Head of International Corporate Law and Fintech Practice
Expert in fintech, crypto, and international corporate law with over 20 years of experience. Specializes in crypto licensing (VASP/CASP), iGaming business support, and international structuring, asset protection, and OSINT analytics for risk assessment and due diligence.
Close FOP
Closing a sole proprietorship
When a person plans to start his own business, he chooses how to properly legalize his activity. Some create a legal entity, while others register as self-employed, ie as individual entrepreneurs.
Subsequently, some registered entrepreneurs want to cease their activities. The reasons for the liquidation of private in Kyiv individuals and in Ukraine are different. For some it is not a desire to engage in the activities he started, others can not withstand the tax pressure. But they are all united by a common goal of how to eliminate private individuals in Ukraine.
After all, if you analyze the statistics, thousands of business entities cease their activities only in Kiev.
It is worth noting that even if a person-entrepreneur does not carry out its activities and does not make a profit, it still has to pay taxes and mandatory payments. Some don’t know it and think if I don’t work then I don’t have to pay anything. Such self-confidence can be costly in the future.
For example, a sole proprietorship decided to terminate its activities, notified the tax authorities, but information on the termination of activities was not entered into the Unified State Register. After some time, the tax authorities received a notice-request to pay the debt-arrears with a huge amount. That is, for, that the person didn’t bring to the end of procedure of the termination of FOP charged tax payments and sanctions.
What should I do if I have decided to liquidate a private individual?
Seek the help of a specialist, preferably a lawyer or attorney specializing in assistance in closing the SPD. When you open the Internet, you can see many ads that offer help in closing the SPD. But you need to choose not at a lower price in the closure of the business entity, but by rating and feedback from customers who have already used these services.
Provide available documents to obtain full and comprehensive advice on the liquidation of the business entity. This means that in order to obtain initial consultation with a lawyer, all documents related to the activities of a private individual must be provided. This will help in obtaining full and comprehensive advice on closing the SPD.
Entrust the case for closing the SPD in Kiev to a professional and get the expected result.
Today, many so-called “sleeping” business entities have thought about the fact that it is necessary to terminate their activities officially and confirm this in writing.
What documents can help lawyers prepare when closing an SPD?
- Statement to the state registrar that the business entity wishes to terminate it. Such an application can be submitted to any state registrar, regardless of where the private individual is registered.
- Preparation and submission of liquidation reports to the authorities exercise control. The deadline for submitting such reports depends on which tax system the business entity is in – simplified or general.
- Preparation and submission of a report on the Single Social Contribution within 30 days from the date of termination.
- Assistance in payment of all settlements and payments. It should be noted that the single tax and the single social contribution are paid for the entire month in which the private individual applied to the state registrar for termination of activity.
- Assistance in deregistration in the supervisory authorities and obtaining a statement of cash flows on accounts.
- Obtaining an extract from the State Register oneself- termination of employment. It should also be taken into account that the sole proprietorship is considered terminated from the moment of entering the information into the USR.
From the given list it is visible that independent process of closing of FOP is not fast. Those who want to save their time apply for services to close business entities in specialized firms. It is usually easier to close an SPD when there are no employees. But if there are employees, the procedure of liquidation of FOP is longer and more troublesome. Because it is necessary to dismiss such employees, and only then carry out the liquidation procedure.
It should be remembered that in order not to violate labor laws, employees must be notified of future dismissal no later than two months before the dismissal. Dismissal must be carried out under paragraph 1 of Art. 40 of the Labor Code of Ukraine.
Do not forget that the employee must sign the dismissal order on the day of dismissal and receive a copy of the order, all payments that belonged to the employee and the employment record book.
Territoriality of the closure of a sole proprietorship
As mentioned above, the application for termination of a sole proprietorship has no territorial jurisdiction, ie the SPDliquidated can be not only in Kyiv, but also in any other part of Ukraine. The company’s specialists help to close the business entity in Kyiv and other cities.
Cost of closing a sole proprietorship in Kyiv
Regarding the price segment, it should be noted that the closingproprietorship in Kyiv may differ from the price of a sole closing price of a business entity elsewhere. After all, the formation of prices is influenced by many factors. From the tax system and before there are employees or not.
An individual approach is applied to each business entity and how much it costs to close the SPD in Kyiv will depend after the initial consultation and clarification of all details. In this case, it is not so much the price that is important as the desired result.
It is also worth remembering that having terminated the activity of a sole proprietorship, it is necessary to settle all obligations, including rent and other payments. Because losing the status of a private individual does not mean that you do not sue as an ordinary individual. After all, according to the current legislation, a sole proprietor is liable for obligations with all his available property. We should also not forget that if there are any unresolved issues with contractors, then their decision must be made before the liquidation of the private individual , later it will be more difficult.
Advantages of applying to law firms for assistance in the liquidation of a sole proprietorship
- Qualitative legal assistance and legal support for the beginning of liquidation and for entering information into the USR.
- Professional advice from specialists with many years of practical experience in the elimination of self-employment.
- Reasonable and adequate price for services provided.
- Save time and confidence in the result.
If we analyze the statistics of applications for legal assistance in the liquidation of business entities, most still use such services. Because they do not have enough time and skills to deal with these issues.
For example, a person decided toon his own close the SPD. Instead of the help of a lawyer, the person used the Internet. It seems that she did everything as it was written, but a few years later she received a notification from the tax authority about the debt. That is, at independent liquidation of FOP all nuances were not considered, in this connection the specified debt arose. Usually in this situation it is not possible without the help of specialists, but this is an example of the fact that it is not always possible to solve the issue of on your own without the help of specialists closing the SPD.
It is worth noting that with the development of digital technologies, close the SPD you can online, but to do it properly use the help. First of all, you need to have an electronic digital signature. It is possible to close FOP through the application “Action” for this purpose it is necessary to fill in the application for termination and to fasten it with the electronic digital signature. But we must not forget that information on the termination of self-employment can be checked through the Unified State Register of Legal Entities and Individual Entrepreneurs. To do this, enter the registration number of the taxpayer’s account card in the search. If the status of the business entity “Terminated” is determined, it means that the sole proprietorship is closed.
So, if you decide to carry out the procedure of liquidation of a business entity, seek the help of professionals, because timely treatment is a guarantee of confidence in obtaining the desired result.
Calculate the cost of services
1 question
As an individual entrepreneur, do you owe debts to creditors or the state?
2 question
As an individual entrepreneur, do you have legal or criminal proceedings?
3 question
Are you a natural person entrepreneur registered in the city of Kyiv or the Kyiv region?
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