Even if the self-employed stop their business activities, they will generally not face fines if they do not cancel their registration. However, if a self-employed person still fails to cancel the registration after one year and fails to conduct the annual inspection on time, the administrative department for industry and commerce will revoke all his business licenses. According to the Civil Code, the basis for the establishment of a profit-making legal person is the business license issued by the registration authority. Therefore, self-employed individuals with business licenses should abide by relevant laws and regulations, including timely cancellation of registration.

Influence of canceling self-employment:

1. Tax risk: If the self-employed fails to cancel in time, it may be regarded as tax evasion by the tax authorities, resulting in late fees and fines;

2. Social credit impact: the long-term failure of self-employed individuals to cancel the social credit records that may affect legal persons or operators, resulting in restrictions on handling loans, visas and other businesses in the future;

3. Administrative responsibility: According to the relevant laws and regulations, self-employed individuals who fail to go through the cancellation procedures according to the regulations may be investigated for administrative responsibility by the relevant departments;

4. Legal risk: the failure to cancel the self-employed may involve legal liability, such as being identified as illegal business;

5. Operational risk: If the business license under the name of a self-employed person is stolen by others for illegal activities, the original self-employed person may bear relevant responsibilities.

To sum up, self-employed individuals will not be fined even if they stop their business activities and do not cancel their registration. However, if the registration is not cancelled after one year and the annual inspection is not carried out on time, the business license will be revoked. Therefore, self-employed individuals should abide by relevant laws and regulations, including timely cancellation of registration.

Legal basis:

People's Republic of China (PRC) Civil Code

Article 78

A legally established for-profit legal person shall be issued a business license by the registration authority. The date of issuance of the business license is the date of establishment of the profit-making legal person.