Cessation of activity of the individual contractor (voluntary closure)

Verified 09 December 2025 - Entreprendre Public Service / Directorate of Legal and Administrative Information (Prime Minister)

In order to permanently cease its activity, the individual contractor must make a declaration of cessation of activity. He must also carry out 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 has a legal existence.

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, the professional and personal assets of the individual entrepreneur are combined into 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 last income tax return or a return complementary to the income tax return.

The approach depends on the tax system:

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Micro-company regime

In order to benefit from the micro-company tax system, the following turnover thresholds must not be exceeded: 

  • For the BIC microphone:  €188,700
  • For the BNC microphone: €77,700

In order to benefit from the micro-company tax system, the following turnover thresholds must not be exceeded: 

  • For the BIC microphone:  €188,700
  • For the BNC microphone: €77,700

In the 60 days following the date of cessation of 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 date of cessation.

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

Taxes: access to your space Private

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

Actual tax regime

Taxation scheme applicable to companies subject to business or income tax which exceed the thresholds of the micro-company scheme (€77 700 for NCOs, €188 700 for BICs and €15 000 for unclassified tourist accommodation). The actual regime can be simplified or normal. Companies subject to another tax regime may opt for the actual tax regime.

Taxation scheme applicable to companies subject to business or income tax which exceed the thresholds of the micro-company scheme (€77 700 for NCOs, €188 700 for BICs and €15 000 for unclassified tourist accommodation). The actual regime can be simplified or normal. Companies subject to another tax regime may opt for the actual tax regime.

The contractor must perform a last statement of results.

  • When the entrepreneur makes industrial and commercial profits (BIC): this is declaration n°2031-SD
  • when the contractor makes non-commercial profits (NCB): 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 itself, by connecting to its professional space impots.gouv.fr :

Online tax account for professionals (EFI mode)

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

Portailpro.gouv: common portal to simplify your declarations and payments

FYI  

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

VAT declarations

If the activity of the individual contractor is subject to the VAT, he must submit a VAT declaration online. The reporting rules depend on the tax system: simplified real system or normal real VAT system.

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Simplified real regime

The entity shall be subject to the simplified real VAT regime where its turnover is:

  • For a sale of goods, articles, supplies and foodstuffs between €85,000 and €840,000
  • For the provision of services between €37,500 and €254,000

The company must also respect an annual amount of VAT less than €15,000.

The entity shall be subject to the simplified real VAT regime where its turnover is:

  • For a sale of goods, articles, supplies and foodstuffs between €85,000 and €840,000
  • For the provision of services between €37,500 and €254,000

The company must also respect an annual amount of VAT less than €15,000.

In the 60 days after cessation of activity, the contractor must make a declaration No. 3517-S-SD (CA12).

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 itself, by connecting to its professional space impots.gouv.fr :

Online tax account for professionals (EFI mode)

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

Portailpro.gouv: common portal to simplify your declarations and payments

FYI  

The tax authorities shall make available a model of Declaration No. 3517-S-SD.

Normal real speed

The entity shall be subject to the normal real VAT regime where its turnover is:

  • For a sale of goods, articles, supplies and foodstuffs exceeding €840,000
  • For a service provision greater than €254,000

The entity shall be subject to the normal real VAT regime where its turnover is:

  • For a sale of goods, articles, supplies and foodstuffs exceeding €840,000
  • For a service provision greater than €254,000

Within 30 days after cessation of activity, the contractor must make a declaration n°3310-CA3-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 itself, by connecting to its professional space impots.gouv.fr :

Online tax account for professionals (EFI mode)

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

Portailpro.gouv: common portal to simplify your declarations and payments

FYI  

The tax authorities shall make available a model of Declaration No 3310-CA3-SD.

For more information on the VAT tax systems, you can consult the fact sheet declare and pay VAT.

Territorial Economic Contribution (TEC)

It is composed of the company Value Added Assessment (CVAE) and the company property tax (CFE).

Business Value Added Tax (CVAE)

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

Within 60 days After the end 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 forms (EFI mode). The company completes them itself, by connecting to its professional space impots.gouv.fr :

Online tax account for professionals (EFI mode)

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

Portailpro.gouv: common portal to simplify your declarations and payments

FYI  

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

When the company achieves 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 forms (EFI mode). The company completes them itself, by connecting to its professional space impots.gouv.fr :

Online tax account for professionals (EFI mode)

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

Portailpro.gouv: common portal to simplify your declarations and payments

FYI  

The tax authorities shall make available 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 of CFE.

Where the contractor is liable for the CFE, he receives a dematerialized tax notice (not by mail) on his online tax account. This tax notice indicates the amount of the CFE and the time to pay it.

If the contractor has ceased its activity as at 31 december, it must 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 site 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 be taken to obtain a reduction in the CFE, you can consult the page of the tax site.

Immediate taxation of profits

The cessation of the activity entails taxation immediate :

  • Profits realized since the end of the last financial year ended up to the date of cessation of activity
  • Profits suspended from taxation: these are mainly provisions which have previously been incurred for future losses or expenses which have never been realized at the time of the cessation of activity.
  • Some capital gains d'fixed assets (offices, factories) carried out at the time of cessation of activity

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

Exemption from capital gains

A person who has been in business for at least 5 years may benefit from exemption from capital gains based on its turnover (turnover).

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 company's annual turnover is between €250,000 excluded and €350,000 excluded.

Service Delivery Supply Activity (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 company's annual turnover 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 2 calendar years preceding the closing date of the capital gains year.

When the company does not have 2 years of existence, it is necessary to reduce the turnover actually achieved over 12 months.

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 and contributions to the Urssaf.

As soon as the declaration of cessation of activity is made on the companies' formalities window, the Urssaf is informed.

  1. The Urssaf sends a notification of radiation 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 he paid too many social contributions. It is then refunded within 30 days.

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

FYI  

The declaration of definitive cessation of activity entails the deregistration of self-employed persons from the social security scheme.

The Urssaf provides a simulator to help the individual contractor calculate the amount of contributions due before ceasing his activity:

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

Once all the steps to cease the activity have been taken, the company is written off the National Register of companies (RNE) and the Trade and businesses Register (RCS) in the event of commercial activity. It is the registrar of the commercial court or the court of justice who carries out the cancelation of 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 automatic removal from the register carried out by the Urssaf. It may automatically strike out an individual contractor who declares turnover to be zero or does not make a declaration of turnover or income for at least 2 consecutive calendar years. This is an administrative sanction that does not result in the disappearance of the legal personality.

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