Voluntary closure of business: termination
Verified 15 May 2022 - Legal and Administrative Information Directorate (Prime Minister)
Voluntary cessation of activities concerns companies that are not termination.
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Micro-entrepreneur
In order to close the company, the micro-entrepreneur must complete a business termination form and take social and fiscal measures.
Termination decision
Within 30 days of ceasing to be active, the micro-entrepreneur must make the declaration.
It can be done online or by mail.
Online
You can use the single window of formalities:
You can also use the Urssaf website:
On site or by correspondence
Business
You must complete Form P4 2 copies.
Company Write-Off - Individual (P4 CM)
You must forward them to the company Formalities Centre (CFE) of the Chamber of Commerce on which you depend.
This formality is free.
Handicraft activity
You must complete Form P4 2 copies.
Company Write-Off - Individual (P4 CM)
You must forward them to the company Formalities Centre (CFE) of the Chamber of Trades you depend on.
This formality is free.
Who shall I contact
Liberal activity
You must complete a P2-P4 form that you must send by mail at the Urssaf company formalities centre (CFE) that you depend on.
This formality is free.
Declaration of Change or Termination (Form P2-P4)
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Result Statement
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You chose the conventional tax system
You must drop within 45 days following the end of business the following documents at the company Tax Service (EIS):
- Income Tax Return 2042
- Supplementary Income Statement No. 2042-C PRO on which you enter the realised turnover of 1to January until the date of termination.
Supplementary declaration of income of self-employed professionals
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The results are subject to immediate income tax.
However, this tax is temporary: it will be deducted from the amount of income tax that is established for the entire year of cessation.
You chose the tax-free income tax payment
Monthly Return
You must report your turnover to the company Tax Service (EIS) within one month of the date of your separation.
With this plan, you pay income tax and mandatory social contributions at once.
Quarterly Reporting
You must file your income tax return within one month of calendar the final closure of the micro-company.
With this plan, you pay income tax and mandatory social contributions at once.
Company Property Assessment (CFE)
The company Property Assessment (CFE) is due each year according to your situation atto January of the year.
In case of cessation of activity during the year, the EFC remains established for the whole year.
However, when you receive your tax notice, you can apply to your company Tax Service (EIS) by way of a claim for the reduction of your EFC based on your business time.
You can make this request by using your secure email which is available in your business area of the site imts.gouv.fr.
FYI
if your revenue or revenue does not exceed €5 000 over a 12-month period, you are exempt from EFC.
individual business
The entrepreneur who wishes to close his company must complete the formalities of cessation of activity.
It must also take social and fiscal action.
Termination of company Formalities
Within 30 days of the end of your business, you have to declare the cessation of activity by completing a form to cancel your individual business.
The declaration of cessation of activities shall result in radiation automatic company on the following registers:
- Statutory Registers (RCS: titleContent, RM: titleContent)
- Sirene Directory
- Social Organisation Professional Affiliate Files
- Tax Administration Managed Active Business Files
FYI
if you are an individual entrepreneur, your 2 heritages, professional and personal, come together in one heritage. Your creditors can claim their claims on all your assets.
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Business
Online
You must complete an online declaration at:
By mail or on site
You must send or file on-site the P4 form to the company Formalities Centre (CFE) of the Chamber of Commerce and Industry (CCI).
Company Write-Off - Individual (P4 CM)
If you are a street trader, you must provide the original of your street trader card.
If you are travelling by train, you must provide the original of the traffic register and the original of your travelling merchant card.
The declaration of cessation of activity entails the deletion of the company from the register of trade and businesses (RCS). The partners thus become undivided co-owners of the assets of the business which remain after settlement of the debts.
Handicraft activity
Online
You must complete a declaration at:
By mail or on site
You must send or file the P4 form on site at the company Formalities Centre (CFE) of the Chamber of Trades.
Company Write-Off - Individual (P4 CM)
Who shall I contact
The declaration of cessation of activity results in the removal from the business register (RM), which means the legal disappearance of the company. The partners thus become undivided co-owners of the assets of the business which remain after settlement of the debts.
Liberal activity
Online
You must declare the cessation of activity on the following site:
By mail or on site
You must send or deposit the following form at the Urssaf company Formalities Centre (CFE).
Declaration of cessation of activity - natural person (P4 PL)
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The declaration of cessation of activity results in the deletion of the corresponding register of your profession (for example, ADELI directory for certain health professionals), which means the legal disappearance of the company.
The partners thus become joint owners of the assets of the business that remain after settlement of the debts.
You must:
- Result Statement
- VAT Declaration
- Declaration on company Value Added Assessment (EVAC)
- Demand for reduction company Property Assessment (CFE) if you have ceased your activity during the year.
Result Statement
In 60 days after the effective date of closing of the activity, you must subscribe online a last declaration of result.
To know: for individual companies who have been in business for at least 5 years, it is possible to benefit, under conditions, from a capital gains exemption.
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Business
The industrial and commercial profits return must be sent to the tax department in EDI or EFI.
2022 Income Tax Return 2021 - Industrial and Commercial Profits (BIC)
Handicraft activity
The industrial and commercial profits return must be sent to the tax department in EDI or EFI.
2022 Income Tax Return 2021 - Industrial and Commercial Profits (BIC)
Liberal activity
The non-commercial profit statement (NLC) must be sent to the tax department in use EDI or EFI.
VAT declarations
You need to address EDI or EFI a final VAT return. It is different if the company is subject to normal real or simplified real regime VAT.
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Normal actual VAT regime
Within 30 days of termination, you must contact in EDI or EFI the CA3 form.
Simplified actual plan
Within 60 days of termination, you must contact in EDI or EFI the annual VAT accrual declaration on Form CA 12.
Annual VAT accrual declaration - Simplified scheme
Territorial Economic Contribution (TEC)
It is composed of company Value Added Assessment (EVAC) and company Property Assessment (CFE).
Company Value Added Assessment (EBAF)
If turnover exceeds €152,500, you must make a final declaration within 60 days that follow the end of the activity even if you do not pay anything.
Payment of the EBAF is made in EDI or EFI.
Company Value Added Assessment (EBAF) - Statement of Value Added and Employee
Online tax account for professionals (EFI mode)
Company Property Assessment (CFE)
Payment of the CFE is done in EDI or EFI.
- If you ceased your business on December 31, you must pay the full amount of EFC due for the year of termination.
- If you have ceased your business during the year, you can apply to your company Tax Service (EIS) for a reduction in your contribution based on your business time. The application must be completed by December 31 of the following year.
FYI
if your turnover or revenue does not exceed €5 000 over a 12-month period, you are exempt from EFC.
You have only one tax return to calculate your contributions, personal social contributions and income tax.
This declaration is to be made only by dematerialised way on the site imts.gouv.fr.
The online tax return form (Form 2042) includes a specific social component called income tax return.
It is used to calculate personal contributions and contributions.
These items are automatically passed to your Urssaf.
2022 Online 2021 Income Statement
Who shall I contact
If you have any employees, you must, within 60 days of leaving, send a registered social declaration (DSN) with pay for the last month of employment.
The DSN device will then be automatically informed of the cessation of activity.
Business
To cease a business' activity, the following steps must be taken:
- Complete dissolution formalities
- Liquidate business
- Clear
Termination of business on an amicable basis is called voluntary dissolution for a business.
Decision on voluntary dissolution
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SAS
The head of the business shall convene a general meeting of all partners to decide on the voluntary dissolution and appoint an amicable liquidator.
The amicable liquidator shall be appointed unanimously by the partners.
The appointed liquidator is either the business executive, a partner or a person outside the business.
SARL
The business manager shall convene a general meeting of all partners to decide on the voluntary dissolution of the business and appoint an amicable liquidator.
The amicable liquidator is appointed by a majority of shares +1 share.
The appointed liquidator is either the business manager, a partner or a person outside the business.
SA
The head of the business shall convene a general meeting of all partners to decide on the voluntary dissolution of the business and appoint an amicable liquidator.
The friendly liquidator shall be appointed under the conditions of quorum and majority laid down for the ordinary general meetings (AGO).
The appointed liquidator is either the business executive, a partner or a person outside the business.
Formalities of voluntary dissolution of activity
In month following the decision to dissolve the business and to appoint the liquidator, the liquidator files the following documents at the company Formalities Centre (CFE):
- Minutes of the meeting which decides on the dissolution with appointment of the liquidator
- Form M2
- Proof of the decision to dissolve in a legal ad support
- Declaration on the honour of non-conviction and filiation (surname and first names of father and mother) of the liquidator
- Duplex copy of valid national identity card of liquidator
Company Amendment Statement - Corporation (M2)
The business is in liquidation at the time the dissolution was decided.
It must then include the statement on all letters, invoices, announcements and miscellaneous publications Business in liquidation and the name of the liquidator under penalty of criminal sanctions.
Warning
once the business has been dissolved, the business must be liquidated and then cancelled.
The amicable liquidator has the following tasks:
- Sell movable property and buildings belonging to the company
- Pay creditors
- When an available balance exists, allocate it among the partners according to their respective contributions
During his term of office, the liquidator represents the business to third parties.
If he wishes to continue the ongoing activities of the business or to engage in new activities for the purposes of the liquidation, he must seek the authorisation of the partners by convening them in general assembly.
Within 3 months of the end of the financial year, the liquidator shall draw up the annual accounts and a written report in which he shall report on the liquidation operations.
FYI
the assets of the company cannot be sold to the liquidator or his relatives.
Closure of mutual settlement
At the end of the liquidation, the partners shall be summoned by the liquidator to approve the final accounts of the liquidation.
The liquidator then proceeds with the delisting.
summoning of the members to decide on the final liquidation accounts
At the end of the winding-up, the partners are summoned ordinary general assembly by the liquidator for the following actions:
- Determine the final liquidation accounts of the liquidator
- Give discharge to the liquidator (i.e. approve its management)
- Discharge
- Finding the Settlement Closing
Settlement accounts end in settlement bonus or a settlement fund.
If the settlement accounts show a settlement bonus, the settlement report must be registered with the company Tax Service (EIS) on which the business depends.
The bonus is subject to a 2.5%.
It is not taxed for Single-Personal Simplified Share businesses (UAS) and Single-Personal Limited Liability companies (UURL).
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Warning
when the closing meeting cannot deliberate or refuse to approve the accounts of the liquidator, the liquidator or any interested party may appeal to the commercial court.
In this case, the commercial court shall rule on the accounts of the liquidator and on the closure of the liquidation instead of the assembly of the associates.
Closing Formalities
Following the ordinary general meeting of approval of the liquidation accounts, the liquidator must have a notice of termination published in a legal ad support.
Closing the liquidation shall within 3 years upon dissolution.
If not, public prosecution or any person who has an interest (for example, a creditor) may apply to the court for the winding-up of the business.
The vanishing business is third party after completion of the business cancellation formalities. For example, they can no longer claim their claims.
FYI
the formalities of a dissolution and then a liquidation for a SARL cost around €600.
Business Radiation
Liquidator submits a file for the business write-off within 1 month of the date of the closing of the liquidation.
Formalities for business removal
The business Write-Off Form (Form M4) must be completed and filed or sent by mail or online to the company Formalities Centre (CFE) whose business depends on the activity being carried out.
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Business
The liquidator shall proceed with the formalities of de-business to the Commercial and business Register (CSR).
He must file or transmit by mail or online to the company Formalities Centre (CFE) of the Chamber of Commerce the following documents:
- Write-off (Form M4)
- Minutes of approval of certified liquidation accounts by the liquidator
- Copy of final liquidation accounts
- Proof of the publication of the notice of closure of the liquidation operations in a legal ad support
Handicraft activity
The liquidator carries out the formalities of cancellation of the business to the register of trades.
He/she must file or transmit by mail or online to the company Formalities Centre (CFE) of the Chamber of Crafts by providing the following documents:
- Write-off (Form M4)
- Minutes of approval of certified liquidation accounts by the liquidator
- Copy of final liquidation accounts
- Proof of the publication of the notice of closure of the liquidation operations in a legal ad support
Company Write-Off - Corporation (M4)
Who shall I contact
Liberal activity
The liquidator shall proceed with the formalities for the cancellation of the business at the Urssaf company formalities centre (CFE) by providing the following documents:
- Write-off (Form M4)
- Minutes of approval of certified liquidation accounts by the liquidator
- Copy of final liquidation accounts
- Proof of the publication of the notice of closure of the liquidation operations in a legal ad support
Company Write-Off - Corporation (M4)
Who shall I contact
Termination of business requires lobbying both the tax authorities and the social agencies.
Tax returns
Declaration of results
The declaration of income shall be drawn up by the liquidator within 60 days from the date of termination.
This date shall be the date of approval of the final accounts of liquidation drawn up by the liquidator.
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Business under business tax
The liquidator must make a final online declaration of results in mode EFI or EDI :
Income Tax business
Business
The liquidator must make a final online declaration of results in mode EDI or EFI :
2022 Income Tax Return 2021 - Industrial and Commercial Profits (BIC)
Handicraft activity
The liquidator must make a final online declaration of results in mode EDI or EFI :
2022 Income Tax Return 2021 - Industrial and Commercial Profits (BIC)
Liberal activity
The liquidator must make a final online declaration of results in mode EDI or EFI :
Value added tax (VAT)
Liquidator must teletransmit in mode EDI or EFI a final VAT return.
The approach varies depending on whether the company is subject to normal real or simplified real regime VAT.
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Normal actual VAT regime
Liquidator must transmit in mode EDI or EFI VAT return form (CA3) within 30 days after the end of service.
Simplified actual plan
Liquidator must transmit in mode EDI or EFI the VAT accrual form (CA12) within 60 days after the end of service.
Salary tax
If you are subject to payment of payroll tax (TS), you
- within 60 days of termination
- and by 15 January of the following year, complete the annual statement of liquidation and settlement of the TS (form n°2502).
This form must be submitted in EDI or EFI.
Salary Tax - Annual Statement of Settlement and Settlement
Territorial Economic Contribution (TEC)
It is composed of company Value Added Assessment (EVAC) and company Property Assessment (CFE).
Company Value Added Assessment (EBAF)
Only companies with sales above €500 000HT: titleContent have to pay.
- Declaration of value added and employee headcount (form n°1330-SD-CVAE)
Company Value Added Assessment (EBAF) - Statement of Value Added and Employee
- Statement of Settlement and Settlement (Form 1329-DEF)
Company Value Added Assessment (BAC) - Statement of Settlement
The obligation to report and pay the prepayments and the balance of the CVAE is in EDI or EFI.
Company Property Assessment (CFE)
The EFC is due annually depending on the situation at 1to January of the year.
In case of termination during the year, the EFC remains established for the whole year.
However, when the business receives its tax notice, it can apply to the company Tax Service (EIS) by way of a claim to reduce its contribution in proportion to your business time.
The business can use the secure messaging available in its business area of the tax site.
FYI
if your revenue or revenue does not exceed €5 000 over a 12-month period, you are exempt from EFC.
Social declarations
The executive must complete a registered social statement with pay for the last month of employment.
The DSN device will then be automatically informed of the cessation of activity.
Nominal Social Declaration (DSN)
The leader has no further steps to take.
The Social Declaration of the Self-employed (ISD) has been deleted.
The online tax return form (Form 2042) includes a specific social component called income tax return. It is used to calculate contributions and personal social contributions. These elements are automatically transmitted to the Urssaf.
In effect, the annual income tax return last fiscal year is made with the tax services that now pass the income of the leader (as self-employed) to the Urssaf.
The provisional contributions will then be adjusted on the basis of the actual income of the year concerned.
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Speak with an advisor on Place des Entreprises- Trade Code: Articles L237-1 to L237-13Winding-up of a commercial business
- Trade Code: Articles L526-22 to L526-26Individual Contractor Status
- General tax code: Article 151fExemption from capital gains
- Company Write-Off - Individual (P4 CM)
Form
- Company Write-Off - Corporation (M4)
Form
- Declaration of cessation of activity - natural person (P4 PL)
Form
- Business tax return
Form
- 2022 Income Tax Return 2021 - Industrial and Commercial Profits (BIC)
Form
- Non-Commercial Profits (NLC) - Controlled Reporting Regime
Form
- Nominal Social Declaration (DSN)
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