{"id":9043107,"date":"2026-11-11T10:00:05","date_gmt":"2026-11-11T10:00:05","guid":{"rendered":"https:\/\/www.gremicat.es\/?p=9043107"},"modified":"2026-11-02T12:02:08","modified_gmt":"2026-11-02T12:02:08","slug":"self-employed-individuals-may-be-eligible-for-a-suspension-of-business-activity-even-if-their-business-is-not-operating-at-a-loss","status":"publish","type":"post","link":"https:\/\/www.gremicat.es\/en\/self-employed-individuals-may-be-eligible-for-a-suspension-of-business-activity-even-if-their-business-is-not-operating-at-a-loss\/","title":{"rendered":"Self-employed individuals may be eligible for a suspension of business activity, even if their business is not operating at a loss"},"content":{"rendered":"\t\t
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Low revenue, losing customers for months, or maintaining a business that barely generates income can ultimately make a business unviable, even if the books still show a profit. In certain cases, this situation may qualify a self-employed individual for a business closure benefit.<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Some self-employed individuals keep a business open for months, or even years, even though revenue has fallen to levels that barely allow them to sustain the business. In these cases, a significant question often arises: If the business is still turning a profit, even a minimal one, is the possibility of applying for the business closure benefit ruled out? Not necessarily.<\/p>

Various court rulings have held that the absence of accounting losses does not, in and of itself, preclude the recognition that a business has become unviable. The key will be to demonstrate what is happening in the business and why continuing to operate it is no longer reasonable from an economic or productive standpoint.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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What do the regulations require?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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To be eligible for the business cessation benefit, a self-employed individual must be in one of the legally protected situations. These include economic, technical, production-related, or organizational reasons that make it unfeasible to continue the business.<\/p>

The law expressly provides for certain scenarios, including when losses for a full year exceed 10% of the income earned during that same period. But this raises a question that has frequently been brought before the courts: Is that percentage of losses the only way to prove that the business is unviable? Several court rulings have answered \u201cno.\u201d<\/p>

The courts have analyzed cases in which the self-employed individual continued to show a small profit, but their income had fallen to practically negligible levels. In some of these rulings, the benefit was granted because, upon evaluating the totality of the circumstances, it was established that the business could no longer be maintained in a viable manner.<\/p>

This does not mean that any self-employed person with low income is entitled to cease business operations. It is one thing to earn little and quite another to demonstrate that the business has objectively ceased to be viable.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Evidence\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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In an application of this nature, it will not be enough to simply state that the business is no longer profitable. You must provide evidence of how the business has evolved and what circumstances have led to its decline. Particularly useful evidence may include income trends over several fiscal years, tax returns, accounting records, a sustained decline in sales, the loss of major clients or contracts, the existence of debts, or any other information that demonstrates that continuing the business is no longer sustainable.<\/p>

That is why it is especially important to gather the necessary documentation before filing for cessation and not to limit the analysis to the results of a single fiscal year.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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What do we recommend doing?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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If the business is experiencing a prolonged decline in revenue and you are considering closing it, it is advisable to assess the situation before making any decisions. It is advisable to review the financial performance over several fiscal years, tax and accounting records, any outstanding debts, lost customers, and any other circumstances that might explain why the business is no longer viable.<\/p>

  • Please note<\/b>. Before deregistering or permanently closing the business, it is advisable to verify that the requirements for ceasing operations are met and to properly prepare any documentation that the workers\u2019 compensation fund may require.<\/li><\/ul>

    \u00a0<\/p>

    The viability of a business cannot always be reduced to simply checking whether the net income is positive or negative. A self-employed individual may formally show a small profit yet find themselves in a situation where the business no longer generates sufficient income to continue. In such cases, eligibility for benefits will depend on the specific circumstances and, above all, on whether the lack of viability can be objectively demonstrated.<\/p>

    For more information, please contact our Labor Consulting Department.<\/p>

    If you find this interesting, please share it on social media, thank you!<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

    In certain cases, such as having low revenue, losing clients for months, or continuing an activity that generates very little income, this may qualify you for the self-employed business closure benefit.<\/p>\n","protected":false},"author":1,"featured_media":9043090,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[876],"tags":[],"class_list":["post-9043107","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-labour"],"yoast_head":"\nSelf-employed individuals may be eligible for a suspension of business activity, even if their business is not operating at a loss - gremicat<\/title>\n<meta name=\"description\" content=\"In certain cases, such as having low revenue, losing clients for months, or continuing an activity that generates very little income, this may qualify you for the self-employed business closure benefit.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.gremicat.es\/el-autonomo-puede-acceder-al-cese-de-actividad-aunque-su-negocio-no-tenga-perdidas\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Self-employed individuals may be eligible for a suspension of business activity, even if their business is not operating at a loss - 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