A self-entrepreneur can decide to end his activity at any time and thus get out of the micro-social and micro-fiscal system. This process is relatively simple and quick.
The cessation of activity of a self-employed entrepreneur can be motivated by the transition to a commercial company or simply, the cessation of the activity of the micro-enterprise. In both cases, the contractor must follow a specific procedure. Discover the applicable procedures depending on the reason for the cessation of activity of a self-employed entrepreneur.
Do you want to end your self-employed activity? To be relieved of your periodic reporting obligations, you must first inform the Business Formalities Center (CFE) of this decision. You have two options for this:the declaration of cessation of activity online or the declaration by mail. Indeed, you can declare your cessation of activity directly online on the Guichet Entreprises website. This delisting request must be made within one month of the cessation of activity and will be final. You can also send your request by post to the competent CFE. You will then need to send a completed form, accompanied by proof of identity.
It is important to specify that the declaration of cessation of activity of a self-employed entrepreneur is completely free. However, you will have to pay your last social security contributions by sending your declaration of turnover within the applicable deadline. The last step is to complete your tax return n°2042 within 2 months of the request for cessation of activity. Regarding the corporate land contribution (CFE), you are not subject to it in the months following the cessation of your activity. You will therefore be able to apply for relief from the business tax service (SIE) during the year of cessation.
Be aware that if you do not take the steps to cease self-employment, your company will continue to exist in the eyes of the organizations. You will therefore have to fulfill your reporting obligations so as not to risk fixed penalties for the increase. Moreover, if your turnover is nil for 2 consecutive years, you risk having your status revoked.
The status of auto-entrepreneur can be interesting to start an activity but has limits in case of development. In this case, the entrepreneur may have an interest in switching to a sole proprietorship or a one-person company (EURL/SASU).
To switch to EURL or SASU, you must terminate the auto-entrepreneur activity by following the procedure presented above and then create a new company. As a reminder, it is not possible to combine the status of auto-entrepreneur with that of majority manager of SASU or EURL.
The temporary cessation of activity corresponds to a momentary cessation of the entrepreneur's activity while avoiding definitive radiation. The duration of the temporary cessation of activity is set at 1 year for sole proprietorships, renewable once for those exercising a commercial activity.
Concretely, to temporarily cease the activity of your micro-enterprise, you must contact the CFE in charge of your file. This process will lead to an amended registration in the Trade and Companies Register (RCS) or in the Trades Directory (RM) depending on the nature of your activity. The temporary cessation of activity has several advantages. Indeed, during this period, you will not have to declare your monthly or quarterly turnover or pay social security contributions. Nevertheless, the formalities related to the temporary cessation of activity are chargeable, it is necessary to count between 80 and 100 euros.
At the end of the period of cessation of activity, the entrepreneur has two options. He can reactivate his micro-enterprise via an amending registration with the competent CFE or definitively cease his activity via a deletion from the RCS or RM registers. In the absence of any action on his part, the micro-enterprise may be automatically struck off.
Since 1 st January 2018, the maximum annual turnover thresholds to benefit from micro-entrepreneur status have doubled. The threshold is set at 170,000 euros for the sale of goods, at 70,000 euros for the provision of services. If the thresholds are exceeded for two consecutive years, the entrepreneur is automatically deregistered from the micro-enterprise regime. In this case and without any particular action on his part, he becomes a sole proprietorship.
When creating your business as a self-employed person, INSEE assigns an APE code corresponding to the nature of your main activity. If you change activity, be aware that it will not be useful to proceed with the cessation of your self-employed activity to create a new company. Indeed, the CFE can modify your APE code on simple request.
The cessation of activity of a self-employed entrepreneur may occur in other situations and in particular in the absence of a tax return. Even if the entrepreneur is not taxable or if his income is low, he must complete his tax return. If no income is declared for 2 years, cessation of activity is presumed.
The cessation of activity is also essential in the event of the death of the company director. The rights to benefits will then be closed. The relatives of the entrepreneur or a third party must send a death certificate to the Social Security for auto-entrepreneurs in order to request the cancellation, to collect the remaining benefits, to request a survivor's pension and the payment of the death benefit.
You now know the different cases in which the cessation of activity of a self-employed entrepreneur can occur. Thus, whether you want to permanently stop your activity, develop the same activity in another form of company or even convert, it is essential to carry out the formalities of cessation of activity as a self-entrepreneur. Before taking these steps, however, remember to find out about the consequences of this cessation of professional activity.
