Liquidation of a sole proprietorship requires clear preparation and compliance with all legal procedures. Modern digital technologies, such as the Diia platform, greatly simplify this process. But is it really that simple? Find out more about why hiring a business lawyer is the best choice for successfully closing a sole proprietorship

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A proactive digitalization policy is making it easier to do business in Ukraine. A large number of registration actions can now be performed in the Diia app. This also applies to the liquidation of a sole proprietorship. The application will be filled in automatically based on data from the Unified State Register, which saves time and money.

However, filing an application through Diia is only the first stage of closing a sole proprietorship. Next, you need to file tax returns, pay taxes, close bank accounts, and complete other mandatory procedures. Therefore, despite the convenience of Diia, professional legal support remains relevant.

To learn more about the “historic” tax increase in Ukraine, please follow the link.

How to close a sole proprietorship through Diia?

To close a sole proprietorship, an entrepreneur needs to take several mandatory steps to avoid fines and problems with the tax authorities.

First of all, it is important to prepare and submit tax reports. For sole proprietors on the simplified taxation system, this is a single tax return: monthly for groups 1 and 2 or quarterly for group 3. Entrepreneurs on the general taxation system must file a liquidation declaration of property and income. The report covers the period from the beginning of the year to the date of registration of the liquidation application. The reporting deadline is 30 days from the date of registration. The reports can be submitted online through the taxpayer's electronic account, in person to the tax service, or by registered mail with a description of the attachment.

Next, you need to pay all taxes. For the simplified system, this is a single tax, for the general system - personal income tax (PIT). All entrepreneurs are also required to pay a single social contribution (SSC).

The last step is to close the sole proprietorship's bank account. This procedure is carried out in accordance with the bank's rules and usually requires the client's presence.

It is worth remembering that continuing to operate after the closure of a sole proprietorship will be considered illegal business. This may result in a fine of UAH 340, and for a repeated violation - from UAH 17,000 to 34,000.

In our previous article, we explained how to switch to another group of single tax payers.

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Why is it better to contact a business lawyer?

Despite the possibility of closing through Diia, engaging a professional lawyer has significant advantages.

Closing through Diia is a simplified procedure, but it does not cover all legal and tax nuances. For example, after applying, you need to file reports with the tax office, pay unified social security contributions, taxes, and close a bank account. Mistakes or omissions can result in fines and delays. A business lawyer will ensure that all stages are completed correctly, avoiding unnecessary costs.

The lawyer will comprehensively analyze all the nuances of your business: tax liabilities, possible debts, the status of accounts, and then prepare the necessary documents, including liquidation statements. Experienced professionals will represent your interests before the tax authorities and banks. This is especially important for entrepreneurs on the general taxation system, where the liquidation declaration covers the entire current year.

Although legal services require an additional fee, they help to avoid much larger financial losses due to fines or mistakes.

Action is not always the ideal option. The service does not provide advice on the nuances of tax liabilities, nor does it resolve issues with closing bank accounts or tax audits. You remain responsible for all stages of the sole proprietorship liquidation.

Turning to experienced business lawyers, you gain not only confidence in the legality of your activities, but also convenience in doing business. To make an appointment for a consultation or order full legal support, write to us on WhatsApp, Telegram or fill out a special form on the website.

On the Visit Ukraine portal, you can order legal advice on business issues for both Ukrainians and foreigners.

We remind you! The IT sector has long been one of the main drivers of Ukraine's economy. Diia City is a unique legal regime for IT companies that stimulates the development of technology business, attracts investments and provides an opportunity to work transparently and efficiently.

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