In the process of doing business, many businesses have to temporarily suspend operations for many objective reasons. However, many people still do not fully understand the term “business suspension” and its time limit prescribed by the law. Therefore, in this article LSX legal firm would like to introduce: “How long can a business suspend under Vietnamese legislation?”
Legal grounds
- Law on Enterprise 2020
- Decree 01/2021/ND-CP
Business suspension
Suspending business means an enterprise carrying out administrative procedures with the business registration authority as well as the competent authority for the purpose of not doing business for a certain period of time.
This means that the enterprise does not carry out any production or business activities during the temporary shutdown. Also, do not sign contracts with partners and customers, not issue invoices, and do not have to declare and finalize tax when it comes to the final settlement period.
Currently, there are many different reasons leading to enterprises having to decide to suspend their business such as enterprises having financial and human resource difficulties and cannot continue to operate, enterprises having new orientations in their business structure, or corporate organization…
Besides, enterprises must suspend business operations when they no longer satisfy business conditions; according to regulations at the request of the business registration agency; or other competent authority.
When an enterprise wishes to suspend its business, it must carry out procedures for business suspension and notify the suspension to the business registration office and tax agency that directly manage the business.
How long can a business suspend?
Suspending a business is an unwanted event for business owners as enterprises are not allowed to carry out any production activities during the business suspension period.
According to Clause 1, Article 66 of Decree No. 01/2021/ND-CP: The business suspension period must not exceed 01 years.
The enterprise must send a notice to the Business Registration Office – where the enterprise headquarter takes place at least 03 working days before the date of business suspension.
In case an enterprise wishes to continue suspending business after the notice period expires, it must notify the Business Registration Office at least 03 working days before the date of resumption of business suspension.
Maximum business suspension time?
After the end of the business suspension period, if the business continues to suspend, it must send a second notice to the Business Registration Office.
- The total time to suspend business in consecutive times must not exceed 2 years.
- After receiving the correct dossiers in accordance with the current law; within 3 working days, the Business Registration Office has to settle the application.
Dossiers for business suspension
Dossiers for business suspension for a Joint-stock company:
- Notice of business suspension;
- Decision and copy of meeting minutes of the Board of Directors on business suspension;
- Authorization letter for the individual to carry out the procedure (if not self-implemented);
- Copy of the company’s business registration certificate (if any).
Dossiers for business suspension for a limited liability company:
- Notice of business suspension;
- Decision and copy of meeting minutes of the company owner on business suspension (for Single-member limited liability companies);
- Decision and copy of meeting minutes of the Board of Members on business suspension (for limited liability companies with two or more members);
- Power of attorney for the individual to carry out the procedures (if they cannot do it themselves);
- Copy of the company’s business registration certificate (if any).
Submit application 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 ensure their validity.
- Step 2: Submit your application online at: https://dangkykinhdoanh.gov.vn (enterprise must have a business registration account). Besides, enterprises must send a notice to the Business Registration Office no later than 03 working days before the date of business suspension.
- Step 3: Within 03 working days after receiving complete dossiers. The Business Registration Office will send a receipt to the enterprise.
Where to submit application for business suspension?
After fully preparing valid dossier components; the enterprise shall submit an application 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.
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
The content of the notice includes:
Name, head office address, tax identification number;
Firstly, The business suspension period, the start date and the end date of the suspension period;
Secondly, Reason for business suspension;
Thirdly, Full name and signature of the legal representative of the enterprise, the representative of a group of business individuals or the owner of the business household.
Enterprises can suspend business in parallel with completing tax obligations in case the tax code is not locked.
Under the Vietnamese law on accounting, the financial statement in Vietnam must include the following:
– Firstly, Balance sheet
– Secondly, Profit and loss
– Thirdly, Cash flow
– Lastly, Note of financial statement
Contact LSX
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