Procedures for business suspension of Sole Proprietorship in Vietnam
Facing the brink of bankruptcy, businesses must consider the actual situation with their ability to operate. If they still have enough finance to maintain the business operation of the enterprise after a difficult period, they can carry out procedures for business suspension. 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 Sole Proprietorship in Vietnam”
Legal ground
- Law on Enterprise 2020
Sole Proprietorship
According to article 118 of the Law on Enterprise 2020:
Article 188. Sole proprietorships
1. A sole proprietorship is an enterprise owned by a single individual whose liability for its entire operation is equal to his/her total assets.
2. A sole proprietorship must not issue any kind of securities.
3. An individual may only establish one sole proprietorship. The owner of a sole proprietorship must not concurrently own a household business or hold the position of general partner of a partnership.
4. A sole proprietorship must not contribute capital upon establishment or purchase shares or stakes of partnerships, limited liability companies or joint stock companies.
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 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).
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 sole proprietorship
Prepare a complete and valid set of dossiers for the application
Then, Submit your application by one of the three methods above.
Lastly, Within 3 working days from the date of receiving the Receipt, the applicant will receive a notification result of the consideration of business suspension.
Procedures for suspending business of a sole proprietorship online
Step 1: Prepare dossiers.
Prepare the needed dossiers as mentioned above.
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
Suspend business for more than 2 years under Vietnamese legislation
Does suspended business have to pay license tax in Vietnam?
How long can a business suspend under Vietnamese legislation?
Related questions
Enterprises: Taxpayers are entitled to suspend their operations of the business for no more than 1 year/each time. Organization: the total period of suspension of business shall not exceed 2 years for 2 consecutive registrations.
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).
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).
Contact LSX
Finally, hope this article is useful for you to answer the question about “Procedures for business suspension of Sole Proprietorship in Vietnam”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
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