Cessation of business
Definitive or temporary cessation of a company's operations, which triggers registry formalities and a publication in the BODACC.
Definition
Cessation of activity is the fact, for a business, of stopping its operations. It may be permanent, which leads to striking off, or temporary, and a resumption sometimes follows after an interruption.
The word covers two different realities depending on the form of the business. A sole proprietorship simply declares the cessation of its activity, which brings its registration to an end. A company, however, cannot stop in that way: dissolution must be decided, liquidation carried out, and then striking off applied for. For a company, cessation of activity is an economic fact, not a formality in itself.
The date of cessation has precise consequences. It marks the end of the reporting obligations linked to the operations, it serves as the starting point for certain tax and social security filings, and it appears in the entries in the register. An inaccurate date can create complications for years, particularly where the authorities consider that the activity continued.
Cessation is also a visible economic signal. It appears in the notices published in the BODACC, and it matters to partners who need to know whether their counterparty is still trading, or whether its registration has been closed.
What follows a cessation
The declarations to be made
The cessation of activity is declared to the register, with a date. This declaration is accompanied by tax and social obligations: declarations of results, local tax, contributions, the fate of the employee or employees. Each has its own timetable, and forgetting one of them often outlives the closure.
The resulting removal from the register
For a sole proprietorship, the declaration of cessation is transmitted to the register and the registration is closed. For a company, cessation does not entail removal from the register: it is necessary to go through dissolution and liquidation, then request the final registration.
Starting up again after a cessation
An entrepreneur who ceases their activity may create a new one, possibly in a different legal form. Cessation does not entail any prohibition. However, it leaves obligations to be settled, particularly tax obligations, which a new activity does not make disappear.
Frequently asked questions
Must a cessation of activity be published in the BODACC?
For a sole proprietorship, the cessation declared to the register gives rise to an entry, which is included in the official publications. For a company, it is the dissolution and the closing of the liquidation that are published, as well as the resulting striking off.
Can one cease one's activity and then resume it?
Yes, provided the corresponding formalities are carried out again. A prolonged interruption may lead to an automatic striking off if the business no longer shows any sign of activity. Resuming afterwards requires a new registration.
What happens to a company that ceases its activity without declaring anything?
It remains registered, with its obligations. Accounts continue to be expected, as do tax returns. This situation frequently leads to an automatic striking off initiated by the court registry, with the consequences that this entails for the director.