Suspension of the limited liability company – specifics

The suspension of the company’s business activity may last for a maximum of 1 to 24 months. The option of suspending operations may be used provided that the company does not employ employees on the date of submission of the application for suspension. During this period, the company is required to settle obligations arising before the date of suspension.

If the entrepreneur employs any person under the employment relationship, it is not possible for him to suspend his activities. However, if the entrepreneur cooperates with persons under a different legal relationship (based on the mandate contract, contract for specific work), there are no obstacles to suspend it. During the suspension period, the entrepreneur may not conduct business activities.

During the suspension, the entrepreneur has the right and obligation to:

• to perform any activities necessary to maintain or secure a source of income

• to collect receivables and pay liabilities arising before the date of suspension of economic activity

• for sale of own fixed assets and equipment

• to generate financial revenues, also from activities conducted before the suspension of operations and to settle liabilities to contractors that arose before the suspension

• participation in court, tax and administrative proceedings related to activities carried out before suspension

In addition, the company that suspended operations is exempt from the obligation to submit VAT returns for the tax periods to which the suspension relates.

The exemption does not apply to:

• taxable persons registered as EU VAT taxpayers

• taxpayers making intra-Community acquisitions of goods

• taxpayers importing services or purchasing goods

• settlement periods in which the suspension of activities did not concern the full settlement period