Guide · Company

How to close a sole proprietorship - step by step

Updated: · 8 min read · By Agnieszka Saladra, Certified Accountant

Formally closing a business is not just a single application to CEIDG (the Central Register and Information on Economic Activity) - it also means deregistering from ZUS (Social Insurance Institution), preparing a liquidation inventory, settling VAT and making a final PIT (personal income tax) settlement, all in parallel. In this guide we walk you through the entire process step by step, with the current deadlines for 2026. As an online accounting office, we handle these formalities every day so that nothing slips through.

In short

  • You file the application to be removed from CEIDG (form CEIDG-1) within 7 days of the date you actually cease activity - online, at an office or by post, free of charge.
  • You have 7 days from ceasing activity to deregister from ZUS on form ZUS ZWUA (and family members on ZUS ZCNA).
  • An active VAT taxpayer files a VAT-Z notification within 7 days and prepares a liquidation inventory (physical stocktake) subject to VAT under Article 14 of the VAT Act.
  • On the liquidation date you also prepare a closing inventory and a list of assets for PIT purposes - inventory differences affect the final tax advance.
  • You keep company documents, including inventories and the list of assets, for at least 5 years.
  • Closing is permanent and irreversible - if the break is meant to be temporary, the alternative is suspending the business without liquidating it.

Closing vs. suspending - which path to choose

Before you start the liquidation, it is worth making sure this is genuinely the right path in your situation. Closing the business means removal from CEIDG and is permanent and irreversible - a liquidated company cannot be 'reactivated', and returning to business requires registering again from scratch.

If the break is temporary in nature, the alternative is suspending the business. During suspension you pay no social or health contributions and file no returns, while the business remains in the register and you can resume it at any time with a single application to CEIDG.

  • Closing - removal from CEIDG, full liquidation, inventories and final settlements; returning means a new registration.
  • Suspension - no contributions and no returns, without liquidation; resumption via an application to CEIDG (notification to ZUS happens automatically).
  • Suspension in CEIDG cannot last less than 30 days and does not require a liquidation inventory for VAT - the rule on a physical stocktake after 10 months without taxable activities (Article 14(3) of the VAT Act) does not apply to entrepreneurs who have formally suspended their business.

The choice depends on your situation and plans. We do not point to one option - we present the consequences of both, and you make the decision yourself, ideally after a conversation with an accountant.

Step 1: Preparation and setting the end date

Liquidation is a process that is best planned in advance. Before you enter the date of ceasing activity, put your current affairs in order - they determine how many settlements need to be closed.

  • End or terminate contracts with contractors, suppliers and any employees.
  • Issue outstanding invoices and collect receivables, settle your liabilities.
  • Check the state of your fixed assets and equipment as well as goods in stock - these go into the inventory.
  • Prepare the means to sign applications online: trusted profile (profil zaufany), e-ID (e-dowod) or the mObywatel app.

The date you actually cease activity is the reference point for almost all deadlines - from it you count the 7 days for the CEIDG-1 application, deregistration from ZUS and the VAT-Z notification. You prepare the inventories as of that same day, which is why it is worth setting it deliberately.

Step 2: Removal from CEIDG (CEIDG-1 application)

Formally closing the company starts with the application to remove the entry from CEIDG. You file it on form CEIDG-1, selecting the 'application to remove the entry' option and giving the date you cease carrying out economic activity.

How and when to file the application

  • Online - via the biznes.gov.pl portal, signing the application with a trusted profile, e-ID or in the mObywatel app.
  • In person - at any city or municipal office.
  • By post - by registered letter with a notarised signature.
  • Deadline - file the application within 7 days of the date you cease activity; the service is free.

Removal takes effect when the data is posted in CEIDG, no later than the next business day after a correct application is received. Thanks to the one-stop-shop principle, CEIDG forwards the information about the removal to the tax office, GUS (Central Statistical Office) and ZUS or KRUS (Agricultural Social Insurance Fund) - you do not have to notify these institutions separately about the closure itself.

Step 3: Deregistration from ZUS (ZWUA and ZCNA)

Although CEIDG informs ZUS about the removal of the company, deregistration from insurance itself requires a separate form. As the contribution payer, you deregister yourself from social and health insurance on form ZUS ZWUA, within 7 days of the date you cease activity.

  • ZUS ZWUA - deregistration of you as an insured person (with a deregistration reason code).
  • ZUS ZCNA - deregistration of previously reported family members from health insurance.
  • File the last ZUS settlement documents (e.g. DRA) for the month in which the business was still operating.

If you employed staff, you also deregister them (ZUS ZWUA) and the family members they reported. It is worth making sure the deregistration dates are consistent with the date you cease activity entered in CEIDG.

Step 4: Liquidation inventory and VAT settlement

If you were an active VAT taxpayer, as of the date you cease activity you prepare a liquidation inventory, that is, a physical stocktake for VAT purposes. This obligation arises from Article 14 of the VAT Act and applies to natural persons and partnerships - companies with legal personality do not prepare it.

The stocktake covers goods, materials, as well as fixed assets and equipment on the acquisition of which you were entitled to deduct VAT. You value them at the purchase price (or cost of manufacture) as of the date of the stocktake, and you report the resulting VAT due in your final JPK_V7 file (Standard Audit File for VAT).

  • Prepare the physical stocktake as of the date you cease activity and calculate the VAT due on the remaining items.
  • File the VAT-Z notification (cessation of taxable activities) within 7 days of liquidation.
  • Report the inventory and any VAT adjustment on fixed assets in the final JPK_V7 for the period in which the liquidation took place.
  • Information about the physical stocktake (a form from the VAT-S1 group) can be submitted via the e-Tax Office (e-Urzad Skarbowy).

For more expensive fixed assets there may be an adjustment of the deducted VAT if liquidation occurs before the adjustment period ends (5 years for tangible fixed assets above PLN 15,000, 10 years for real estate). The adjustment is recognised on a one-off basis in the final return. This is a moment where an accountant's support can be especially helpful.

Step 5: PIT settlement - closing inventory and list of assets

Regardless of VAT, on the liquidation date you prepare two documents for income tax purposes: a closing inventory (physical stocktake for PIT) and a list of assets remaining in the company.

  • Closing inventory - covers commercial goods, materials, semi-finished products, work in progress, finished goods, defects and waste; the difference between the closing and opening inventory affects income.
  • List of assets - includes, among other things, the amount spent on acquiring the asset and the amount charged to costs; it will be useful if you sell the asset after liquidation.
  • On the liquidation date you summarise the entries in the KPiR (the tax revenue and expense ledger, kept electronically from 2026 and sent as a JPK file - from 2026 by taxpayers filing JPK_VAT monthly, and from 2027 by the rest) and calculate the final PIT advance.

You pay the final income tax advance by the standard deadline, that is, by the 20th day of the month following the month in which you closed the company. The final settlement takes place in the annual PIT return for the year in which you liquidated the business.

Step 6: Documents after closing - what to keep and for how long

Closing the company does not end your documentation obligations. After liquidation you must still keep your tax and accounting records, because the authorities may audit them within the limitation period for liabilities.

  • As a rule, you keep documents (KPiR, invoices, inventories, list of assets, ZUS documents) for at least 5 years, counting from the end of the year in which the tax payment deadline fell.
  • Employee records are subject to separate, longer retention periods.
  • Keep confirmations of filing the CEIDG-1, ZUS ZWUA and VAT-Z applications as well as the final JPK files and returns.

Selling assets that remained in the company after liquidation may give rise to a tax obligation for some time after closure - which is why it is worth keeping the list of assets close at hand.

How Luno-Group helps close a company

At Luno-Group we provide online accounting, but behind the settlements stand experienced accountants, not the app alone. With liquidation this matters, because there are many deadlines and documents, and most of them run in parallel.

We help close the entire process: we keep track of the deadlines for CEIDG-1, ZUS ZWUA and VAT-Z, prepare the inventories for VAT and PIT, draw up the list of assets and the final JPK files and returns. We calculate and present the consequences of each step - the decision on when and how to close the company you make yourself, with full information at hand.

Frequently asked questions

By when must I file the application to be removed from CEIDG?+

You file the CEIDG-1 application to remove the entry within 7 days of the date you actually cease carrying out economic activity. You can do this online via biznes.gov.pl, in person at an office or by post. Removal takes effect at the latest on the next business day after a correct application is received.

After closing the company, do I have to deregister from ZUS separately?+

Yes. Even though CEIDG informs ZUS about the removal of the company, you file the deregistration from insurance itself on form ZUS ZWUA within 7 days of ceasing activity. You additionally deregister previously reported family members on form ZUS ZCNA.

What is a liquidation inventory and who does it apply to?+

A liquidation inventory is a physical stocktake prepared as of the date you cease activity. For VAT purposes (Article 14 of the VAT Act) it covers goods and assets on which a deduction was available - it is prepared by natural persons and partnerships. A separate closing inventory is also prepared for PIT purposes.

What VAT returns do I file when closing a business?+

An active VAT taxpayer files the VAT-Z notification on the cessation of taxable activities within 7 days of liquidation. The VAT due from the liquidation inventory and any VAT adjustment on fixed assets is reported in the final JPK_V7 file for the period in which the liquidation took place.

How long must I keep documents after closing the company?+

As a rule, you keep tax and accounting records - including inventories and the list of assets - for at least 5 years, counting from the end of the year in which the tax payment deadline fell. Employee records are subject to separate, longer periods.

How does closing differ from suspending a business?+

Closing is removal from CEIDG - it is permanent and irreversible, requires inventories and final settlements, and returning means a new registration. Suspension is temporary: you pay no contributions or returns, the company stays in the register, and you resume the business with an application to CEIDG. The choice depends on your situation.