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 prepare certain dossiers prescribed by the law. If you do not understand clearly about the regulation, this may confuse you. So, in this article LSX legal firm would like to give you an insight into: “Latest business suspension dossiers 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
When suspending business, you need to pay attention to the following conditions:
Firstly, at the time the enterprise registers to suspend its operation, the enterprise’s tax code must 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 complete tax return.
When violations as above appear, the Tax Department will close the tax code for these businesses. So want to do the registration procedure to suspend the business; Your business will have to carry out the procedure of recovering a closed tax code first.
Secondly, the enterprise must notify the business registration office of the temporary suspension of its operation at least 03 days before the enterprise suspends its operation.
For example: on September 15, the business temporarily 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 is located.
Dossiers for business suspension
To carry out the business suspension procedure. Your business must fully prepare the following documents:
firstly, Notice of business suspension. The notice must bear the signature of the legal representative of the enterprise and the seal of the enterprise.
Also, the notice must contain the following information:
- Company name
- Company ID
- Tax code
- Registered business lines
- Term and reason for suspension
Secondly, the power of attorney for the person to submit the notice on behalf of the enterprise in case the legal representative of the enterprise does not submit it directly.
Thirdly, the Decision to suspend business:
- For a sole proprietorship or a single-member limited liability company, the owner makes the decision.
- In the case of a limited liability company with 2 or more members, the Board of Members makes the decision. Also, a copy of the meeting minutes of the Board of Members recognized by the law.
- In a Joint Stock Company, the decision-making will belong to the Board of Directors. A valid copy of the meeting minutes of the Board of Directors must be submitted.
- For a partnership, the general partners in the company have the right to make the decision. In addition to the decision, the company must attach a copy of the minutes of the meeting.
Dossiers for business suspension of each company type in Vietnam
Due to the difference in the type of business, the composition of the online business suspension application of each type of company has slightly different, specifically:
Dossier of a Sole Proprietorship
- Firstly, notice of business suspension;
- Secondly, power of attorney for individuals to carry out the procedures (if enterprises cannot do it themselves);
- Thirdly, copy of the company’s business registration certificate (if any).
Dossier of a Multi-member Limited Liability Company
- Firstly, notice of business suspension;
- Secondly, decision of the Board of Members on business suspension;
- Thirdly, a copy of the meeting minutes of the Board of Members 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).
Dossier of a Single-member Limited Liability Company
- Firstly, notice of business suspension;
- Secondly, decision of the business owner on business suspension;
- Thirdly, power of attorney for individuals to carry out the procedures (if enterprises cannot do it themselves);
- Fourthly, copy of the company’s business registration certificate (if any).
Dossier of a Partnership
- Firstly, notice of business suspension;
- Secondly, decision of the Board of Members on business suspension;
- Thirdly, a copy of the meeting minutes of the Board of Members 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).
Dossier of a Joint-stock company
- Firstly, notice of business suspension;
- Secondly, 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.
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
Conditions for business suspension of joint-stock company in Vietnam
Certificate of business suspension of business in Vietnam
Procedures for business suspension in Vietnam 2022
Related questions
Notice of business suspension of business households;
Authorization letter for the person to submit the application and receive the result if it is not an individual, group of individuals, or the representative of the household that directly carries the procedures themselves.
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.
The notice must bear the signature of the legal representative of the enterprise and the seal of the enterprise. The notice must have full information such as: Enterprise name, enterprise identification number, tax identification number, registered business lines, suspension duration, reason for suspension.
Contact LSX
Finally, hope this article is useful for you to answer the question about “Latest business suspension dossiers in Vietnam”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
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