How to suspend my SASU?
Micco takes you through a detailed exploration of how to place a company in dormant status, its significance, as well as the related procedures and impacts.
In the French business environment, many entrepreneurs may find themselves in situations where they need to temporarily suspend operations without immediately dissolving their companies.
For the owners of Single Shareholder Simplified Joint Stock Companies (SASU), placing the company in dormant status could be a suitable option.
Micco takes you through a detailed exploration of how to place a company in dormant status, its significance, as well as the related procedures and impacts.
Before we dive into how to put your SASU into hibernation, if you want to continue to operate your SASU for the time being, Micco offers you the convenience of a professional business bank account to manage your finances.
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Table of Contents
- What is SASU Dormant Status?
- Why Opt for Dormant Status?
- How to Suspend Operations of a Single Shareholder Simplified Joint Stock Company?
- Implications of SASU Dormant Status
- How to Lift the Dormant Status of a Single Shareholder Simplified Joint Stock Company?
1. What is SASU Dormant Status?
1.1 Definition:
Placing SASU in dormant status refers to a legal procedure of suspending company operations without causing dissolution or liquidation. In this state, the company's legal entity is preserved, but business activities are paused.
1.2 Key Information:
SASU is the single shareholder version of SAS (Simplified Joint Stock Company). Unlike SAS, establishing SASU requires only one unique shareholder.
1.3 Duration:
As per legal regulations, the dormant status of a company initially lasts for one year and can be extended once, thus lasting a maximum of two years.
1.4 Taxation and Social Responsibilities:
During the dormant period, the company still needs to comply with taxation and social responsibility regulations.
1.5 Resuming Operations or Dissolution:
At the end of the dormant period, the entrepreneur can choose to resume the company's operations or dissolve the company.
Placing SASU in dormant status is not just a legal maneuver but also a strategic move by entrepreneurs. This status allows businesses to maintain their legal entities during temporary stagnation, enabling them to resume operations when needed without the hassle of re-registration or establishing new companies. Within a limited period, entrepreneurs can temporarily relieve themselves of business pressures, attend to personal matters, or explore new business opportunities without worrying about the legal status of the company.
2. Why Opt for Dormant Status?
2.1 Benefits:
Placing the company in dormant status can bring many benefits to entrepreneurs, including temporarily suspending operations without the need to dissolve the company.
2.2 Reasons:
Several factors may prompt entrepreneurs to opt for placing the company in dormant status, such as:
- Temporarily engaging in other business activities;
- Temporary decrease in business activities;
- Exploring new business opportunities;
- Pursuing training or further education.
Opting for dormant status is a flexible business strategy that allows entrepreneurs to adapt to market changes and personal needs. In the business world, change is inevitable, and dormant status provides entrepreneurs with a temporary solution to adapt to these changes. For example, when market demand decreases or entrepreneurs want to explore new business areas, placing the company in dormant status can reduce economic losses and legal risks, while laying the foundation for future business reactivation.
3. How to Suspend Operations of a Single Shareholder Simplified Joint Stock Company?
3.1 Decision Process:
Placing SASU in dormant status requires formal documentation. This decision is then modified in the national business registry and published in the official civil and commercial announcements bulletin.
3.2 Decision Authority:
Usually, the decision to place SASU in dormant status is made by the company's president. However, in some cases, the company's articles of association may stipulate that this decision is made by the sole shareholder.
3.3 Procedure:
Suspending company operations requires modifications in the national business registry. To do this, the company's president must report the suspension of activities through an online platform within one month of cessation.
Suspending company operations is not a simple task but requires a series of procedures and documents to be standardized. Before implementing dormant status, entrepreneurs need to ensure that all legal and administrative requirements are met and prepare relevant documents and statements.
This includes preparing formal decision records, modifying company articles of association (if necessary), modifying the national business registry, and publishing relevant announcements in the official bulletin. Although these procedures may seem cumbersome, they are key steps to ensure the legal validity of dormant status.
4. Implications of SASU Dormant Status
4.1 Impact on Commercial Leases:
Placing SASU in dormant status may affect commercial leases. If the lease contains clauses requiring continuous business operations, placing the company in dormant status may result in termination of the lease.
4.2 Taxation and Social Responsibility Impact:
During dormant status, entrepreneurs no longer need to pay value-added tax (VAT), and therefore, do not need to make monthly or quarterly declarations. However, companies still need to fulfill annual business performance reporting obligations as per legal requirements.
4.3 Maintenance of Financial Reports:
Even when the company is in dormant status, entrepreneurs still need to continue fulfilling financial reporting obligations, including annual financial reports. If the company's president is a third party, he must have the
company's financial reports approved by the sole shareholder.
Placing the company in dormant status not only affects the company's operations but also may have implications for its financial and legal obligations. In this state, entrepreneurs need to carefully consider the potential consequences and make necessary preparations.
For example, if the company has commercial leases, placing the company in dormant status may trigger specific clauses in the lease, leading to termination. Additionally, entrepreneurs need to be mindful of changes in taxation and social responsibility to ensure that the company still complies with legal requirements. Meanwhile, even in dormant status, entrepreneurs still need to fulfill financial reporting obligations to maintain transparency and legality of the company.
5. How to Lift the Dormant Status of a Single Shareholder Simplified Joint Stock Company?
5.1 Timeframe:
The dormant status of SASU lasts for a maximum of two years.
5.2 Lifting the Status:
Before the end of the dormant period, the registry can clear SASU. However, before clearance, you will receive a registered letter.
5.3 Restarting or Dissolving:
Before the end of the dormant period, entrepreneurs can choose to restart SASU's operations or dissolve the company. Simply submitting a modification declaration will notify relevant departments of the resumption of SASU's operations.
Lifting the dormant status of SASU is not a complicated task, but it requires entrepreneurs to take a series of steps to ensure the normal operation of the company.
Before the end of the dormant period, entrepreneurs need to assess the current situation of the company and decide whether to restart operations. If they decide to restart, entrepreneurs need to submit a modification declaration to notify relevant departments of the company's reopening.
Additionally, if entrepreneurs decide not to operate the company anymore, they can choose to dissolve the company, ending its legal entity. Whether restarting or dissolving, entrepreneurs need to complete the corresponding procedures within the statutory time limit to ensure the legality and transparency of the company.
In conclusion, placing SASU in dormant status is a legally permissible option that allows entrepreneurs to maintain the legal entity of the company during temporary cessation of business.
This provides flexibility and convenience to entrepreneurs to restart operations when needed.
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Whether you're a freelancer, startup, or established enterprise, Micco offers the tools and support needed to streamline financial operations and drive business growth. Check out Micco today to discover how it can complement your business banking needs.
