Temporary cessation of the activity of the sole trader

Verified 01 January 2024 - Directorate for Legal and Administrative Information (Prime Minister)

Temporary cessation of activity allows activity to be suspended for a specified period without dissolving or deleting the company. During this period of inactivity, the sole trader retains his registration and continues to settle his tax and social security payments. Advertising formalities are necessary.

Temporary cessation of activity is possible unless you are experiencing financial difficulties that may lead to cessation of payments.

Warning  

Since 1er january 2023, it is no longer possible to carry out your procedures in a company Formalities Center (CFE). You must make them on the website of the company formalities office.

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General case

Temporary cessation of activity is possible.

Existence of a secondary establishment

If you have a secondary establishment, before proceeding with the formalities of the temporary cessation of activity, you must close that establishment by declaring the cessation of activity on the site of the company formalities window.

Company Formalities Window

After you have decided to temporarily cease your activity, you must within 1 month declare such termination on the website of the company formalities window.

Company Formalities Window

Please note

It is not necessary to announce the temporary cessation of activity in a legal listing support.

General case

The period of inactivity is limited to 1 year.

Your business is of a commercial nature

The period of inactivity is limited to 1 year.

However, this period may be extended by an additional year.

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General case

You must prepare an accounting balance sheet and a profit and loss account if you have at least 1 employee.

Signed commercial lease

  • You must prepare an accounting balance sheet and a profit and loss account if you have at least one employee.
  • You may terminate or not renew your commercial lease if it contains a clause providing for the uninterrupted personal exploitation of the goodwill.
    You can live in a company of domiciliation (with signature of a contract of domicile) or at your home.

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General case

During the temporary cessation of activity, you stay affiliated with your social security system :

  • Case of self-employed persons scheme (SFT) : when you have no working income, you still have to pay some compulsory minimum contributions (daily allowances, basic old-age insurance, invalidity and death).
  • Case of general social security scheme : the amount of your social contributions depends on your remuneration. You do not have to pay any contributions during the period of inactivity of the company.

You benefit from ACRE

The exemption from social security contributions which you benefit from under ACRE shall be maintained during the period of temporary cessation of activity.

During the temporary cessation period, you must complete certain formalities.

VAT

You are exempt from reporting and payment.

Taxation of profits

You are automatically subject to the income tax (IR) system. However, you can decide to be subject to business tax (SI) by opting to be treated as EURL.

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Income tax (IR)

Commercial and craft activities

Even if you are not active, you are subject to income tax (IR) in the BIC: titleContent. You must complete a profit and loss statement indicating that your turnover is zero.

Industrial and Commercial Benefits (BIC) Return [2024 Income Statement 2023]

Liberal activity

Even if you are not active, you are subject to income tax (IR) in the NBC: titleContent. You must report your net income using Form 2035-SD:

Non-Commercial Profit Reporting (NTB) - Controlled Reporting Regime

You must specify that the profit is zero.

Business tax (IS)

You must complete a income statement indicating that your turnover is zero.

Online tax account for professionals (EFI mode)

Company Property Tax (CFE)

You must pay the CFE for 12 months. You will then be exempt.

Warning  

Companies with a turnover or revenue of less than or equal to €5,000 are exempt from CFE.

After a temporary cessation of activity, you can either resume your activity by making an amending registration or permanently cease your activity.

Where there is no turnover or revenue or no turnover or revenue declaration during a period of at least 2 consecutive calendar years, the sole trader is presumed no longer pursue a professional activity justifying his affiliation to social security.

In this case, its deletion may be decided by the social security body unless the sole trader objects.

New amendment at the companies formalities window

At the end of Maximum 2 years, 2 situations are possible:

  • Either you reactivate your company
  • Either you're permanently out of business

You must declare your cessation of activity on the site of the company formalities window

Company Formalities Window

FYI  

Termination of activity results in your deletion from the RNE: titleContent and the SCR: titleContent for a commercial activity.

The permanent cessation of activity requires fiscal and social measures.

Ex officio cancelation

If you have not achieved or reported any turnover or revenue for at least 2 calendar years consecutive, the director of the Urssaf informs you that your social security is being considered.

You can object to this delisting within 1 month.

The cancelation of social security entails automatic cancelation from legal registers and registers (such as the SCR: titleContent, on RNE: titleContent, the Mermaid).

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