Procedures for business suspension for the second time Vietnam (2022)
Suspension of business is when enterprises suspend their operations of production and business for a certain period of time. The Enterprise Law 2020 allows enterprises to suspend their business many times. Although this solution is not desirable, it provides an opportunity for businesses to get through hard times and find new flow directions. How is the second business suspension procedure done, is there any difference compared to the first time? LSX law firm provides this article to inform the “Procedures for business suspension for the second time in 2022”.
Regulations on business suspension for the second time
According to Article 57 of Decree No.78/2015/ND-CP on Enterprise Registration:
- In case an enterprise or a branch, representative office, or business location suspends its business or resumes its business ahead of the notified schedule, it shall send to the business registration section with which the enterprise or its branch, representative office, or business location has made registration at least 15 days before the date of business suspension or resumption.
- The business suspension period must not exceed one year. After this notified period, if the enterprise or its branch, representative office, or business location still suspends its business, it shall send another notice thereof to the business registration section. The total period of continuous business suspension must not exceed two years.
Thus, after the expiration of the business suspension period, if the enterprise wants to continue to suspend its business, it must submit a notice of business suspension to the business registration office.
Dossier of suspending business for the 2nd time
Individuals and organizations believe that preparing documents and dossiers is the most difficult step for the business suspending procedure. This is because the records must ensure absolute accuracy, and each type of business (shareholding, limited liability, partnership, etc.) has different requirements. Meanwhile, each website mentions separate information on the internet about the records, leading to unclear research for people preparing documents.
Information about the records for suspension of business is specified clearly in Decree 78/2015/ND-CP:
- Notice of business suspension of the company for the second time (by sample);
- Minutes of meetings of the Board of members (LLCs with 2 or more members); Minutes of the meeting of the company’s shareholders (joint-stock company);
- The decision of the company owner on business suspending (1-member limited liability company);
- The decision of the Board of members (LLCs with 2 or more members); Decision of the Administrative Council of the company (Joint-stock company);
- Power of attorney or authorization contract for an individual/organization to carry out business suspension procedures;
The latest 2nd business suspension procedure in 2022
To continue suspending business for the second time, enterprises need to perform the following:
Step 1: Prepare and submit dossiers
- Enterprise: The enterprise prepares the documents for suspension as instructed above. Then submits the documents online to the registration authority to proceed with business suspension.
Enterprises submit dossiers by either of two methods:
- Filed at the One-Stop Department of the Business Registration Office of the Department of Planning and Investment (BUSINESS REGISTRATION Office) of the province/city where the enterprise’s head office is located;
- Submit the dossiers online at the National Business Registration Portal at: https://dangkytinhdoanh.gov.vn (Businesses with headquarters in Hanoi and Ho Chi Minh City are required to submit the dossiers in this formality).
Step 2: Settlement of documents
- The Business Registration Office handles and verifies the form and content of the documents;
- Complete the results of the settlement and update the status of the documents on the online database so that the enterprise can update the status of the documents within 3 working days.
Step 3: Receiving the result
- In case the dossier is conformed to regulation, the enterprise will submit the paper form to the Business Registration Office to receive the result.
- In case the dossier needs to be amended or supplemented, the enterprise will amend and supplement the dossier at the request of the registrar.
Related Articles
Service of temporary business suspension for companies and enterprises in Vietnam
Things you need to know when suspending a business
Enterprise dissolved or suspended business in Vietnam
Related Questions
According to the old regulations, the maximum duration of business suspension is 2 years. However, Decree 01/2021/ND-CP no longer stipulates this provision. Therefore, each time suspending business is up to 1 year. However, businesses can suspend their business many times in a row (no time limit).
In case the subjects are not enterprises: Taxpayers are entitled to suspend their operations of the business for no more than 1 year for 1 registration. In case the taxpayer is an organization, the total period of suspension of business shall not exceed 2 years for 2 consecutive registrations.
Contact LSX Law Firm
Finally, hope this article is useful for you to answer the question about: “Procedures for business suspension for the second time in 2022”. If you need any further information, please contact LSX Law firm : +84846175333 or Email: [email protected]
Conclusion: So the above is Procedures for business suspension for the second time Vietnam (2022). Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
