According to the current economic situation, not every business can maintain its business operations. When the business faces a difficult financial situation, not yet have a viable business plan, then the business owner can choose to suspend the operation of the business. For this case, LSX legal firm provides: “Service of suspending business in Gia Lam district, Vietnam”
Legal ground
- Law on Enterprise 2020
Business suspension
Suspension of business is simply understood as the operation of temporarily shutting down business for a maximum period of time prescribed by law. At this time, the business still exists but is not allowed to sign contracts, issue invoices, or any other business activities that generate transactions.
This legal act is different from dissolution because if dissolved, the business will terminate its business activities as well as legal status. Suspending a business simply means “taking a break” for a while and then continuing to operate. At the end of the maximum “rest” period permitted by law, if the enterprise does not continue to operate, it must carry out procedures for dissolution or transfer.
Enterprises have the right to suspend their business. However, enterprises can only exercise this right when they meet certain conditions as prescribed by law. This includes notification procedures for public authorities and related financial obligations. The right to suspend business regulated in Article 206 of the Enterprise Law 2020:
Article 206. Business suspension and termination
3. During the suspension period, the enterprise shall fully pay the unpaid taxes, social insurance, health insurance, unemployment insurance premiums and fulfill contracts with its clients and employees, unless otherwise agreed by the enterprise, creditors, clients and employees.
Why should you choose to suspend your business instead of dissolution?
Firstly, about the cost:
The cost of suspending the business will always be cheaper than the cost of dissolving the company. The suspension does not have to completely stop the operation, so you don’t have to worry about the tax and related obligations to the state in the process of suspension. Normally, the cost of dissolving a company will be 5-10 times more expensive than suspending it.
Secondly, the existence of the company:
While dissolution means the permanent termination of a company’s operations, suspension just stops doing business for a while. Therefore, temporarily suspending business will benefit better for clients who have the need to continue business in the future. Then we will have a senior company ready to operate instead of having to establish a new company.
Thirdly, sell the company:
Many people choose to sell their companies. Currently, buying and selling companies is quite simple because many people want to buy a company to operate, participate in the bidding, etc. Suspending business creates a way to find a partner for a “company” transaction that you no longer need.
Conditions for suspending business
Every business has the right to suspend business. However, they must send a written notice to the Business Registration Office no later than 03 working days before the date of business suspension or resumption of business before the notified time limit.
An enterprise suspends business in two cases:
- Suspension of business at the discretion of the enterprise.
- Suspend business at the request of the Business Registration Authority, or the competent authority requests the enterprise to suspend the business in conditional lines or professions as prescribed.
Besides, during the business suspension period, the enterprise must pay the full tax amount, social insurance, health insurance, and unemployment insurance owed. Also, continue to pay debts and complete the performance of signed contracts with customers and employees. Except for enterprises; creditors; Customers and employees have other agreements.
Business suspension dossiers
Due to the difference in the type of business, the composition of the online business suspension application of each type of company has slightly different, specifically:
Dossier of 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).
Dossier of a Multi-member Limited Liability Company
- 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).
Dossier of a Single-member Limited Liability Company
- Firstly, notice of business suspension;
- Secondly, decision of the business owner on business suspension;
- Thirdly, power of attorney for individuals to carry out the procedures (if enterprises cannot do it themselves);
- Fourthly, copy of the company’s business registration certificate (if any).
Dossier of 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).
Dossier of a Joint-stock company
- Firstly, notice of business suspension;
- Secondly, decision of the Board of Directors on business suspension;
- Thirdly, a copy of the meeting minutes of the Board of Directors 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.
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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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.
Enterprises must reach an agreement with employees on the rights, jobs (such as paying wages while waiting for business re-opening), suspending contract performance because of the company’s business suspension, etc.
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. The enterprise shall send a notice to the Business Registration Office where the enterprise has registered its business activities at least 03 working days before the date of business suspension.
Step 3: Receive the result
Within 03 working days after receiving the complete and valid application for suspension. The Business Registration Office will return the results to the business.
Contact LSX
Finally, hope this article is useful for you to answer the question about “Service of suspending business in Gia Lam district, Vietnam”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
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