Decision to place a company in dormancy
Placing a company in dormancy allows its activity to be temporarily suspended without dissolving it. It is useful in case of temporary difficulties, while waiting for a buyer or during a pause in the project. The company keeps its legal existence, its registration and its minimal accounting obligations, but ceases all commercial activity. The decision rests with the director (gerant or president). It must be declared to the guichet unique (single window) of the INPI within the month. Dormancy is limited to two years, at the end of which the activity must resume or the company must be struck off the register. This form is in English, but the document is generated in French, ready to sign and use in France.
Note: the questionnaire is in English; the generated document is in French.
The company
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Frequently asked questions
How long can dormancy last?
Dormancy is limited to a maximum of two years. At the end of this period, the director must either resume the activity or proceed with the dissolution and striking off the company from the register. Otherwise, the greffe (registry) may initiate a striking-off procedure of its own motion.
What obligations remain during dormancy?
The company must continue to keep its accounts, file its annual accounts and declare its results (even nil ones). It remains liable for certain contributions, but is in principle exempt from CFE (local business property tax) from the second year of total cessation of activity. It keeps its SIREN number and its registration.
How is dormancy declared?
The director's decision must be declared on the guichet unique (single window) of the INPI within the month following the cessation of activity. No publication in a legal announcements journal is mandatory for dormancy, unlike other changes.
Can activity resume before the end of the two years?
Yes, at any time. The director declares the resumption of activity on the guichet unique (single window) of the INPI. The company then exits dormancy and resumes normal operation, without heavy formalities.
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