Termination of activity of the individual contractor (voluntary closure)

Verified 21 February 2026 - Entreprendre Service Public / (Prime Minister)

In order to permanently cease its activity, the individual entrepreneur must make a declaration of cessation of activity. He must also take several tax and social measures to close his company. Once these steps have been taken, the company is removed from the various registers and no longer exists legally.

Within a period of 30 days following the cessation of the company's activity, the individual contractor makes a declaration of cessation of activity on the site of the company formalities window :

Window of company formalities

In the event of cessation of activity, professional and personal assets of the individual entrepreneur are brought together in a single estate. The creditors may demand the settlement of their claims on all the contractor's assets.

Once the declaration of cessation of activity has been made, the individual contractor must make the following final declarations:

Declaration of result

In a 60 days following the date of cessation of activity, the entrepreneur must file online a final income tax return or a return complementary to the tax return.

The approach depends on the tax system:

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Micro-company regime

To benefit from the micro-company tax system on 1er in january 2026, the following turnover thresholds must not be exceeded: 

  • For the BIC microphone:  €203,100
  • For the BNC microphone: €83,600

To benefit from the micro-company tax system on 1er in january 2026, the following turnover thresholds must not be exceeded: 

  • For the BIC microphone:  €203,100
  • For the BNC microphone: €83,600

In the 60 days following the date of cessation of the activity, the contractor must file a tax return and a Supplementary Declaration No 2042-C PRO . It must carry forward the turnover or revenue realized from 1er January until the termination date.

The declaration must be filed on the particular space of the site impots.gouv.fr:

Taxes: access your Public Finance area

The amount of tax that may be claimed at the time of the cessation of activity comes next deductible income tax calculated on all income received during the year.

Actual tax regime

Income tax regime applicable either to companies whose turnover exceeds the thresholds of the micro-tax regime, or to those opting for its application. In the case of industrial and commercial profits (BIC) or agricultural profits (BA), the actual system can be simplified or normal. In the case of non-commercial profits (BNC), there is only the actual system of controlled reporting. A real system is more restrictive than a micro-tax system (accounting obligations, declarations...) but allows for example to deduct more expenses from taxable income (actual amount of expenses and not flat rate).

Income tax regime applicable either to companies whose turnover exceeds the thresholds of the micro-tax regime, or to those opting for its application. In the case of industrial and commercial profits (BIC) or agricultural profits (BA), the actual system can be simplified or normal. In the case of non-commercial profits (BNC), there is only the actual system of controlled reporting. A real system is more restrictive than a micro-tax system (accounting obligations, declarations...) but allows for example to deduct more expenses from taxable income (actual amount of expenses and not flat rate).

The contractor must carry out a last statement of results.

  • When the entrepreneur makes industrial and commercial profits (BIC): this is declaration n°2031-SD
  • when the entrepreneur makes non-commercial profits (BNC): this is declaration n°2035-SD

This declaration must be made in such a way that dematerialized (sending paper forms is no longer possible):

  • Either by a manual online entry forms (EFI mode). The company completes them herself, connecting to her professional space impots.gouv.fr :

Online tax account for professionals (EFI mode)

  • Either by going through a software of special exchange (EDI mode). In this case, the company or more generally its representative (for example a public accountant) enters all the information required and then transmits it to the administration.
  • Either through the Portailpro account

Business account portailpro.gouv

FYI  

The tax administration makes available in case of industrial and commercial profits (BIC) as an indication a template of declaration no 2031 SD. In the case of non-commercial profits (BNC), it also provides a template for Declaration No 2035 SD.

TVA statements

If the activity of the individual contractor is subject to TVA, it must submit a TVA statement online. Reporting rules depend on the TVA tax system: simplified real regime or TVA standard real regime.

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TVA Simplified Real Regime

The regime TVA real simplified shall apply to a company from 1er January of a year N  where it complies with TVA’s turnover and amount thresholds:

Threshold for duty-free turnover
  • Its turnover excluding taxes in N-1 must be between:
    • €85,000 and €945,000 for business, catering and housing supply activities (except furnished rentals):
    • €37,500 and €286,000 for other service provision activities (including furnished rentals):
  • Its turnover excluding tax realized in N shall not exceed increased thresholds following:
    • For business, catering and housing supply activities (except furnished rentals): €1 040 000
    • For other service delivery activities (including furnished rentals): €323,000

FYI  

These thresholds are valid for 2026 (year N).

Threshold on the amount of TVA due

The amount of TVA due for the year N-1 must be less than €15,000

Consequences in the event of exceedance
  • If the normal turnover threshold for the activity carried out is exceeded, or the TVA threshold due (€15,000): the company switches to the TVA normal real speed from 1er January of the year following the year of the exceedance.
  • If one of the thresholds is exceeded increased of turnover, the company shifts into the TVA normal real speed in a retroactive, that is to say that this regime will apply from 1er January of the year in which the overrun occurred. The company must then subscribe to a declaration (3) summarizing all transactions carried out over the entire month (or quarter). This declaration must be made the month following the month (or quarter) of the overrun.

TVA Normal Actual Speed

The individual business shall be subject to TVA’s normal real regime where its turnover is:

  • For a sale of goods, articles, supplies and foodstuffs exceeding €945,000
  • For the provision of services greater than €286,000

The individual business shall be subject to TVA’s normal real regime where its turnover is:

  • For a sale of goods, articles, supplies and foodstuffs exceeding €945,000
  • For the provision of services greater than €286,000

Within 30 days of cessation of activity, the contractor must make a declaration n°3310-₩3-SD.

This declaration must be made in such a way that dematerialized (sending paper forms is no longer possible):

  • Either by a manual online entry form (EFI mode). The company completes it itself, connecting:

On his professional space impots.gouv.fr:

Online tax account for professionals (EFI mode)

Or on his account Portailpro.gouv. :

Business account portailpro.gouv

  • Either by going through a software of special exchange (EDI mode). In this case, the company or more generally its representative (for example a public accountant) enters all the information required and then transmits it to the administration.

These two methods of remote reporting are further detailed on the page "How to submit business tax returns: EDI or EFI? »

Please note

The tax authorities grant an additional period of 15 calendar days to carry out this teleprocedure.

FYI  

The tax authorities shall make available for information only a model of Declaration No 3310-₩3-SD.

To learn more about the TVA's tax systems, you can consult the fact sheet declare and pay the TVA.

Territorial Economic Contribution (TEC)

It is composed of the company value added tax (CVAE) and company property tax (CFE).

Contribution based on the added value created by the company (CVAE)

Any company with a turnover of more than €152,500 must make a declaration of added value and number of employees,

Within 60 days Following the completion of the activity, the contractor must make a declaration No. 1330-CVAE-SD.

This declaration must be made in such a way that dematerialized (sending paper forms is no longer possible):

  • Either by a manual online entry form (EFI mode). The company completes it itself, connecting:

On his professional space impots.gouv.fr:

Online tax account for professionals (EFI mode)

Or on his account Portailpro.gouv. :

Business account portailpro.gouv

  • Either by going through a software of special exchange (EDI mode). In this case, the company or more generally its representative (for example a public accountant) enters all the information required and then transmits it to the administration.

These two methods of remote reporting are further detailed on the page "How to submit business tax returns: EDI or EFI? »

Please note

The tax authorities grant an additional period of 15 calendar days to carry out this teleprocedure.

FYI  

The tax authorities shall make available for information only a model of declaration no. 1330-CVAE-SD.

When the company realizes more than €500,000 of turnover annual Excluding tax, she must file a declaration of liquidation and regularization of CVAE (form n° 1329-DEF).

This declaration must be made in such a way that dematerialized (sending paper forms is no longer possible):

  • Either by a manual online entry form (EFI mode). The company completes it itself, connecting:

On his professional space impots.gouv.fr:

Online tax account for professionals (EFI mode)

Or on his account Portailpro.gouv. :

Business account portailpro.gouv

  • Either by going through a software of special exchange (EDI mode). In this case, the company or more generally its representative (for example a public accountant) enters all the information required and then transmits it to the administration.

These two methods of remote reporting are further detailed on the page "How to submit business tax returns: EDI or EFI? »

Please note

The tax authorities grant an additional period of 15 calendar days to carry out this teleprocedure.

FYI  

The tax authorities shall make available for information only a model of declaration of liquidation and regularization n° 1329- DEF.

Company Property Tax (CFE)

If the company's turnover or revenue does not exceed €5,000 over a period of 12 months, the contractor is exempt from CFE.

Where the contractor is liable for the CFE, he receives a dematerialized tax notice (not by post) on his online tax account. The tax assessment shall indicate the amount of the CFE and the time limit for its payment.

If the contractor has ceased its activity as at 31 december, it shall pay the full CFE due for the year of cessation.

If the contractor has ceased its activity during the year, it may apply to the company Tax Office (SIE) for a reduction of his contribution according to the time of activity before 31 December of the following year. The request must be made from the secure messaging of the professional area of the website impots.gouv.fr or by mail addressed to the SIE:

Online tax account for professionals (EFI mode)

Who shall I contact

To know the steps to achieve a CFE reduction, you can consult the page of the tax site.

Immediate taxation of profits

The cessation of the activity entails taxation immediate :

  • Profits from the end of the last financial year up to the date of cessation of activity
  • Profits subject to tax deferral: these are mainly provisions which have previously been recognized for future losses or expenses which ultimately never materialized at the time of the cessation of activity.
  • Of capital gains d'fixed assets (offices, factories) carried out upon cessation of activity

Capital gains on fixed assets realized on the cessation of activity are exempt under certain conditions.

Exemption from capital gains

An individual business who has worked for at least 5 years may benefit from a exemption from capital gains according to its turnover ({circumflex over ({circumflex over)}).

Turnover thresholds vary depending on the company's activity:

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Sales activity (BIC)

The exemption shall be total where the annual turnover of the company does not exceed €250,000 included.

The exemption shall be partial where the annual turnover of the company is between €250,000 excluded and €350,000 excluded.

Service Delivery Supply Business (BIC and BNC)

The exemption shall be total where the annual turnover of the company does not exceed €90,000 included.

The exemption shall be partial where the annual turnover of the company is between €90,000 excluded and €126,000 excluded.

Agricultural activity (BA)

The exemption shall be total where the annual turnover does not exceed €350,000 excluding taxes included.

The exemption shall be partial where the annual turnover is between €350,000 excluding taxes and €450,000 excluded.

The turnover to be taken into account to benefit from the exemption is the average of the annual turnover achieved during the two calendar years preceding the closing date of the capital gains realization year.

When the company does not exist for two years, the turnover actually achieved over 12 months must be reduced.

Example :

A company has a turnover of €200,000  in 18 months of existence. The average amount to be taken into account is (€200,000 /18 months) x 12 months = €133,333

The individual entrepreneur is affiliated to the social security of the self-employed and pays his social contributions to the Urssaf.

As soon as the declaration of cessation of activity is made at the company formalities window, Urssaf is informed.

  1. The Urssaf is sending a notification de-listing and a tax return form to the contractor.
  2. Within 90 days of the cancelation, the individual contractor must report income for the last 2 yearss for the Urssaf to calculate the contributions. This declaration is made via theUrssaf online space.
  3. Once this declaration has been made, the individual contractor is in one of the following situations:
    • Either he must pay a supplement social security contributions. He receives a notice of appeal and has 30 days to regularize the situation.
    • Either it paid too much in social contributions. He is then refunded within 30 days.

For more information, our factsheet on the social protection for traders and craftsmen details the conditions for payment of social contributions.

FYI  

The declaration of definitive cessation of activity leads to the deregistration of self-employed persons from the social security system.

The Urssaf shall make available a simulator to assist the individual entrepreneur in calculating the amount of contributions due before ceasing to operate:

Simulator of social contributions due in the event of the cessation of activity of a self-employed person

Once all the steps to stop the activity have been taken, the company is delisted the National Register of companies (RNE) and the Trade and businesses Register (RCS) in the case of commercial activity. It is the registrar of the commercial court or the court of justice who cancels the company after the declaration of cessation of activity by the contractor. When the company is struck off, it no longer exists legally and it loses its legal personality.

Please note

This radiation is different from the ex officio cancelation carried out by the Urssaf. It may automatically strike out an individual entrepreneur who declares zero turnover or does not make a declaration of turnover or income for at least 2 consecutive calendar years. This is an administrative penalty that does not result in the disappearance of legal personality.

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