Social consequences of discontinuance of activity for the individual entrepreneur
Verified 01 April 2025 - Directorate for Legal and Administrative Information (Prime Minister)
In the event of cessation of activity (judicial liquidation, judicial redress or voluntary cessation of activity), an individual entrepreneur benefits from various social rights: maintenance of health insurance, payment of a self-employed worker's allowance (SLA) if the entrepreneur fulfills different conditions, and possibly a right to retirement.
In case of cessation of activity, the entrepreneur is removed from the Urssaf but he continues to benefit from health coverage.
Ursaf radiation
To declare the cessation of activity, the individual entrepreneur must complete a total cessation of activity form on the site of the company formalities window:
As soon as the cessation of activity is taken into account, the Urssaf sends the following documents to the individual contractor:
- Notification of cancelation
- Tax return form to be completed and submitted from Urssaf messaging. The individual entrepreneur then has 90 days to declare his final professional income. This declaration is used to regularization of the account with the Urssaf, including in the event of termination for retirement.
FYI
In the event of a court liquidation, the liquidator or the agent shall transmit the court liquidation judgment to the Urssaf. The individual contractor then receives a notice of cancelation within 30 days of the judgment. If this is not the case, the individual contractor must transmit this judgment directly to the Urssaf.
Maintenance of health coverage and care
When the sole trader ceases his activity, his health insurance coverage is paid by the Primary Health Insurance Fund (Cpam) of his place of residence.
Entrepreneurs can find out about their health care (access to rights and care in particular) through the coordinated social security assistance: Help!.
For more information, you can consult the Urssaf page:
The individual entrepreneur (craftsman, trader or liberal professional) having ceased its activity in such a way unintentional and permanent is not eligible for the Return to Employment Assistance (RWA). On the other hand, he can benefit from the self-employed person's allowance (SLA) if he fulfills certain conditions.
The ITA is paid by France Travail.
Self-employed, find out about your Self-Employed Workers’ Allowance (ITA) entitlements
France Labor
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FYI
Individual entrepreneurs shall be granted specific unemployment insurance where they have voluntarily paid contributions to a private body (such as the Association for the Protection of Independent Employers (APPI) or the Association for the Social Guarantee of Heads of company (GSC))). This unemployment insurance may be paid in addition to the ITA or in place of the ITA.
Individual business Condition for cessation of activity of the
The Head of company who ceases his activity must be in one of the following situations:
- The company shall be the subject of a judgment opening judicial liquidation.
- The company has made a declaration of cessation of activity total and final when the activity is no longer economically viable (at least 30% income declared by the self-employed person on income tax return and certified by a trusted third party). This trusted third party is either an accountant or a representative of the Chamber of Commerce and Industry (CCI), Agriculture or Trades and Crafts.
Conditions for the award of the ITA
In order to be eligible for the self-employed allowance (SLA), the sole trader must complete all of the following conditions :
- Proof of self-employment for a minimum period of 2 years without interruption
- Be effectively looking for a job and registered as a jobseeker
- To provide proof, in respect of self-employment, of previous income from employment equal to or exceeding €10,000 per year on one of the 2 calendar years of activity preceding the year of termination
- Justify resources below a monthly ceiling equal to the amount of the RSA for a single person, or €646.52.
The granting of a right to the Return to Employment Assistance (RWA) allowance is also examined if the entrepreneur fulfills the conditions. In this case, this fee is paid instead of the ITA, if it is more advantageous.
Approaches and duration of the ITA
The sole proprietor must register on the France Travail website within 12 months of the termination of the company. After this registration, the contractor receives a file which he must complete and return to France Travail accompanied by the requested documents.
When the contractor meets the conditions, the ITA is awarded for a period of 182 calendar days (about 6 months). This period shall run from the date of entry on the list of jobseekers.
To find out more about ATI's request and its amount, you can consult the dedicated sheet on the website of France Travail:
The individual entrepreneur who quits his business and approaches retirement can ask his pension organization about his rights. If the entrepreneur is of retirement age, he must apply 4 to 6 months before the retirement date to the pension insurance.
To learn more about pension insurance, you can consult the dedicated sheet:
Pension Insurance: my rights, my steps, my retirement
National old-age insurance fund
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FYI
When the sole trader is engaged in a regulated business, he or she must go to the pension fund to which he or she belongs. For more information, see the factsheet on the social protection of liberal professionals.
When the individual entrepreneur is close to retirement and encounters financial difficulties, he can benefit from a retirement support scheme (ADR.).
For more details on ADR., you can refer to the dedicated card.
To be informed and helped on the study of pension rights and the steps to be taken, the entrepreneur can get closer to Help: the coordinated social security assistance for the self-employed:
FYI
For more information on applying for a pension, see the dedicated card.
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The public service accompanying companies
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Self-employed worker allowance (ITB)
Self-employed persons whose activity has ceased
Banque de France
National old-age insurance fund