Guide
Business dormancy (temporary suspension)
We register a temporary suspension of activity with APR, settle the accompanying tax obligations toward the Tax Administration, advise you on contributions during dormancy, and later register the resumption of work for you.
Dormancy, officially a temporary suspension of activity, is the option for an entrepreneur to pause the business for a set period without closing the shop and without losing the PIB and the registration. During dormancy the entrepreneur stays in the Business Registers Agency (APR) but does not carry out activity and generates no turnover, so the current tax and contribution obligations are suspended for that period. This solution makes sense when you temporarily have no work, when you go on a longer trip or break, or when you are waiting for a better moment to resume and are not sure you want to close for good. It is important to understand that dormancy applies to entrepreneurs, while a company such as a d.o.o does not have this option.
What you should know
- Dormancy is available to entrepreneurs (both flat-rate ones and those keeping business books), while a company such as a d.o.o cannot enter dormancy and its obligations continue until liquidation is carried out.
- During dormancy the entrepreneur remains registered with APR, keeps the company number and PIB and does not lose the business history, so they later resume work without forming the business again.
- While dormant the entrepreneur carries out no activity, generates no turnover and issues no invoices, so for that period the current obligations for personal income tax from self-employment and for mandatory social insurance contributions are suspended too.
- Contributions can, by choice, still be paid: if you do not pay them, your pension service is interrupted and you lose the right to health insurance through the business, whereas if you want to stay insured you pay contributions on the prescribed base.
- Dormancy may last indefinitely and the resumption of activity is registered with APR at any time through an application, after which the business operates again, including the obligation of fiscalization and issuing fiscal receipts.
- The difference from deletion is fundamental: dormancy is a temporary and reversible state in which the business still exists, while deletion is the permanent removal of the entrepreneur from the register and requires that all obligations toward the Tax Administration and the local tax administration be settled.
How we handle it
- 01 Assessing whether dormancy is the right solution We discuss the reason for the pause and check whether a temporary suspension or a permanent deletion of the business suits you better, so you do not pay more than necessary.
- 02 Registering the suspension with APR We complete the registration application for a change of data with the addendum for suspension and resumption of activity and file it with APR, with the prescribed fee and the chosen date from which dormancy begins.
- 03 Settling obligations toward the Tax Administration Through the single-window system APR forwards the suspension data to the Tax Administration, and for entrepreneurs who keep books we file the tax return and tax balance for the period up to the suspension date within the prescribed deadline, so that the charging of tax and contributions stops.
- 04 Advice on contributions and insurance We explain the consequences for pension service and health insurance and, if you wish, arrange to keep paying contributions on the prescribed base so you remain insured.
- 05 Registering the resumption of work When you decide to return to work, we file the application for resumption of activity with APR and the business starts operating again, usually within a day or two.
- 06 Restarting the bookkeeping On resumption we align the tax records, bring back the obligation of fiscalization and issuing receipts, and continue the regular keeping of your books.
Company formation
We register your company with APR and handle all tax and banking obligations.
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