Procedures for business suspension of a limited company in Vietnam

In certain cases, enterprises may suspend business for a period of time. Accordingly, enterprises must suspend all activities including branches and representative offices for business suspension in accordance with the law. However, to suspend a business, owners have to carry out procedures prescribed by the law. So, in this article LSX legal firm would like to give you an insight into: “Procedures for business suspension of a limited company in Vietnam”

Legal grounds

• Law on Enterprise 2020
• Decree 01/2021/ND-CP

Limited liability company and business suspension

According to the provisions of the Law on Enterprise 2020, limited liability companies include 2 types of businesses:

• Single-member limited liability company (Single-member LLC)
• Limited liability company with two or more members (Multi-member LLC)

Suspension of the company means the temporary inactivity of a business for a certain period of time.

Accordingly, the procedure for temporary suspension of a limited company is the order and manner of suspending the business regulated by the law.

Depending on the type of business (a single-member limited liability company or a two-member limited liability company), the procedure for implementing a company suspension will be slightly different, but in general, the order of steps will be the same.

Procedures for business suspension of a single-member limited liability company

Step 1: Prepare and draft dossiers:

• Notice of business suspension;
• The decision of the company owner on business suspension;
• Power of attorney for individuals to carry out the procedures (if enterprises cannot do it themselves);
• Copy of the company’s business registration certificate (if any).

Step 2: Submit your application:

Enterprises may choose one of the two methods below to submit their application:

• Firstly, submit the application directly to the business registration office of the province or city; where the company’s head office is located.
• Secondly, enterprises submit their application documents online via the address: dangkytinhdoanh.gov.vn of the National Business Registration Portal under the Department of Planning and Investment.

Note: Companies must submit the application for temporary suspension of operation at least 03 working days before the date of business suspension (According to Clause 1, Article 206 of the Enterprise Law 2020).

Step 3: Return the result of the application

Within 03 working days from the date of receipt of valid dossiers; The business registration office will return the results. Enterprises will bring the receipt that the Business Registration Office gave earlier to receive the results. On the other hand, businesses can authorize the post office of the province or city to receive the results on their behalf.

If the application is invalid, the enterprise must amend and complete it at the request of the Business Registration Office. Until the profile is valid, the results will be returned.

Procedures for business suspension of a multi-member limited liability company

Step 1: Prepare and draft dossiers:

• Notice of business suspension;
• The decision of the Board of Members on business suspension;
• A copy of the meeting minutes of the Board of Members on business suspension;
• Power of attorney for individuals to carry out the procedures (if enterprises cannot do it themselves);
• Copy of the company’s business registration certificate (if any).

Step 2: Submit your application:

Enterprises may choose one of the two methods below to submit their application:

• Firstly, submit the application directly to the business registration office of the province or city; where the company’s head office is located.
• Secondly, enterprises submit their application documents online via the address: dangkytinhdoanh.gov.vn of the National Business Registration Portal under the Department of Planning and Investment.

Note: Companies must submit the application for temporary suspension of operation at least 03 working days before the date of business suspension (According to Clause 1, Article 206 of the Enterprise Law 2020).

Step 3: Return the result of the application

Within 03 working days from the date of receipt of valid dossiers; The business registration office will return the results. Enterprises will bring the receipt that the Business Registration Office gave earlier to receive the results. On the other hand, businesses can authorize the post office of the province or city to receive the results on their behalf.

If the application is invalid, the enterprise must amend and complete it at the request of the Business Registration Office. Until the profile is valid, the results will be returned.

Suspend the business of an enterprise

Suspending business gets a way for businesses to have time to improve, change, and complete the apparatus to do business more effectively in the future.

In fact, most business owners do not know that when the company suspends business, they have to notify the Department of Planning and Investment where the company located. This notification is mandatory; If not, they will face the risk of an administrative penalty of up to 2 million VND (According to Article 32 of Decree 50/2016/ND-CP).

Additionally, when the enterprise has actually suspended without notifying the business suspension, it will continue to perform the legal obligations regarding:

• Declare and report tax quarterly and annually for the company.
• The tax authority will still conduct periodic inspections of business establishments.
• Obligation to declare and pay compulsory social insurance for employees even though the company has stopped operating in reality;
• Obligation to pay annual license tax even though no longer doing business.

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.

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