on the website of the Social Security Institution.
Documents should be submitted to the offices of the Social Security Institution competent for the registered office of the company.
VAT payer deregistration
A VAT payer who ceases to operate is required to report this fact to the head of a revenue office on a VAT - Z form. An entity registered as an EU VAT payer that stops handling intra-Community transactions is required to report this fact to the head of a revenue office by updating the VAT - R registration form within 15 days, beginning from the day this happens.
Deletion from the register of VAT payers is tantamount to deletion from the register of EU VAT payers handling intra-Community transactions.
Excise tax payer deregistration
When an entity ceases trading in the field of excise goods, it is required to report this fact to the head of the relevant customs office within 7 days on the correct form.
If this fact is not reported, the head of the customs office that previously registered the entity officially removes it from the register.