When facing difficulties during business operations, many businesses choose to suspend their business in order to continue doing business in the future. The law stipulates that an enterprise may suspend its business for 1 year. However, many companies can not find a way to manage the situation after the period of suspension expired, so they want to continue to suspend their business. Therefore, in this article LSX legal firm gives you a guide: “Procedures for extension of business suspension in Vietnam”
Legal grounds
- Law on Enterprise 2020
- Decree 01/2021/ND-CP
- Circular 01/2021/TT-BKHDT
Is it possible to extend the suspension of business?
“Suspension of business” means the legal status of an enterprise when temporarily suspending its business in accordance with the law for a certain period of time. During this time, the business still exists. However, they can not carry out any other transactional business activities.
Besides, Clause 1, Article 66 of Decree No. 01/2021/ND-CP stipulates:
“Article 66. Registration of business suspension and resumption of business ahead of schedule
- When an enterprise or its branch/representative office/business location suspends its business or resumes its business ahead of schedule, the enterprise shall send a notification to the Business Registration Office of the province where the enterprise or its branch/representative office/business location is located at least 03 days before the planned date of suspension or resumption. If the enterprise or its branch/representative office/business location is still suspended after the notified suspension period, another notification must be sent to the Business Registration Office at least 03 days before the planned date of suspension. Each notified suspension period must not exceed one year.”
Thus, the enterprise can extend the business suspension when the previous notice period of business suspension has expired.
How many times can an enterprise suspend its business?
As mentioned above in Clause 1 of Article 66 (Law on Enterprise 2020):
- In case the enterprise or its branch/representative office/business location still wants to suspend the business after the suspension period of the previously notified expired. Then they have to send another notification to the Business Registration Office at least 3 days before the next suspension (Each notified suspension period must not exceed one year).
Thus, after the end of the business suspension period, the enterprise has the right to continue to suspend business when it has the need to suspend. The mandatory condition when suspending an enterprise for the next time is to notify within 03 working days of the business registration office where the enterprise’s head office is located.
According to the new provisions of the Law on Enterprise 2020, from January 1, 2021, enterprises are not limited to the number of times they can suspend their business, but each time of suspension cannot exceed 01 year.
Dossiers for extension of business suspension
Dossiers for extension of business suspension specified in Decree 01/2021/ND-CP. Each type of company will have to prepare a different set of dossiers. However, the application profile includes:
- Notice of business suspension according to Appendix II-19 Circular 01/2021/TT-BKHDT;
- The resolution, decision, and copy of meeting minutes on business suspension of the Board of Members for limited liability companies with two or more members, partnerships;
- The resolution, decision, and copy of meeting minutes on business suspension of the Board of Directors for joint-stock companies;
- On the other hand, resolution, decision of the company owner on business suspension for single-member limited liability companies;
- Lastly, power of attorney (if authorizing an individual/organization to carry out procedures for business suspension).
Procedures for extension of business suspension
Prepare and submit the application
Enterprises who want to extend the temporary suspension of business prepare 01 set of the above mentioned dossiers. This application signed and duly stamped by the members/shareholders of the company.
The legal representative of the company or an authorized person shall submit 01 application for a notice of suspension of operation to the Business Registration Office (under the Department of Planning and Investment) where the enterprise, branch, or representative office located at least 03 working days before the date of business suspension.
The competent agency receives and processes the application
After receiving the application, the Business Registration Office will give a receipt, check the validity of the application, and issue a certificate of the temporary suspension of registration of the enterprise, branch, representative office, or business location within 03 working days from the date of receiving the application.
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
Regulations on the right to establish and manage enterprises in Vietnam
Conditions for setting up an enterprise in an export processing industrial park in Vietnam
Penalties for violation of the working time of enterprises in Vietnam
Related questions
After receiving the application, the Business Registration Office hands over the receipt, checks the validity of the application and issues:
Certificate of business suspension registration;
– Certificate of business resumption registration before the announced deadline.
The Business Registration Office updates the legal status of enterprises in the National Business Registration Database to the status of suspended business.
The enterprise must send a notice to the business registration office where the enterprise has registered at least 03 days before the business suspension. The content of the notice includes the name, address of the enterprise, duration of the business suspension, and reason for business suspension.
After receiving the enterprise’s application, the Business Registration Office will process the application within 3 working days to give the result.
– Notice of business suspension;
– Decision of the Board of Directors on business suspension;
– A copy of the meeting minutes of the Board of Directors on business suspension;
– Lastly, power of attorney for individuals to carry out the procedure (if they cannot do it themselves);
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 extension of business suspension in Vietnam”. If you need any further information, please contact LSX Law firm: +8
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