Lam Dong is one of five provinces in the Central Highlands, Vietnam, and is the 7th largest province in the country, adjacent to the southern key economic region. Therefore, businesses here develop quite strongly. However, the return of the fourth wave of Covid-19 has brought many difficulties for businesses. So, they have had to suspend their businesses. In this article, LSX legal firm provides: “Instructions on procedures to suspend business in Lam Dong”
Legal grounds
- Law on Enterprise 2020
- Decree 01/2021/ND-CP
Overview of businesses in Lam Dong
From the beginning of 2020 to 20/9/2020, 920 businesses have granted business registration certificate with a total registered capital of 7,933.4 billion VND, an increase of 11% in the number of businesses and an increase of 2.1% in the previously registered capital. Also, the number of enterprises registered to suspend operations: 326, up 35.3%; the number of dissolved enterprises: 34 enterprises, a decrease of 74.4%; the number of enterprises returning to operation: 188 enterprises, down 4.1% over the same period.
Besides, 25 projects granted investment, up 22.7% over the same period, total registered investment capital of 2,909.6 billion VND, up 42.7% over the same period, area of 169.3 ha, down 24% over the same period.
According to a survey by the Department of Labor, War Invalids, and Social Affairs of Lam Dong province, by the end of April 10, 2020, the province had 164 businesses with 11,329 employees affected. In which: 8,549 people lost their jobs (termination of labor contracts); 2,780 people take unpaid leave, suspended or stopped working (applied for temporary suspension of participation in social insurance).
Business suspension
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.”
Conditions to suspend business in Lam Dong
Enterprises have the right to suspend business. But must comply with the provisions of Article 206 of the Law on Enterprise 2020 on business suspension. Whereby:
An enterprise shall send a written notification to the business registration authority at least 03 working days before the suspension or resumption date.
The business registration authority and competent authorities are entitled to request an enterprise to suspend or terminate its business operation in the following cases:
- Firstly, the enterprise that does not fully satisfy the conditions for doing business in restricted business lines must suspend or terminate business operations in the corresponding business lines.
- Secondly, relevant authorities request the suspension in accordance with regulations of law on tax administration, environment, and relevant laws;
- Thirdly, operation in one or some business lines has to be suspended or terminated under a court decision.
Also, during the suspension period, the enterprise shall fully pay the unpaid taxes, social insurance, health insurance, and unemployment insurance premiums and fulfill contracts with its clients and employees, unless otherwise agreed upon by the enterprise, creditors, clients, and employees.
Instructions on procedures to suspend business in Lam Dong
Step 1: Prepare dossiers for business suspension
A business suspension dossier should include the following main contents:
- Notice of business suspension.
- The decision to suspend business.
- A valid copy of the meeting minutes of the Board of Members for limited liability companies with two or more members; of the Board of Directors for joint-stock companies; of general partners for a partnership company.
Step 2: Submit an application for business suspension
After preparing the application for temporary business suspension, submit the application to the Lam Dong Department of Planning and Investment.
Methods to perform:
- Submit directly to the Business Registration Office.
- Submit through the National Business Registration Portal at www.dangkykinhdoanh.gov.vn
Step 3: Receive and verify the application
The Business Registration Office handles the application; consults relevant agencies (if necessary) during the settlement process. Then, complete the results of the application and update the status of the application on the online database so that the enterprise can look up the status of the application.
Step 4: Submit notice of business suspension
In case the dossier needs to be amended or supplemented; The competent authority shall notify the enterprise of amendments and supplements.
Step 5: Complete the business suspension procedure
After submitting the notice of business suspension, your business will go into the “suspension” status from the time indicated on the notice. Accordingly, every business activity after the date of suspension must stop. Enterprises can resume operations after the suspension period expires, or request to resume operation before the suspension period has not expired.
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
Penalties for violations of business suspension in Vietnam
Does business suspension have to pay social insurance in Vietnam?
Service of business suspension for foreign company in Vietnam
Related questions
After the business suspension period ends, businesses can choose to:
– Continue to suspend business
– Dissolution
In case an enterprise is temporarily suspending its business operation and wants to return to operation before the deadline, it must send a notice to the business registration office within 3 days before the business resumes operation.
Point c, Clause 2, Article 1 of Decree 22/2020/ND-CP stipulates:
“c)
5. An operating payer of the license fee that has notified its supervisory tax authority in writing of its suspension of production/business in a calendar year must not pay the license fee for that year of production/business suspension if it has sent a written notification of production/business suspension to its supervisory tax authority before the prescribed deadline for paying the license fee (January 30 annually) and has made no payment of the license fee for the planned year of suspension.
It must pay the license fee for the whole year if it does not meet the above mentioned conditions for production/business suspension.”
Thus, during the business suspension, companies will not have to pay a license tax.
Contact LSX
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