When businesses face difficulties, especially when affected by the Covid-19 epidemic, many businesses have decided to suspend their business. If the business cannot continue to operate, business suspension worth considering if the business does not want to dissolve. The process of implementing a business suspension is simpler and easier to follow than a complete shutdown. However, many businesses do not know where to carry out procedures for business suspension? So, LSX legal firm would like to answer that question in this article: “Where to submit application for business suspension in Vietnam?”
Legal grounds
- Law on Enterprise 2020
- Decree 01/2021/ND-CP
- Decree 47/2021/ND-CP
Business suspension
Clause 1, Article 41 of Decree No. 01/2021/ND-CP defines: “Business suspension means the legal status of an enterprise during the period of business suspension as prescribed in Clause 1, Article 206 of the Law on Enterprises”
Accordingly, Article 206 of the Law on Enterprise 2020 stipulates about “business suspension” as:
“Article 206. Business suspension and termination
1. The enterprise shall send a written notice to the business registration authority at least 03 working days before the date of suspension or resumption of operation.
2. The business registration authority and competent authorities are entitled to request an enterprise to suspend or terminate its business operation in the following cases:
a) The enterprise that does not fully satisfy the conditions for doing business in restricted business lines must suspend or terminate business operation in the corresponding business lines.
b) Relevant authorities request the suspension in accordance with regulations of law on tax administration, environment, and relevant laws;
c) Operation in one or some business lines has to be suspended or terminated under a court decision.
During the temporary suspension, the enterprise must fully pay unpaid taxes, social insurance, health insurance, unemployment insurance and perform contracts with customers and employees, except for the following cases: Enterprises, creditors, customers and employees have other agreements. “
Where to submit application for business suspension
Dossier of carrying out procedures for business suspension of enterprises:
- Notice of business suspension.
- Decision on business suspension of the Board of members, the Board of Directors.
- A valid copy of the meeting minutes of the Board of Members discussing the decision to suspend business for the enterprise.
- For a sole proprietorship, the decisions and minutes of the meeting to discuss business suspension are not required.
The order of carrying out procedures for business suspension of enterprises:
- The enterprise must send a notice to the business registration office where the enterprise has registered at least 03 days before the business suspension. The content of the notice includes the name, address of the enterprise, duration of the business suspension, and reason for business suspension.
- After receiving the enterprise’s application, the Business Registration Office will process the application within 3 working days to give the result.
Term of business suspension:
The duration of the business suspension shall not exceed one year. Before the suspension period ends, the enterprise can extend the suspension. Although the number of renewals is unlimited, enterprises must notify the business registration office.
Address to submit application for business suspension
After fully preparing valid dossiers; the enterprise shall submit a dossier of business suspension to the business registration office of the Department of Planning and Investment; where the enterprise has registered for the issuance of the Enterprise Registration Certificate before.
Ways to apply for business suspension
Method 1: Submit the application directly to the Business Registration Office of the Department of Planning and Investment.
Method 2: Submit the application for business suspension online in 4 steps as follows:
- Firstly, register an account at the National Business Registration Portal.
- Secondly, enter complete profile information into the business registration system.
- Thirdly, scan and attach the dossier file to the system.
- Lastly, confirm and submit the application.
On the other hand, method 3: Use the business suspension service of LSX.
Note: When submitting the online business suspension application, after the application valid; The subject must bring the receipt and authorization letter to the Business Registration Office to get the results.
Tax declaration dossiers for enterprise
“Clause 3, Article 16 of Circular 151/2015/ND-CP
CIT declaration shall include annual CIT declarations and CIT declarations that up to the time a decision on division, consolidation, merger, conversion, dissolution, or shut down of the company is made.
b) CIT declarations shall include:
b.1) CIT declarations form using form No. 03/TNDN enclosed herewith.
b.2) An annual financial statement or a financial statement that made up to the time a decision on division, consolidation, merger, conversion, dissolution, or shutdown of the company.
b.3) An appendix or appendices enclosed with the tax declaration form issued together with Circular No. 156/2013/TT-BTC and this Circular (on a case-by-case basis)”
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
How to extend the business suspension?
Procedures for temporary suspension of private enterprises in Vietnam
Term of business suspension of the enterprise in Vietnam
Related questions
According to the old regulations, the maximum duration of business suspension is 2 years. However, Decree 01/2021/ND-CP no longer stipulates this provision. Therefore, each time suspending business is up to 1 year. However, businesses can suspend their business many times in a row (no time limit).
Notice of business suspension of the company for the second time (by sample);
Minutes of meetings of the Board of members (LLCs with 2 or more members); Minutes of the meeting of the company’s shareholders (joint-stock company);
The decision of the company owner on business suspending (1-member limited liability company);
The decision of the Board of members (LLCs with 2 or more members); Decision of the Administrative Council of the company (Joint-stock company);
Power of attorney or authorization contract for an individual/organization to carry out business suspension procedure
According to Article 57 of Decree No.78/2015/ND-CP on Enterprise Registration:
In case an enterprise or a branch, representative office, or business location suspends its business or resumes its business ahead of the notified schedule, it shall send to the business registration section with which the enterprise or its branch, representative office, or business location has made registration at least 15 days before the date of business suspension or resumption.
Besides, the business suspension period must not exceed one year. After this notified period, if the enterprise or its branch, representative office, or business location still suspends its business, it shall send another notice thereof to the business registration section. The total period of continuous business suspension must not exceed two years.
Contact LSX
Finally, hope this article is useful for you to answer the question about “Where to submit application for business suspension in Vietnam?”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
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