Under the Accountancy act legal entities, that have not developed commercial activities as defined in the act , are obliged to declare this circumstance by the 31st of March of the next calendar year before the Commercial register and the Register for non-profit legal entities(or in economic publication or via internet, where the entities in principle have the obligation to publish their annual financial statements there).
According to the latest amendments in the Accountancy act, which have entered into force on 1st January 2020, the lack of commercial activity should be declared by the respective legal entity once for the first reporting period. As a result of the amendments legal entities, which in 2020 declare lack of commercial activity for the year 2019 under the procedure according to the amended Accountancy act, would not have an obligation to re-declare its commercial inactivity in the following years (unless this circumstance has changed). Additional novelty is that fees for the entering of the declarations for inactivity in the Commercial register and Register for non-profit legal entities are not due anymore.
After the amendments it is explicitly regulated that sole proprietors (sole traders), who have not developed commercial activity in the relevant period, do not have the obligation to publish their annual financial statements, as well as to submit declarations for inactivity in the Commercial register and the Register for non-profit legal entities.
If you would like to receive assistance for submission of declarations in accordance with the Accountancy Act, please do not hesitate to contact our team.
1 According to § 1 p. 30 of the Accountacny Act: “Entities, which have not carried out activity during the reported period" are entities for which the following conditions are simultaneously present: a) no deal under Art. 1, Para 1 of the Commercial Act have been performed during the reported period; b) no conditions to recognize income according to the Accountancy Act and applicable accounting standards have occurred during the reported period; c) no activity related to investment, production and/or sale has been performed; d) no purchase of goods and services in order to obtain income and profits has been realized.
