In this article on the Individual company we will go over the case of the bankruptcy of the same and the closure of the VAT number
Bankruptcy is the final act that occurs when you carry out all the operations aimed at saving the company from the crisis, such as arrangement with creditors, company restructuring, request for controlled administration, it has not been possible to reach an agreement between entrepreneurs and creditors. Therefore bankruptcy is a bankruptcy procedure aimed at liquidating the entrepreneur’s assets and remedying debts with the creditors of the company owned by the entrepreneur, according to the criterion of par condicio creditorum and respecting the legitimate causes of pre-emption.
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The reasons for deciding to close the VAT number are different and subjective. Think of the owner of a small business who is unable to cover the costs of his business or think of a freelancer who is unable to chase bad payers and has now come to financial straits, or who has left his game. VAT has been inactive for a long time because it no longer billed due to lack of orders, customers etc. in all these cases and in many others it is appropriate to close the VAT number.
If an individual company is registered in the Register of Companies, then the procedure to be followed to close the VAT number is telematic. It uses a ComUnica software made available by the Business Register which allows you to send a single communication to all interested bodies, such as the Chamber of Commerce, the Revenue Agency, INPS, INAIL.
Otherwise, if the VAT number is not registered then it is necessary to use the AA9 / 11 model available on the website of the Inland Revenue, after completing it following the instructions attached to the model, there are three delivery methods:
Hand delivery to an office of the Revenue Agency of the office of jurisdiction;
Shipping via registered mail with return receipt;
Telematic sending through intermediaries authorized to use the Entratel service.
After obtaining the closing receipt from the Revenue Agency, you must present it to the other offices such as INPS, INAIL to close the positions and possibly to the Municipality.
If the individual company is registered in the Business Register then the owner will have to pay a stamp duty of 17 euros to be applied on the model which must be presented to the Inland Revenue within 30 days of the closure of the business. This mandatory term must be honored, otherwise, the Revenue Agency will automatically close the VAT number, after carrying out its checks, with the application of the related penalties. If the individual company is registered in the commercial register, no closing costs will be incurred.
If you have an individual company, if you are a freelancer, or a craftsman or a self-employed person and during your activity you have contracted debts that at the closure of the same you were unable to pay, you can still close your VAT number. The procedures, the models to be sent and the costs are the same as those mentioned above in the event that an individual company has no debt.
However, your creditors will be able to act legally and retaliate both on your assets and on your personal assets, because the aforementioned economic activities are only liable for social debts.
Therefore creditors will be able to seize them with their sale at the auction aimed at obtaining fair compensation.
The attachment is the actual forced execution which is manifested by an injunction made by the bailiff to the debtor with whom, pursuant to art. 492 c.p.c. urges him to refrain from performing any act aimed at removing the assets subject to expropriation and the fruits of them from the credit guarantee. It is possible to attach movable property or money, real estate, credits that the debtor has to third parties or assets owned by the debtor but in the availability of third parties.
With the attachment, the debtor can also ask to substitute the sum and money of the corresponding value due to the attachment creditor to the things and the seized credits.
An alternative to the attachment is the deferred payment of the debt granted to the defaulting party, with which the latter has a period of time agreed with the creditor to find the sums of money due and to honor his commitments at fixed installment dates. It is advisable to protect yourself by resorting to a written contract which includes:
Once the bankruptcy procedure has been completed, the Bankruptcy Office issues a document defined as a certificate of shortage of assets, with which the creditor has the possibility in the future to take recourse on the debtor who has not been able to fulfill his obligations, that is, has had difficulty in pay its debts towards the creditor company or the individual creditor. This certificate contains information on the nature and amount of the debt and protects the creditor, who, for about twenty years, has the right to request the debtor to pay his debt if he no longer goes into a state of economic crisis.
The bankrupt entrepreneur is subtracted from material availability for his assets and personal assets, except for the assets considered indispensable by law for the sustenance of the bankrupt and his family such as housing and minimum income. The judge can also decide to pay a periodic allowance for the bankrupt and his family to guarantee their maintenance and any necessary medical expenses.
The objective prerequisite for bankruptcy is the state of insolvency that occurs every time the entrepreneur fails to fulfill his obligations, payments, obligations. The state of insolvency occurs every time it has been protested and reported to the banking risk center and consequently the credit line has been revoked; if the legal representative is unavailable; if the registered office is closed and it was impossible to notify the precept; furthermore, when the registered office is closed, it is not necessary to notify or proceed with the attachment because it would represent an expensive and useless burden.
A recent sentence of the Cassation n. 98 of 7 January 2016 establishes that the end of the quality of entrepreneur is not subject to cancellation from the business register as provided for by art. 2495 of the Italian Civil Code, but the qualification of entrepreneur depends on the actual performance of one’s economic activity. http://www.diritto24.ilsole24ore.com
An entrepreneur who has failed to exercise a new business is not subject to any prohibition, in fact he does not suffer any negative pressure from the regulatory side; therefore he is free to start a new economic activity. The only limit is to be found in the novative nature of the company with respect to the previous one, the new activity must in no way constitute a continuation of the first, in fact it must be new, original and different from the previous one. Another element for the new activity to materialize is in the economic means used to start it which must be available and must not be used to pay the debts of the previous failed activity. In light of this, it is understandable how the bankrupt can regularly open a new VAT number.
Unlike entrepreneurial activity, the bankrupt can also decide to be hired for a type of employee with a permanent or fixed-term contract, since the company that hires him, generally, has no prejudices because the bankruptcy status is independent of the moral conduct but it is inherent in the economic difficulty created by other factors that do not depend on the behavior of the bankrupt.
Furthermore, the bankrupt is free to open all the current accounts that he wishes, but first he must bring to the attention of the curator of the will to do so so that the latter can exercise control and acquire the bankruptcy assets of the liquidity that has occurred, pursuant to the second paragraph of the ‘art. 42. L.F. The curator must exclude wages, wages and pensions from the verification, which, pursuant to art. 46 L.F., are not included in bankruptcy because they are inherent to personal and family sustenance and must be paid to the bankrupt within the limits set by the delegated judge.
In conclusion, we can say that the bankrupt can always start again and get back into the game, opening a new business, as he is deprived of his personal assets, except the assets necessary for his maintenance and that of his family, and of the company assets up to satisfy the creditors, therefore no one forbids him to work as a self-employed or an employee afterwards
If you need help because you want to close your individual company and you are not familiar with the procedure, contact us for advice
Alternatively, if you just want some clarification, write us in the comments