During the operation, the business household may suspend its business for a permitted period of time. However, to suspend the business, business households have to carry out procedures for business suspension prescribed by the law. Besides, not everyone understands the regulations regarding the business suspension of a business household. So, in this article LSX legal firm would like to give you an insight into: “Suspension of business household under Vietnamese legislation”
Legal grounds
- Law on Enterprise 2020
- Decree 01/2021/ND-CP
Business household
Business household registered by an individual or household members; take responsibility for all their assets for the business operations of the household.
In case household members register as business households, they shall authorize one member to act as the business household representative.
For individual registering business households, in another word, the person authorized by household members to act as the business household representative is the owner of the business household.
Further information:
Legal status: does not have legal status.
Member: Business household registered to be established by an individual or household members.
Business Location: A business household can operate at many locations, but must choose one location to register its head office. Also, Business households must notify the tax administration agency, the market management agency where they conduct business for the remaining business locations.
Business scale: Small scale, personal and household nature.
Invoice: Only direct sales invoices and can not issue VAT invoices (red invoices).
Seal: Does not have the seal of the business.
Tax:
- License tax: Revenue over 100 million VND to 300 million VND: 300k/year; Revenue over 300 million VND to 500 million VND: 500k/year; Revenue over 500 million: 1 million/year.
- Personal income tax: Depending on each industry and business line, the tax rate ranges from 0.5% to 2%.
- Value-added tax: Depending on each industry or business line, the tax rate ranges from 1% to 5%.
Procedures: Simple establishment procedure, easy tax declaration, and payment.
Business suspension of business household
Suspending a household business operation is a form of temporarily stopping the business operation of household business. When it wants to continue operating, the business household can announce its resumption of operation later. In case of business suspension for 30 days or more, business households must notify the business registration office of the district where they have registered their business and the tax agency directly managing them.
Dossiers to suspend business
The business household suspending business shall send a written notice to the business registration office of the district where the business household has registered at least 15 days before the business suspension. The business registration office of the district shall hand over the application receipt to the applicant after receiving the business household’s notice of business suspension. The notice of business household’s suspension of business activities:
- Business household registration information: Name, certificate number, issuing agency, date of issue, etc.
- Business suspension period: Start and end date of suspension
- Reasons for temporary suspension of household business.
- Full name and signature of the legal representative of the business household
- Also, Business registration certificate of household business (original).
Within 03 working days from the date of receipt of valid dossiers; the business registration authority of the district shall issue a certificate of the business household’s registration of business suspension to the business household.
Violation of regulations on business suspension notice
Business households that violate regulations on notification of business suspension may be subject to a warning or a fine of between VND 500,000 and 2,000,000; also, they may have the business household registration certificate revoked.
Article 42 of Decree 50/2016/ND-CP stipulates:
Article 42. Violations against regulations on business household suspension
2. A fine of VND 1,000,000 – VND 2,000,000 shall be imposed for any of the following violations:
a) Failure to inaugurate the business within 06 months from the issuance date of the certificate of business household registration;
b) Suspending the business for more than 6 consecutive months without notifying the business registration authority of the district.
On the other hand, a business household may have its business household registration certificate revoked in the following cases:
- Failure to conduct business activities within 06 months; from the date of being granted the Certificate of business household registration;
- Suspending business activities for more than 06 consecutive months without notifying the business registration office of the district where it registered.
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
Notice form of business suspension for business household in Vietnam
Procedures for business suspension of business household in Vietnam
Establish company or business household in Vietnam?
Related questions
It isn’t. Business household does not have a seal, cannot open branches or representative offices, do not have the rights that enterprises have such as import-export activities or apply the Law on Bankruptcy when the business makes a loss.
Business household registered by an individual or household members; take responsibility for all their assets for the business operations of the household.
In case household members register as business households, they shall authorize one member to act as the business household representative.
For individual registering business households, in another word, the person authorized by household members to act as the business household representative is the owner of the business household.
Step 1: Prepare dossiers
Notice of business suspension of business household;
A copy of the minutes of the meeting of household members on the registration of business suspension in case the household members register as a business household;
In case of authorization: A written authorization for the individual to submit the application and receive the results according to the provisions of law; A valid copy of the authorized person’s individual identification papers.
Step 2: Submit dossiers
The business household shall submit its application at the district-level business registration office where it has registered its business.
Step 3: Receive results
After receiving the notice, the business registration authority of the district shall hand over the receipt to the business household. Then, within 03 working days from the day on which the valid application submitted, the business registration authority of the district shall issue a certificate of the business household’s business suspension registration.
Contact LSX Law Firm
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