Social consequences of dissolution for the business leader
Verified 01 April 2025 - Directorate for Legal and Administrative Information (Prime Minister)
The dissolution of a business (voluntary or involuntary) has consequences for the social protection of the manager: maintenance of health coverage, payment of the self-employed worker's allowance (ITI) and possibly study of pension rights.
When a business is dissolved, the manager loses his job and therefore no longer pays for his social protection. This does not mean that he no longer has health coverage.
Ursaf radiation
In order to declare the termination of his social mandate, the director must send the minutes of the general meeting at which he is dismissed to the Urssaf.
In the case of a dissolution of the business, he must also complete a full 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 manager:
- Notification of cancelation
- Tax return form to be completed and submitted from Urssaf messaging. The manager 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 judicial winding-up, the head of the business is automatically removed from the Urssaf upon receipt of the court's judgment, unless he is engaged in another independent activity. Without news from the Urssaf within 30 days, the leader must transmit the judgment to him.
Maintenance of health coverage and care
When the manager ceases his activity, his health coverage is covered by the Primary Health Insurance Fund (Cpam) of his place of residence.
He can find out about the care of his health (access to rights and care in particular) through the coordinated social security assistance: Help!.
For more information, you can consult the Urssaf page:
The manager does not contribute to the Return to Employment Assistance (RWA) under his social mandate. Thus, he cannot benefit from unemployment insurance as such.
However, France Travail offers a financial aid called the Allocation des travail libre (ATI) for executives whose business has been involuntarily and permanently dissolved.
Self-employed, find out about your Self-Employed Workers’ Allowance (ITA) entitlements
France Labor
Pour en savoir plus
In order to benefit from the ITA, the following conditions must be met:
- Concerning the business, it must be in one of the following situations:
- Dissolution following a judgment opening the proceedings judicial liquidation
- Procedure for judicial redress whose recovery plan provides for the replacement of the director
- Dissolution due to an activity that was no longer economically viable
- About the manager, all of the following conditions must be met:
- Proof of self-employment for a minimum period of 2 years without interruption
- Actually looking for a job and being 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 dissolution
- Justify resources other than income from work below the monthly lump sum of the RSA (active solidarity income) for a single person, or €646.52.
The manager does not have to take any specific steps to apply for the ITA. He only has to register on the France Travail website within 12 months of the dissolution of the business. After this registration, a file is sent to him. It must be completed and returned to France Travail with the required documents.
When the manager meets the conditions, the ITA is assigned to him for a 182-day period (about 6 months).
To learn more about the ATI application and its amount, you can consult the dedicated sheet on the France Travail website.
Where the manager has taken out unemployment insurance with a private body (such as the Association for the Protection of Independent Employers (APPI) or the Association Social Guarantee of Heads of company (GSC)), he may receive unemployment insurance in addition to or instead of the ITA.
FYI
The manager who received remuneration under an employment contract contributed to the Return to Employment Assistance (RWA). Thus, he is entitled to unemployment insurance under this employment contract. To learn more about the ARE, you can visit our dedicated card.
Be careful, if the manager also fulfills the conditions to benefit from the ITA, he will only receive the ARE. The two allocations are not cumulative.
When the head of a business that has been dissolved is close to retirement age, he can ask his pension organization for his rights.
If the director is indeed of retirement age, he must submit his application 4 to 6 months before the date of retirement to the pension insurance:
Pension Insurance: my rights, my steps, my retirement
National old-age insurance fund
Pour en savoir plus
When he encounters financial difficulties, he can benefit from a retirement assistance scheme (ADR.).
For more details on ADR., you can refer to the dedicated card.
The manager can also benefit from the “Help! : coordinated social security assistance for the self-employed", to obtain more information on his rights and procedures for his retirement:
Who can help me?
The public service accompanying companies
Do you have a project, a difficulty, a question of daily life?
Simple and free - you will be called back within 5 days by THE advisor who can help you.
Self-employed worker allowance (ITB)
Banque de France
National old-age insurance fund