Closing down a business takes its time

Your life situation as an entrepreneur might change and you need to terminate business activities. Closing down a business does not mean failure and instead of termination you should think whether you could sell your business or leave your company dormant for the time being, out of which the latter is the cheapest and easiest way, if you think you will continue your business activities in the future.

If you however end up closing down your business, it must be notified to the Finnish Tax Administration and Trade Register. The notification can be made by filling in the electronic form in the service. The notification of termination is free of charge for firms and partnerships. Dissolving a limited company, on the other hand, can cost as much as several hundreds euros.

Reserve time and see to duties

Before making the notification of closing down, you have to meet certain liabilities: you have to pay the company’s debts, sell its assets and terminate its contracts. Going through all of these will take its time.

Discuss taxation with your accountant, since taxes may become due even after the termination date. Note that the accounting records hae to be kept and stored for 6–10 years and the contracts for 3 years as of the termination of the activities.

Once you have completely terminated your entrepreneurial activity, or when you are no longer employed by the enterprise, you can receive unemployment security. Confirm this from your local TE Office.