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Suspension of the company's operations

Pursuant to the Act on Entrepreneurs' Law, a company may suspend its operations for a period from 30 days to 24 months if it does not employ any employees. Before submitting the application to the National Court Register, it is necessary to adopt a resolution suspending the activity. It should be remembered that the suspension lasts from the date indicated by the entrepreneur in the application, but it must be the date of submitting the application or a later date. Therefore, it is not possible to suspend activities with a retrospective date.

During the suspension period, the Company does not have to close its accounting books, and thus submit financial statements (provided that the suspension lasts for the entire financial year) and is released from the obligation to pay income tax advances for the period of suspension of operations. If, within 24 months, the Company does not submit an application for the resumption of operations, the National Court Register will automatically make a resuming entry.

If the Management Board of the Company is not aware of the fact that the company is resumed by the National Court Register, there may be omissions, mainly related to the obligation to prepare and submit financial statements. As a consequence of negligence of the management board, the National Court Register may initiate compulsory proceedings. Such cases occur relatively frequently in practice. Entrepreneurs who find themselves in the above situation should immediately complete the documentation and submit it to the court. Otherwise, the Company may impose a fine by the registry court. Currently, financial documents of companies must be submitted online, via the Repository of Financial Documents. Other applications are submitted via the Court Registers Internet Portal.

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