Procedures for business suspension of joint stock 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. Each type of company requires a different set of dossiers for the application of business suspension. Therefore, LSX legal firm would like to give you: “Procedures for business suspension of joint stock company in Vietnam”
Legal ground
- Law on Enterprise 2020
Joint-stock company
According to article 11 of the Law on Enterprise 2020:
Article 11: Joint stock companies
1. A joint stock company is an enterprise in which:
a) The charter capital is divided into units of equal value called shares;
b) Shareholders can be organizations and individuals; the minimum number of shareholders is 03; there is no limit on the maximum number of shareholders;
a) A shareholder’s liability for the company’s debts and liabilities is equal to the amount of capital contributed to the company by the shareholder;
d) Shareholders may transfer their shares to other persons except for the cases specified in Clause 3 Article 120 and Clause 1 Article 127 of this Law.
2. A joint stock company has the status of a juridical person from the day on which the Certificate of Enterprise Registration is issued.
3. A joint stock company may issue shares, bonds and other kinds of securities.
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.
Conditions for business suspension
At the time the enterprise registers for business suspension, the enterprise’s tax code must not banned from operation.
If the Tax Department manages to close the enterprise’s tax identification number, the enterprise will have to carry out procedures to restore the closed tax code.
Besides, the enterprise must notify the suspension of business operations to the business registration office at least 03 days before the enterprise suspends.
Procedures for business suspension of joint-stock company
Prepare dossiers for business suspension of a joint-stock company
Firstly, a notice of business suspension;
Secondly, the decision of the Board of Directors on business suspension;
Thirdly, a copy of the meeting minutes of the Board of Directors on business suspension;
Fourthly, power of attorney for individuals to carry out the procedures (if enterprises cannot do it themselves);
Lastly, copy of the company’s business registration certificate (if any).
Ways to apply
Method 1: Submit the application directly to the Business Registration Office of the Department of Planning and Investment of the province or city where the enterprise is located.
Method 2: submitting dossiers online at dangkykinhdoanh.gov.vn
Steps to carry out the procedure
Step 1: Prepare a complete set of dossiers as mentioned above.
Step 2: Submit an online application to the Business Registration Office of the Department of Planning and Investment. The specialist will check that the application is complete with the required documents, receives the application, and then issues a receipt for the business.
Step 3: The Business Registration Office checks the validity of the application and processes the enterprise’s application.
Step 4: Based on the appointment date on the Receipt, the enterprise goes to the Business Registration Office to receive the results of the application.
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
Procedures to establish representative office of a LLC in Vietnam
Current regulations on business suspension in Vietnam
How long can a business suspend under Vietnamese legislation?
Related questions
At the end of the business suspension period, businesses will return to normal operations, and the national business registration website will automatically update without the need to do any formalities.
If the enterprise is in the period of registration for business suspension and considers it eligible to resume operation; Businesses can register to resume operations before the suspension period ends. At the same time, they must perform the obligation to notify the business registration office at least 15 days before the resumption of operation.
At present, there are three ways to apply for company registration:
Firstly, submit directly at the business registration office where the company’s headquarters is located.
Secondly, submit business registration documents by post office.
Thirdly, submit online through the electronic portal.
Contact LSX
Finally, hope this article is useful for you to answer the question about “Procedures for business suspension of joint stock company in Vietnam”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
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