Currently, during the Covid-19 pandemic, many business establishments face difficulties leading to bankruptcy. They need time off from their business to avoid future damage. Thus, many business owners decided to carry out procedures for business suspension. So, in this article LSX Legal firm will give you information about: “Procedures for business suspension in Vietnam 2022”
Legal grounds
- Law on Enterprise 2020
- Decree 47/2021/ND-CP
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.
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.
Procedures for business suspension
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 business located.
Method 2 – Submit the application for business suspension online in 4 steps as follows:
- Firstly, Register an account at the National Business Registration Portal;
- Secondly, Enter complete profile information into the business registration system;
- Thirdly, Scan and attach the file to the system;
- Fourthly, Confirm and submit the application.
Note: When submitting the online business suspension application, after the application valid, you have to bring the receipt and the power of attorney to the Business Registration Office to get the results.
Procedures for suspending business online
Step 1: Prepare dossiers.
Documents you are about to register for business suspension include:
- Notice of business suspension of the enterprise, branch, representative office, or business location (according to the form prescribed by law). Note that this is the original and the quantity is 01 copy.
- Decision and copy of meeting minutes of the Board of Members for limited liability companies with two or more members and partnerships. Decision and copy of meeting minutes of the Board of Directors for joint-stock companies. The decision of the company owner for a single-member limited liability company on business suspension.
- Power of attorney in case of authorized individuals to carry out online business suspension registration procedures. The power of attorney must be signed by a competent authority.
Step 2: Enter complete profile information into the business registration system.
In the submission method section, click “Submit an application for business registration account”.
Next, in the “Select type of online registration” section, click “Register for changes in business registration contents/subsidiaries”
Then, enter the business code. At this time, the screen will display information about the information that owners need to register.
Note: fill in the full business code, and internal code in the system
- Select the registration type of the business as “Suspended from operation”.
- Declare the dossiers in the business suspension application.
- Then, confirm the registration information.
At this point, the data block on business suspension appears. Please select the start time, end time, and reason for suspending the business.
Also, fill in all information in the Contacts section, Notice of business suspension, Decision of the General Meeting of Shareholders, and Minutes of the meeting.
- Finally, choose a digital signature or authentication method. Then click on the confirmation.
Step 3: Scan the profile
You need to present the original text listed above as an electronic document that has the same value as the paper document.
An electronic document is a document in the form of a data message created or digitized from a paper document and accurately and completely represents the content of a paper document. Electronic documents can be in “.doc” or “.docx” or “.pdf’ format.
The name of the electronic document must correspond to the name of the document in the paper file.
Persons authorized to sign documents in the dossier can use digital signatures to sign directly on electronic documents or sign directly on paper documents and scan (scan) paper documents in the above formats.
Step 4. Confirm and submit the application.
Lastly, confirmation of the application by the competent authority after receiving your application. And within a certain period of time, you will receive a notification of accepting or not accepting the suspension of the business you requested.
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
Can businesses in Vietnam that use free tour guides be fined?
Suspend business for more than 2 years under Vietnamese legislation
Do property rentals in Vietnam require business registration?
Related questions
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).
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).
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.
Contact LSX
Finally, hope this article is useful for you to answer the question about “Procedures for business suspension in Vietnam 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 in Vietnam 2022. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
