How to Close a Secondary Establishment

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Closing a secondary or complementary establishment is a relatively simple process compared to the radiation of a company.

What matters most in this case is indeed that someone will retake the emplacement or the business itself in an attempt to protect the labour policy in the country.

For this reason, if your company has a secondary or complementary establishment that you would like to close, there are some formalities to be done.

WHAT DOCUMENTS DO YOU NEED?

First of all, you will need a M2 or P2 form, depending on whether you’re an individual company or not. These forms are used for any modification in the company.

As in the case of closing the head office, you will need to publish a legal announce in a journal to declare the closure of your secondary establishment. The proof of such publication will be demanded when making the closure effective.

Lastly, you need to have a certification stating the sale of the establishment, in case you were the owner, or the termination of the rental agreement for the premises.

WHO DO YOU NEED TO INFORM?

Once you’ve made the choice to close your secondary establishment, especially if you’re a big enterprise employing at least 1,000 people, or 150 in a secondary establishment, you must hold a general assembly with the economic and social committee (called CSE in France) to state the reasons why you want to close the establishment. The minutes of this assembly are then sent to the “Direccte”, which is the regional direction of enterprises. The city hall of the location of the establishment also have to be aware of the future closing.

In addition, if you’re a big company you must find someone to retake the business in that location. After receiving the proposals from the potential buyer, and whether you decide to accept or refuse them, you have to state the reasons of your decision and provide them to the CSE.

Failing to search a new buyer could derive in issues like having to return social aids received, not being eligible for a PSE (job assurance program), etc.

WHAT ARE THE CHARGES?

The charges depend on the amount of secondary establishments that depend of the same administrative area, as well as the number of associates integrating the company.

For an individual company which owns only the establishment to be closed in the area, the cost is 33.93 € or 50.95 € if it owns several premises.

In case of being a company with more than one associate and a single establishment, the cost is 46.48 € or 65.04 € for the owners of more premises.

To these charges, you will have to add those of the publication of the legal announcement.