Currently, due to the impact of the pandemic, many financial difficulties appear and make companies shut down their business operations. Therefore, businesses have more and more needs to suspend business. So when you want to temporarily suspend your business, what dossiers do you need to prepare? In this article, LSX legal firm will give you a guideline on: “The latest business suspension procedure in Vietnam”
Legal ground
- Law on Enterprise 2020
- Decree No. 01/2021/ND-CP
Business suspension
Business suspension understood as a case where an enterprise suspends production and business activities for a certain period of time. Besides, businesses must notify in writing of the time to start and duration of the suspension.
On the other hand, clause 1, Article 41 of Decree No. 01/2021/ND-CP stipulates business suspension as follows:
“1. “business suspension” means the enterprise’s legal status during its business suspension as prescribed in Clause 1 Article 206 of the Law on enterprises. Starting date of “business suspension” status is the date of business suspension registered by the enterprise. Ending date of “business suspension” status is the ending date of business suspension period as notified by the enterprise or the date of resumption of business ahead of schedule registered by the enterprise.”
One outstanding advantage of suspending business is that when the business resumes operations, the procedure is very simple. In case the suspension period expires, the business will resume operation by itself, and if the business wants to resume earlier than the suspension period, it only needs to make a written notice.
Dossiers for business suspension procedure
To carry out the business suspension procedure. Your business must fully prepare the following documents:
firstly, Notice of business suspension. The notice must bear the signature of the legal representative of the enterprise and the seal of the enterprise.
Also, the notice must contain the following information:
- Company name
- Company ID
- Tax code
- Registered business lines
- Term and reason for suspension
Secondly, the power of attorney for the person to submit the notice on behalf of the enterprise in case the legal representative of the enterprise does not submit it directly.
Thirdly, the Decision to suspend business:
- For a sole proprietorship or a single-member limited liability company, the owner makes the decision.
- In the case of a limited liability company with 2 or more members, the Board of Members makes the decision. Also, a copy of the meeting minutes of the Board of Members recognized by the law.
- In a Joint Stock Company, the decision-making will belong to the Board of Directors. A valid copy of the meeting minutes of the Board of Directors must be submitted.
- For a partnership, the general partners in the company have the right to make the decision. In addition to the decision, the company must attach a copy of the minutes of the meeting.
Business suspension procedure
Step 1: Prepare documents for business suspension
You need to prepare a business suspension dossier with an important part -the reason for business suspension. Usually, businesses use the excuse that they have to deal with financial difficulty and cannot continue to operate.
Step 2: Submit an application for business suspension
After preparing the business suspension dossiers. You submit them to the Department of Planning and Investment of the province/city that you have registered for the head office of your business.
Step 3: Receive and verify the application
The Business Registration Office receives the application, and consults with relevant agencies (if necessary) to process and completes the results of the application. Then, the authorities update the status of the application on the online database.
Step 4: Submit notice of business suspension
You will submit a paper (hard copy) application to the Business Registration Office to receive the result. In case the dossier needs to be amended or supplemented, you will make the amendment and supplement at the request of the registration agency.
Note: The procedure for business suspension only needs to be filed at the Department of Planning and Investment and NOT at the tax agency that is managing the enterprise’s tax.
Step 5: Complete the business suspension procedure
After receiving the notice of business suspension, the business will be suspended from the time on the notice. All business activities after the date of suspension must stop. Enterprises can resume operation after the suspension period expires or request to resume operation before the suspension period expires.
Business suspension service of LSX Legal Firm
Business suspension-a necessary solution for businesses when they cannot continue doing business for a specified period of time. Suspending business quickly will help businesses avoid unnecessary costs. Meanwhile, the business suspension process contains complicated procedures so if businesses do it themselves, they will face many risks. Using the business suspension service of LSX will make you feel secure in each stage of implementation.
To make your case more convenient, LSX will perform:
- Legal advice related to new regulations in business suspension;
- Representing in drafting and editing documents;
- We commit the papers to be valid, and legal for use in all cases;
- Represent to submit documents, receive results, and hand them over to customers.
With a team of experienced, reputable, and professional consultants; The firm is always ready to support and work with clients to solve legal difficulties.
Furthermore, using our service, you do not need to do the paperwork yourself, We guarantee to help you prepare documents effectively and legally.
Also, you will not have to waste time preparing the application, submitting application, or receiving results. At those stages, we will help you do it smoothly.
After all, LSX provides the service with the desire that customers can experience it the best way. Additionally, we guarantee the cost to be the most suitable and economical for customers.
Related articles
Does business suspension subject to tax inspection in Vietnam?
Procedures for business suspension of multi-member LLC in Vietnam
Procedures for business suspension in Vietnam 2022
Related questions
In case the enterprise suspends business, the enterprise shall send a notice to the Business Registration Office where the enterprise is headquartered at least 03 working days before the date of business suspension.
If you send a document to the tax authority directly managing the suspension of production and business activities in a calendar year, you are not required to pay license fees for the year of business suspension, provided: Business and production activities must be submitted to the tax agency before the prescribed fee payment deadline (January 30 of each year), and not yet paid the license fee for the year of suspension.
Do not handwrite application forms. Also, dossiers and copies of personal identification papers, practice certificates, and accompanying papers must be made in A4 size paper;
An enterprise that suspends a business must notify in writing to the business registration office where it has registered and the tax office at least 15 (fifteen days) before suspending its business.
Contact LSX
Finally, hope this article is useful for you to answer the question about “The latest business suspension procedure in Vietnam”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
Conclusion: So the above is The latest business suspension procedure in Vietnam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
