When a business suffers a loss or there is a structural change, company suspension is one of the best solutions for businesses to stop operating business for a certain period of time. When registering to suspend the business, we must prepare a set of dossiers to suspend the company in accordance with the law. However, depending on the type of business, the composition of the business suspension application will differ. So, LSX legal firm provides this article to help you understand the regarding regulations better: “Prestige and quickly dossiers to suspend business in Vietnam”
Legal grounds
- Law on Enterprise 2020
- Decree 01/2021/ND-CP
Dossiers for business suspension
Depending on the type of business, the composition of the business suspension application will differ. However, the application for temporary suspension of any type of enterprise must include the Notice of business suspension made according to the form Appendix II-19 in Circular 01/2021/TT-BKHDT. The remaining components of the application will depend on the type of business.
Dossiers to suspend business for 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).
Dossiers to suspend business for 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).
Dossiers to suspend business for 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).
Dossiers to suspend business for 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).
Dossiers to suspend business for 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 (if any).
Deadline for submission of application for temporary suspension of the company
According to Clause 1, Article 206, Enterprise Law 2020 and Clause 1, Article 66, Decree 01/2021/ND-CP:
In case the enterprise suspends business, the enterprise must send a written notice to the Business Registration Office of the Department of Planning and Investment where the enterprise is headquartered at least 03 working days before the date of business suspension.
Do suspended enterprises pay employees’ wages?
Under Clause 3 of Article 206 above, for employees during the business suspension, Enterprises must reach an agreement with them on the rights, jobs (such as paying wages while waiting for business re-opening), suspending contract performance because of the company’s business suspension, etc.
Therefore, during the temporary suspension of business, the employee must enjoy certain benefits on the basis of an agreement with the employer. Negotiate the salary waiting for work, waiting for the business’s return to operation time. Or agree to wait for the end of the next working term, certain allowances and incentives.
Therefore, in the case when you quit your job during the company’s suspension of business; then the company must proceed to pay the salary for you while waiting to work in accordance with the law.
If the company cuts your salary during the business suspension period, it is against the law. Accordingly, you can appeal to the business owner; or the company’s board of directors.
Lastly, if the company does not resolve the appeal, you can go to the third agency; that is the People’s Court to conduct lawsuits according to the civil procedure law of Vietnam
Do suspended enterprises pay social insurance?
As mentioned above, during the business suspension, the enterprise must complete the performance of the contract signed with the employee; unless there are other agreements between the enterprise and the employee.
Therefore, enterprises must continue to pay social insurance for employees if the enterprise has no other agreement with the employee. If the employee and the employer have an agreement not to pay social insurance during the business suspension period, the settlement will be different.
In another word, in case the company has no agreement with the employee but requires the employee to pay 100% of the insurance premium, including the amount that the employer must pay; is against the law.
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
Current regulations on business suspension in Vietnam
Detailed instructions to suspend business online in Vietnam
Suspending business for the second time quickly in Vietnam
Related questions
During the suspension period, the enterprise shall fully pay the unpaid taxes, social insurance, health insurance, unemployment insurance premiums and fulfill contracts with its clients and employees, unless otherwise agreed by the enterprise, creditors, clients and employees.
If the taxpayer does not incur tax obligations during the period of business suspension, then the taxpayer not required to submit a tax return. In contrast, if the business does not take the full calendar year or fiscal year off, it still has to submit the annual tax finalization file.
Usually, businesses declare reasons such as objective factors, business processes, need for improvement, etc.
Contact LSX
Finally, hope this article is useful for you to answer the question about “Prestige and quickly dossiers to suspend business in Vietnam”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
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