Closure of FOP

The services of an accountant for the closure of a FOP is a critical stage in the life cycle of a FOP (individual entrepreneur) who has decided to terminate its activities. The procedure for closing a sole proprietorship involves a number of mandatory actions, including accounting ones. In this article, we will consider the features of the provision of accountant services when closing a sole proprietorship.

In what ways can FOP be closed and what actions should be taken as soon as possible?

It is worth noting that a FOP can be closed in two ways: independently through action or by contacting a law firm that has a professional accountant on its staff. In any case, accounting procedures are an integral part of the FOP closing process.

One of the first things to do when closing a FOP is to stop doing business. The entrepreneur must stop entering into new contracts, sales and services. At the same time, it should be taken into account that, in accordance with the legislation, a FOP cannot be closed if it has debts to the state budget, pension fund, social insurance fund, etc. Therefore, before the start of the procedure for closing the sole proprietorship, it is necessary to pay off all debts or conclude an installment plan for paying debts.

What is the role of the accountant in the event of the closure of the sole proprietorship?

Accounting services in closing a FOP include a number of important aspects that must be considered:

1. Preparation of financial statements. The accountant makes the final calculation of the financial condition of the individual entrepreneur. He prepares the balance sheet, income statement and cash flow statement by the time the business closes.
2. Submission of reports to the tax authorities and payment of taxes. The accountant prepares and submits to the relevant tax authorities reporting documents confirming the fact of the closure of the sole proprietorship, as well as documents necessary for paying taxes. These can be reports on tax liabilities, tax invoices and other reporting documents.
3. Submission of a declaration of property and income. The accountant prepares and submits a declaration of the property status and income of the FOP for the entire period of its activity until the closing date. This includes a statement of income and expenses, information on assets and liabilities.
4. Preparation of documents for closing bank accounts. The accountant prepares the necessary documents for closing bank accounts, including applications and other documents necessary for their closing.
5. Closing obligations to suppliers and customers. The accountant communicates with suppliers and clients of sole proprietorships to resolve issues related to the closure of the enterprise (prepares documents for closing obligations, including repayment of debts or conclusion of installments).
6. Closing social and health insurance. The accountant takes the necessary actions to close the social and health insurance of the FOP. He submits relevant applications and documents to the relevant insurance authorities in order to terminate insurance premiums.

The services of an accountant during the closing of a FOP are an important factor in ensuring the correct and uninterrupted closing of a FOP. They help the entrepreneur avoid mistakes, ensure that all necessary procedures are followed, and reduce the risk of financial or legal problems.

What documents are needed to close a sole proprietorship?

• Extract from the Unified State Register of legal entities and individuals-entrepreneurs, which confirms the registration of sole proprietorship.
• A bank-certified copy of an extract from tax deductions containing information on the payment of taxes before the closing of the sole proprietorship.
• Reporting documentation, including annual financial statements and other reports.
• The book of income is filled, which reflects all the income received by the enterprise during its activities.
• Certificate of closing a bank account.
• Copy of passport and FOP identification number.
• Documents confirming the financial transactions and obligations of the sole proprietor during its activity, for the entire period of work.

If you need the services of a professional accountant, please contact the law firm Prikhodko and Partners. Our firm provides a full range of accounting services for the closing of sole proprietorships. Qualified accountants of the company have extensive experience in this area and know the Ukrainian legislation on the procedures for closing an enterprise, therefore they are ready to provide you with professional support at every stage of closing a sole proprietorship. Don’t hesitate and get in touch!