Suspension of business activity, i.e. temporary cessation of business activity, determines Article 22 Laws Business Law Journal of Laws of 2021, item 162 t.j. of day 26 January 2021. Entrepreneurs are increasingly exercising the powers conferred by the above-mentioned provision of business law, inter alia in order to avoid many costs and obligations.
Alert to the National Court Register on suspension
The company may, for any reason, for example, in situations of temporary problems with running the company or not obtaining the income it expected, decide to suspend business activity. The Management Board of the limited liability company shall adopt a resolution on the suspension of the company's activities.
Suspension may take place for a period not less than 30 min and no longer than 24 months.
The period of suspension of business activities shall begin from the date indicated in the application to the National Court Register for the entry of information on suspension, not earlier than the date of application and shall continue until the date specified in the request for entry of information on renewal.
As per content Article 20d Act of 20 August 1997 o National Court Register, failure to request entry of information on the resumption of business activities before the expiry of the period 24 months from the date of suspension of business activity, an ex officio coercive procedure is initiated by the KRS to enter information on resumption of business activity on the day following the expiry of the period 24 months from the date of suspension of business activity by automatically placing it in the register of economic operators.
Conditions to be met
In order for the company to be able to suspend its business activity, it must fulfil the following conditions, unless additional conditions are laid down in the articles of association.
The Polish limited liability company., i.e., may suspend business unless it employs employees for employment contracts, on the basis of appointment, selection, appointment, cooperative employment agreement.
A company which only employs workers on maternity leave, maternity leave, parental leave or parental leave which does not combine parental leave with the work of the employer will also benefit from this right. However, there is no need to terminate civil law contracts (orders, works).
In addition to the requirement relating to the non-employment of workers or workers with the status indicated above, the legislature does not provide for other conditions, whether specific or subjective, on which the right to suspend the performance of the business would depend.
It is also worth noting that the Polish limited liability company. (as well as other entrepreneurs) may suspend and resume the pursuit of economic activity on several occasions, as the law does not provide for restrictions in this respect.
What activities can be performed during the suspension period
The Company may not undertake any activities related to the business activity during the period of suspension, except for activities aimed at preserving or securing the source of income. This means that a company listed in the KRS during the period of suspension of activities may only undertake such activities as will enable it to return to its activities.
During the period of suspension of business activity, the company with the o.o.:
- 1) may perform any activity necessary to preserve or secure the source of revenue, including termination of contracts concluded previously;
- 2) may accept receivables and be obliged to settle obligations arising before the date of suspension of business activities;
- 3) may dispose of its own fixed assets and equipment;
- 4) have the right or obligation to participate in judicial, tax and administrative proceedings relating to economic activities carried out before the date of suspension of business activities;
- 5) perform any obligations prescribed by law;
- 6) may also generate financial revenue from activities carried out prior to the date of suspension of business activities;
- 7) may be inspected under the conditions provided for by economic operators.
In order to notify the suspension of the company's activities with o.o. to the KRS, the electronic application in the Portal of Court Registers should be completed, accompanied by a resolution of the board of directors of the company on suspension and a statement of the board on the non-employment of employees.
Information on suspension or resumption of economic activity shall be included in section 6 the register of entrepreneurs, but it is not published in the Judicial and Economic Monitor. The application to the KRS to suspend the company's activities shall not be subject to a judicial fee.