How an individual entrepreneur (IE) can stop carrying out their activities — General Rules.

Stage 1: Preparing for liquidation

Before the individual entrepreneur performs direct actions to terminate business activities, he/she must:

1) if he/she did not work himself/herself, but hired employees to carry out his/her activities, it is necessary to terminate the employment relations with them – clause 1, Part 1, Article 40 of the Labor Code.

2) terminate all existing contracts (lease, supply, service agreements, etc.). When the individual entrepreneur has accounts receivable or payables, after the liquidation of the individual entrepreneur, the obligations under the concluded contracts will not be terminated, but will remain with him/her as an individual.

3) it is necessary to check whether the correct information is specified in the Unified State Register (hereinafter – the USR) about the individual entrepreneur. If it is incorrect, for example, the data from the USR differs from the passport data of an individual working as an individual entrepreneur, it is necessary to make amendments to the USR and correct the situation.

Check on the website of the Ministry of Justice ( in the form that appears in the “Get information about” field, put a mark next to “individual entrepreneur”. Check information about the individual entrepreneur.

If everything fits together, we move on to the next stage. If there are inaccuracies or even data about you as an individual entrepreneur is not entered in the USR (if the individual entrepreneur was registered before July 01, 2004), you should correct the situation. To do this, you should submit an application to the registrar according to Form 1, approved by Order of the Ministry of Justice No. 3268/5 of November 18, 2016.

Stage 2: Exclude the individual entrepreneur from the USR

Making an entry in the USR on termination of business activities of individual entrepreneurs – submit an application to the registrar according to Form 1. An application for termination of the individual entrepreneurs in electronic form can be made via the web portal “Diia” ( On the day of making an entry in the USR, the Tax Service, State Statistics bodies and the Pension Fund will be notified.

Step 3: Deregistration

From the date of deregistration of the individual entrepreneurs, the accrual of taxes for the individual entrepreneurs will cease, but an individual who was an entrepreneur will continue to be registered with the Tax Service as an individual taxpayer who received income from business activities (subclause 6, clause 11.18 of Order No. 1588). After the liquidation of the individual entrepreneur, an individual must conduct final calculations for the obligations of the individual entrepreneur. An unscheduled documentary check is also possible (clause 78.1.7 of the TCU).

Deregistration from the unified social contribution (hereinafter – the USC) accounting: the final month for which the USC will be accrued will be the month on which the date of its termination falls. After entering data in the USR on the termination of the individual entrepreneur, an individual must submit liquidation reports on USC. Such reports must be submitted as part of the liquidation reports on the unified tax or the liquidation and property status tax return.

Stage 4: Closing bank accounts

After the termination of business activities and deregistration of the individual entrepreneur, an individual must close current bank accounts opened in financial institutions as an individual entrepreneur.

Step 5: Cancellation of the electronic signature

After termination of the individual entrepreneur, the individual must cancel the electronic signature (QES) which he/she used to carry out business activities, i.e. to contact the authority that generated this key. This key itself will become invalid after the key certificate expires.