A sole proprietor (FIE) is deleted from the Commercial Register at their request or on another basis set out by law. A sole proprietor will not be deleted from the Register if they are required by law to be entered onto the Register.
If the FIE no longer meets the definition of an undertaking pursuant to Section 1 of the Commercial Code and has not notified the registrar of the suspension or termination of their activity, the registrar will delete the sole proprietor from the Register on the basis of Section 59(32) of the Commercial Code.
A court may impose a prohibition on engaging in business activities as punishment for an offence committed by an undertaking. The registrar will immediately delete the FIE from the Register on the basis of a court judgment imposing a prohibition on engaging in business activities.
Ending a FIE’s activity in the event of death
The FIE’s business activity is considered ended if no-one continues the FIE’s business activity. The entrepreneur’s tax obligations and assets pass to the successors in accordance with the Law of Succession Act. If the successors give up claim to the inheritance, the business assets and obligations of the bequeather will not be transferred to them. In case of failure to communicate abandonment of claim, the estate will without exception be considered accepted by the successors.
If the assets of the bequeathed are inventoried, the successor will be released from the obligation to pay the bequeather’s debts from his/her own assets. Thus, if debts exist, they are to be paid only within the limits of the value of the inherited assets. The successors must pay both the tax amounts declared by or determined for the bequeather.
Continuing a FIE’s activity in the event of death
If the successor decides to continue business activity, the successor must, within the first month of the death of the bequeather, register as a new entrepreneur in the Commercial Register and in the case that he or she is a VAT taxpayer, with the Tax and Customs Board. The owner, business name and other necessary information shall be changed in the Commercial Register. An opening balance sheet shall be drawn up as of the first day of the calendar month of the bequeather's death.
The new entrepreneur shall continue activity as the same undertaking, with the same register number, assets (cash, receivables, equipment, livestock etc) and liabilities (loans, leases, labour etc) which are now the responsibility of the successor. The tax returns (except for the VAT return) for the month of the bequeather’s death and the following calendar months must be filed in the name of the person continuing the business activity. In addition to that, the successor who has decided to continue FIE’s activity must declare the business income in the name of the bequeather for those calendar month when the bequeather was alive, but the term for the submission of tax returns has not arrived yet.