Facing the impact of the Covid-19 epidemic, many businesses have decided to suspend business for a while. At present, companies and individuals can carry out the procedures for business suspension quickly. However, not everyone understands clearly the dossiers and steps for this procedure due to the different characteristics of each business type. Therefore, LSX legal firm will give you a guideline in this article: “Procedures for business suspension of partnership in Vietnam”
Legal ground
- Law on Enterprise 2020
What is a Partnership Company?
According to the Law on Enterprise 2020:
Article 177. Partnerships
1. A partnership is an enterprise in which:
a) There are least 02 partners that are joint owners of the company and do business under the same name ((hereinafter referred to as “general partner”). There can be limited partners in addition to general partners;
b) A general partner shall be an individual whose liability for the company’s obligations is equal to all of his/her assets;
c) A limited partner can be an organization or an individual whose liability for the company’s debts is equal to the promised capital contribution.
2. A partnership has the status of a juridical person from the day on which the Certificate of Enterprise Registration is issued.
3. A partnership must not issue any kind of securities.
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
- At the time the enterprise registers to suspend its operation, the enterprise’s tax code must not banned.
- The enterprise must notify of the suspension of its operation to the business registration office at least 03 days before the business suspension.
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).
Ways to submit the application
3 methods to submit the application to suspend business for a partnership:
Firstly, Submit the application directly to the Business Registration Office of the Department of Planning and Investment of the province where the company’s head office located;
Secondly, Submit application via postal service;
Thirdly, Submit your application online via: dangkykinhdoanh.gov.vn
Steps to carry out the procedures for business suspension of a partnership
Step 1: prepare dossiers for the application
Business needs to prepare dossiers according to regulations to suspend business.
Step 2: Submit a business suspension application to the Department of Planning and Investment.
Your business needs to submit a set of dossiers according to the above instructions to the Business Registration Office – Department of Planning and Investment where the business located.
The Business Registration Office then hands over the application receipt to the enterprise after receiving the notice of business suspension.
Step 3: Receive results
- Within 02 working days, the Department of Planning and Investment will send information to the tax authority to compare the tax owed or not.
- Within 03 working days from the date of receiving the valid application, the Business Registration Office shall issue a Certificate of the enterprise’s business suspension registration.
Submit dossiers 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 prepare valid documents.
Step 2: Submit your application online at: https://dangkykinhdoanh.gov.vn (enterprise must have a business registration account). The enterprise sends a notice to the Business Registration Office where the enterprise has registered its business operation at least 03 working days before the date of business suspension.
Step 3: Within 03 working days after receiving the valid application, the Business Registration Office will send a receipt to the enterprise.
- Application valid: Received a certificate of business suspension.
- Application invalid: The business registration office sends a notice requesting amendments and supplements (return to step 2).
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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Decision form to suspend business for joint-stock company in Vietnam
Related questions
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 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.
Clause 1, Article 66 of Decree No. 01/2021/ND-CP stipulates that the business suspension period must not exceed 01 year. The enterprise must send a notice to the Business Registration Office where the enterprise headquartered 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.
Contact LSX Law Firm
Finally, hope this article is useful for you to answer the question about: “Procedures for business suspension of partnership in Vietnam”. If you need any further information, please contact LSX Law firm : +84846175333 or Email: [email protected]
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