If you opened up your business informally it’s okay to close it informally after all no one knew you were even operating to start with but if you opened up your business formally/legally then you can’t close it just like that.
You can’t just pack your stuff, take them to your garage and return the landlord’s keys, it doesn’t work that way.
You went through a process that saw you register with the registry, register with the tax man, register with local government for the license and register with the bank for an account.
Closing your business means walking that process backwards to where you started from which is the registry.
You need to not only notify the landlord but also the bank, the tax man and the registry. Failure to do so will mean you’re still in operation hence have to adhere to operation requirements. To avoid this inform every one formally about your desire to close shop like you informed them about your desire to open shop.
Write to the bank and close that account. Write to the tax man and deactivate your TIN and then write to the registry and cease that businesses. At this point you’ll have officially closed down the business and no one will disturb you at all.
If you don’t do this no one will know you’ve closed except yourself. The tax man will still be expecting you to file returns and pay your taxes, the registry will still be expecting you to file returns, local government will still be expecting you to pay for license fees. Imagine closing without even informing the landlord, he/she will still be expecting rent not so?
Would you blame them? Surely not.
So settle all your debts, get an audit report to that effect because they won’t allow you to close with people’s money. The business should demonstrate that it has no debts at closure or if it does there’s an agreement with the creditors to pay them.
Clear your workers, clear your suppliers, clear your tax liability for the period before closure, clear your returns with the registry, clear your landlord then close properly.
Jaluum Herberts Luwizza is a Speaker, Writer and Contributor with the Nile Post. He is also a Business Consultant at YOUNG TREP East Africa’s No.1 Business Management and Consultancy firm that helps people start and grow profitable businesses.
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