Closing a Sole Proprietorship (FOP) via Diia in 2025–2026: How to Close a FOP Correctly Without Fines or Debts

Closing a sole proprietorship (FOP) via the Diia app has become much easier. However, in practice, many entrepreneurs face tax issues after business termination. The most common mistake is assuming that clicking a button in the app means the FOP is fully closed from a legal and tax perspective.

In this article, we explain how to close a FOP via Diia correctly, which actions are mandatory after termination, and how to avoid fines and hidden tax liabilities.

Is it possible to fully close a FOP via Diia?

Yes, closing a FOP via Diia is legal and official. The electronic application is submitted online and automatically sent to the state registrar. After processing, the Unified State Register shows the status “Terminated”.

However, it is crucial to understand that closing a FOP in Diia is a registration action only, not the completion of all tax obligations. The tax authorities operate separately from the register, which is where most issues arise.

How to close a FOP via Diia: step-by-step guide

The FOP closure process via Diia includes the following steps:

1. Log in to the Diia app.

2. Go to the “Entrepreneurship” section.

3. Select “Close FOP”.

4. Review personal data and activity codes (KVED).

5. Sign the application using a qualified e-signature or Diia.Signature.

6. Receive confirmation of FOP termination.

7. Check the FOP status in the Unified State Register.

At this stage, the FOP is closed in the register, but not yet in the tax system.

Common mistakes when closing a FOP via Diia

Tax debts after FOP closure

Outstanding taxes or social contributions (SSC/ESV) do not prevent filing the application, but they prevent full completion of the procedure. Even a minor debt may result in penalties.

Failure to submit the final tax return

A final tax declaration is mandatory, even if there was no business activity or income. Failure to submit it leads to fines.

Issues with electronic signatures

Expired or invalid e-signatures are among the most common technical reasons for rejection.

Bank accounts

Entrepreneurial bank accounts are not always closed automatically. Fees may continue to accrue after termination.

Data inconsistencies in registers

Errors in addresses, activity codes, or personal details may cause the FOP status to remain unresolved.

What must be done after closing a FOP

To ensure the FOP is fully and finally closed, you must:

• submit the final FOP tax return;

• pay social security contributions for the last period;

• verify there are no outstanding tax liabilities;

• close business bank accounts;

• keep closure documents for at least 3 years.

When legal assistance is recommended

Legal support is advisable if:

• the entrepreneur is abroad;

• there are tax debts or penalties;

• the FOP was closed previously but remains active;

• registry data contains errors;

• a full tax audit is required before closure.

Closing a FOP via Diia is a convenient solution, but only when all tax obligations are properly finalized. Ignoring final reporting or social contributions may result in fines even years later.

Lawyers of Case Lviv recommend treating FOP closure as a comprehensive legal process, not merely an online formality.