LIQUIDATION OF AN ENTREPRENEUR

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Yasinskiy Yevhen

Head of tax law practice

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LIQUIDATION OF AN ENTREPRENEUR

Reading time: 3 min.

Today, in accordance with the legislation of Ukraine, persons who intend to start commercial activities must register an enterprise in the form of a company, an enterprise or register as an individual entrepreneur (hereinafter referred to as a sole proprietorship).

A natural person-entrepreneur belongs to the category of one of the most common forms of economic activity.

The Individual Entreprenuer status provides an opportunity for a certain person to start carrying out commercial activities aimed at the sale of products, performance of work or provision of valuable services without registration of a legal entity, which by its design is more demanding of certain legal and financial details.

However, quite often citizens of Ukraine, who have registered as an individual entrepreneur, face certain economic or financial problems during the implementation of commercial activities, which lead to the need to start the procedure for terminating the status of an individual entrepreneur.

If a natural person-entrepreneur has decided to end his activity, he must apply to the state registrar. The Individual Entreprenuer retains the status of an entrepreneur from the date of entry into the Unified State Register of Legal Entities, Individual Entrepreneurs and Publicly Formed Entities.

The form of the specified application (form 1), which must be submitted to the state registrar in order to terminate the status of the Individual Entreprenuer, is approved by the Order of the Ministry of Justice of Ukraine № 3268/5 dated November 18, 2016.

Documents can be submitted to the state registrar in paper or electronic form.

If the documents are submitted in paper form, you must have an identity document with you.

Please note that the state registrar is prohibited from requiring additional documents for registration actions not provided for in Part 4 of Article 18 of the Law "On State Registration of Legal Entities, Individuals - Entrepreneurs and Public Organizations".

In electronic form, the application for closing the Individual Entreprenuer is submitted through the citizen's office on the Diia.

According to Art. 26 of the Law of Ukraine "On State Registration of Legal Entities, Individuals-Entrepreneurs and Publicly Formed Persons", the state registrar within 24 hours after receiving the documents submitted for registration of the termination of entrepreneurial activity of the Individual Entreprenuer, is obliged to enter information into the Unified State Register of Legal Entities, Individuals - formed by entrepreneurs and public

In the absence of grounds for suspending consideration of documents and refusal of state registration, the state registrar makes an entry in the EGR about the termination of business activity and publishes the results of the registration action on the portal of electronic services.

On the day of entry into the Unified State Register, the state registrar transfers the information on the termination of the entrepreneurial status of the Individual Entreprenuer to the State Tax Service, the State Statistics Service and the Pension Fund.

The date of deregistration of the Individual Entreprenuer is considered to be the date of receipt of data on the state registration of the termination of its business activity.

The Individual Entreprenuer will be deregistered in the Pension Fund as a payer of the single social contribution, only if it is not in arrears for the payment of the contribution, after carrying out checks provided for by the legislation.

In order to complete the procedure of termination of the Individual Entreprenuer, it is necessary to submit a liquidation report and close bank accounts.

The legal company "Prikhodko&Partners" provides a full range of services related to the termination of the activity of an individual entrepreneur.

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Head of tax law practice

An expert in the practice of tax law, specializes in the protection of rights in court, corporate law.

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