The sole proprietor is not working, but will have to pay: entrepreneurs warned about an important nuance
In Ukraine, some sole proprietors stop doing business but do not submit documents to terminate entrepreneurial activity, and the sole proprietor formally continues to exist for years.
The Department of State Registration of the Executive Committee of the Kremenchuk City Council named the main reasons for closing a sole proprietorship:
- After closure, it is not necessary to submit "zero" declarations, missing which threatens fines.
- Cancellation of mandatory payments (single social contribution, single tax, military tax), which are charged regardless of activity.
- "Dormant" sole proprietors who do not submit reports risk receiving fines and penalties.
Today, terminating a sole proprietorship can be done quite quickly through the "Diia" Portal or through a state registrar.
Termination of entrepreneurial activity is carried out regardless of the sole proprietor's place of residence within Ukraine.
The state registrar is obliged to enter information into the Unified State Register within 24 hours after receiving documents submitted for the registration of the termination of the sole proprietorship. This information is also automatically sent by the register to the State Tax Service, statistical authorities, and the Pension Fund.
Steps on the "Diia" Portal to terminate activity:
- Generate an electronic signature (qualified electronic signature).
- Register or log in (if already registered) to your personal account on the "Diia" Portal using the electronic signature.
- Fill out the online form to receive the service. All important information is already stored in the system – you only need to verify its accuracy and sign the application using your electronic signature.
- A notification about the closure of the sole proprietorship will appear in your personal account and will be sent by email.
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