Temporary cessation of activity of the individual contractor

Verified 25 November 2025 - Entreprendre Public Service / Legal and Administrative Information Directorate (Prime Minister)

Temporary cessation of activity allows the activity to be suspended for a limited period. During this period of inactivity, the individual entrepreneur retains his registration in the National Register of companies (RNE) and continues to pay his tax and social payments.

To temporarily cease its activity, the individual contractor must not be in a situation of cessation of payments.

The individual contractor must declare the temporary cessation to the company formalities desk within 1 month from the decision to cease the activity.

Window of company formalities

When it has a secondary institutionHowever, the contractor must first close this secondary establishment before making a declaration of temporary cessation of activity.

The declaration of temporary cessation at the companies' formalities desk automatically entails the following consequences:

  • Amending registration in National Register of companies (RNE) and the Trade and businesses Register (RCS) in the event of commercial activity
  • Insertion in the Official Bulletin of Civil and Commercial Advertisements (Bodacc) so that third parties (e.g. suppliers or other business partners) can be informed.

Please note

It is not mandatory to announce the temporary cessation of activity in a support entitled to receive legal notices (Shal).

The duration of the temporary cessation shall be limited to 1 year.

However, where the individual contractor is engaged in a commercial activity, he or she may extend the temporary cessation for an additional year. The duration is therefore limited to 2 years for a commercial activity.

The individual entrepreneur carrying on a commercial activity must draw up annual accounts consisting of balance sheet, of income statement and the accounting annex at the close of theexercise.

If it belongs to the European classification of micro-companies, it may adopt a simplified presentation the balance sheet and the income statement and be exempted from drawing up a annex. When it has declared a temporary cessation of activity on the companies formalities window and that it does not employ an employee, it may be dispensed to draw up a balance sheet and a profit and loss account.

FYI  

This exemption ceases to apply in one of the following 2 cases:

  • Resumption of activity
  • Changes in the balance sheet structure (significant inflow or outflow of cash, endowment or reversal of provision for risks and expenses).

When a dormant business is a tenant of a commercial lease, it may retain the premises in which it operates. However, if the lease contract requires personal exploitation of the activity uninterrupted, the tenant business risks a termination of commercial lease or a refusal to renew the lease by the owner.

During the temporary cessation of activity, the individual contractor remains affiliated the social security scheme for the self-employed (TNS), i.e. the social security scheme for the self-employed. 

He continues to pay certain mandatory minimum social contributions (daily allowances, basic old-age pension insurance, invalidity-death) even if he does not declare income from work.

For more information on the social contributions and contributions of the trader or craftsman, you can refer to the CPSTI: titleContent on the minimum social security contributions.

FYI  

The exemption from social security contributions enjoyed by the individual entrepreneur in respect of Acre shall be maintained during the period of temporary cessation of activity.

An individual entrepreneur who declares zero turnover or who does not make a declaration of turnover or income for at least 2 consecutive calendar years may be automatically struck off. He is considered to no longer be engaged in a professional activity justifying his affiliation to the social security scheme for the self-employed. He is then informed by the director of the Urssaf that a measure to cancel his membership is being considered.

To oppose the cancelation, the entrepreneur must provide within 1 month proof of the continuation of the activity (declaration of activity income or turnover). If the individual contractor does not react, the director of the Urssaf may pronounce the removal from the register of the company which entails the automatic removal from the register RCS: titleContent (if the activity is commercial) and RNE.

Temporary cessation of activity has different tax consequences.

VAT

During the temporary cessation of activity, the individual contractor is exempted from VAT declaration and payment.

Taxation of profits

The individual entrepreneur is subject to income tax (IR) or business tax (IS) if he opts to be assimilated EURL.

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Income tax (IR)

Commercial and craft activities

The individual contractor is subject to IR in the Industrial and Commercial Benefits (BIC) category.

During the temporary cessation of activity, the customer must continue to declare his turnover (turnover) and indicate “nil” instead of the amount of turnover or revenue. This return is made at the time of the tax return on the 2nde working day after 1er May. For more information, refer to the fact sheet on Industrial and commercial profits (BIC): real tax regime.

Liberal activity

The self-employed individual entrepreneur is subject to income tax in the category of non-commercial profits (NCB).

During the temporary cessation of activity, the individual entrepreneur must continue to declare his turnover (turnover) and indicate the word “nil” instead of the amount of turnover or revenue. This return is made at the time of the tax return on the 2nde working day next to 1er May. For more information, refer to the fact sheet on non-commercial profits (NCBs): actual tax regime

Corporate tax (IS)

The individual entrepreneur who has opted to be subject to business tax (IS) must in particular submit an annual income statement within 3 months of the end of the financial year.

During the temporary cessation of activity, the individual entrepreneur shall continue to submit a declaration of result and shall declare his turnover (turnover) by indicating ‘nil’ instead of the amount of turnover or revenue.

For more information on the IS declaration, please refer to the fact sheet on business tax (IS): tax, declaration, payment

Company Property Assessment (CFE)

The individual contractor remains subject to the company property tax (CFE) during the 12-month period of inactivity.

In the event of commercial activity, the temporary cessation may be extended. Beyond 12 months, the company is exempt from CFE.

Please note

Companies with a turnover or revenue of less than or equal to €5,000 are exempt from CFE.

After a temporary cessation of activity (for a maximum of 2 years) the individual entrepreneur has 3 possibilities:

  • Either resume the activity: it is then necessary to reactivate the company by making an amending entry in the National Register of companies (RNE) with the company formalities window
  • Either permanently cease its activity: by carrying out tax and social procedures and declaring the cessation of activity at the companies' formalities desk. For more information, refer to cessation of activity of the contractor.
  • Either proceed with the sale of the company: by selling the business to a family member or to a person outside the company.

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