Conditions for business suspension of joint-stock company in Vietnam
Suspension of business of a joint-stock company means the temporary suspension of business activities by the company for a specified period of time. Before suspending business, enterprises need to notify the competent authority. Many reasons may lead to the company having to temporarily stop operating such as facing difficulties in financial, labor, etc. If you are wondering about the conditions for the business suspension of a joint-stock company, follow this article of LSX legal firm: “Conditions for business suspension of joint-stock company in Vietnam”
Legal ground
- Law on Enterprise 2020
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 of joint-stock company
Firstly, at the time the enterprise registers for business suspension, the enterprise’s tax code must still in operation (not closed by the competent authorities).
In fact, many established businesses do not do business at their registered headquarters; or do not operate any business in reality and therefore do not file a tax return.
For violations like that, the Tax Department will close the tax code of these businesses. Therefore, if you want to complete the registration procedure for temporary suspension of business, the business will first have to carry out the procedure to restore the closed tax code.
Besides, enterprises must notify about the suspension of business operations to the business registration office at least 03 days before the business suspension. For example, on September 15, the business stopped operating; No later than September 12, the enterprise will have to send a notice of suspension to the Business Registration Office where the company located.
Dossiers for business suspension of 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
Procedures for business suspension of joint-stock company
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.
Submit dossiers for business suspension online
To submit a dossier of business suspension online, enterprises follow the following order:
Step 1: Prepare a set of business suspension dossiers corresponding to the type of business and prepare valid documents.
Step 2: Submit your application online at: https://dangkykinhdoanh.gov.vn (enterprise must have a business registration account). The enterprise sends a notice to the Business Registration Office where the enterprise has registered its business operation at least 03 working days before the date of business suspension.
Step 3: Within 03 working days after receiving the valid application, the Business Registration Office will send a receipt to the enterprise.
- Application valid: Received a certificate of business suspension.
- Application invalid: The business registration office sends a notice requesting amendments and supplements (return to step 2).
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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Related questions
According to the provisions of the Law on Enterprise 2020, enterprises that are in the period of registration for temporary suspension of operation can register to resume operation before the deadline, but must perform the obligation to notify the business registration office in advance. when working again.
The notice period of enterprises before officially suspending business is 03 days.
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.
Contact LSX
Finally, hope this article is useful for you to answer the question about “Conditions 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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