Termination of a sole trades operation

This pages explains all about the termination of a sole tades operation. The three-month period is intended to inform interested parties like business partners and creditors, on the termination of a sole trader's operations. In this period, the sole trader can reclaim or settle all liabilities with buyers or suppliers.

Deletion from the Business Register of Slovenia

A request for deletion from the Business Register of Slovenia must be filed at least 15 days prior to the requested date of deletion from the mentioned register.

The request for deletion can be filed by the entrepreneur or by a proxy, whereby the latter should also submit a written letter of authorisation in which the authorising entity's signature should be certified.

The signature can be certified by a notary or at an administrative unit. The request for deletion can be filed via the e-VEM online portal online portal or at VEM points.

Liabilities to the Tax Administration of the Republic of Slovenia

An entrepreneur is obliged to file within 30 days from the date of termination of activities a tax assessment for the prepayment of tax on income from self-employment on the date of termination at the Tax Administration of the Republic of Slovenia.

This assessment should indicate revenues and expenses which occurred up to the date of termination of activities. As of 1 January 2009, documents can be submitted only via the eTax system, where all the entrepreneur's obligations and procedure for submitting the assessment are described.

Termination of insurance

After the deletion from the Business Register of Slovenia, the entrepreneur is obliged to deregister from the insurance system within 8 days of the date of deletion from the Business Register of Slovenia. Deletion is effected on the basis of a completed M2 form, which the entrepreneur receives together with the M1 form after making a registration in the insurance system. Entrepreneurs can delete their registration in person at the regional unit or in electronic form via the e-VEM portal.

What about years of employment?

The years of employment of an entrepreneur are recognised on the basis of paid social contributions. Employment booklets were abolished in 1 January 2009; therefore, as of that date, records on paid contributions are managed by the Pension and Disability Insurance Institute and the Tax Administration of the Republic of Slovenia. The Pension and Disability Insurance institute manages the records on achieved insurance periods, while the Tax Administration of the Republic of Slovenia manages the records on paid contributions.

After deregistration from the insurance system, it is recommended that you obtain a confirmation of paid contributions from the Tax Administration of the Republic of Slovenia, since this confirmation will be useful in proving the employment period in case of any dispute regarding the years of employment and paid contributions in the future. Therefore, it is recommended that entrepreneurs themselves manage records on paid contributions.

Sanctions

The Companies Act stipulates that an entrepreneur is liable to a fine of EUR 600 to EUR 1600 if the termination of operations is not registered as stipulated by the Companies Act.

Source: Mladi podjetnik