Doing business and doing business is not always favorable. Sometimes when difficulties appear, you have to suspend the business of the company. However, to suspend a business, you have to understand the related regulations in order to carry out the procedures prescribed by the law. In particular, when a foreign-invested company needs a temporary pause to resolve problems, it often encounters difficulties because the procedure is not as easy as that of a Vietnamese company. So, in this article LSX legal firm provides: “Service of business suspension for foreign company in Vietnam”
- Law on Enterprise 2020
- Decree 01/2021/ND-CP
Why suspend a business?
When businesses face difficulties in business, internal settlement, …. and can not fix the problems in a short time, they often have to consider about suspending the operation. This will help businesses “delay” with tax and insurance agencies, and at the same time not lose confidence as well as reputation with partners and customers.
Even in the event that the company has a serious crisis difficult to resolve, and the owner no longer interested in the company. Then the business should still not closed or dissolved because the following reasons show some benefits of business suspension:
The procedure for applying for an investment and establishment certificate of a foreign company is very complicated
If the customer later wants to return to business in Vietnam, the procedures make it very complicated to apply for investment as well as establishment registration certificate for a new foreign-invested company. But if there is an old company that is currently on suspension. You just go through the registration process to continue operating – a much simpler procedure. This helps owners save a lot in terms of time, effort, and money compared to the solution of dissolving the company and then setting up a new company.
Old company has great value and reputation
When choosing partners and suppliers, many individuals and organizations consider a company with a long history. The longer a company established, the more reputable and valuable it has in the eyes of its customers. Therefore, closing a company that has been established for a long time would be a huge waste. Especially if the company already has a well-known brand and just struggling at the moment, business suspension brings the best benefit.
Complicated dissolution procedures
Enterprises, especially foreign-invested enterprises, all have the following characteristics: easy to “born”, and difficult to “die”. Dissolving a company requires a lot of time, effort, and money. In the meantime, owners can carry out procedures for business suspension quickly and easily.
Attachment to the business
An established business is not just an organization on paper, it is also the sweat, tears, and emotions of so many people. Choosing to dissolve a business means no different from giving up all those precious things. Why not solve problems and find new directions? That will meet the sentiments and aspirations of many people who have made great efforts and believed in the company.
Dossiers to suspend business of a foreign company
To implement a temporary suspension of a foreign company. You need to prepare 01 set of dossiers in accordance with current regulations. The following dossiers correspond to the procedures for business suspension of foreign-invested enterprises in Vietnam.
- Firstly, a notice of suspension of investment projects;
- Secondly, the investor’s decision to suspend the investment project;
- Thirdly, investment registration certificate;
- Fourthly, certificate of business registration;
- Then, notice of business suspension of enterprises in Vietnam;
- Also, the decision to suspend the business of the owner/members/Board of Directors;
- Lastly, minutes of the meeting of the Board of Members/Board of Directors (for limited liability companies with 2 or more members or joint-stock companies).
Procedures to suspend business of a foreign company
Step 1: Submit your application
The person establishing the business or the authorized representative shall submit a complete application for business registration as prescribed. The applicant submits it at the Business Registration Office where the business located or submits an online business registration application.
Step 2: Receive and process the application
After receiving the business registration documents. The Business Registration Office hands over the receipt and checks the validity of the documents, and issues a certificate of the enterprise’s business suspension registration. In case of resumption, a written certification that the enterprise, branch, representative office, or business location has registered to continue doing business before the notified deadline, within 03 working days from the date of receipt of valid dossiers.
When an enterprise registers to suspend its business, the Business Registration Office updates the legal status of enterprises in the National Business Registration Database to the status of the suspended business.
Step 3: Submit the notice of business suspension
In case the application is valid, the enterprise will submit the paper notification (hard copy) to the Business Registration Office to receive the result. In case the dossier needs amendment or supplement, the enterprise will amend and supplement the dossier at the request of the registration office.
Note: The procedure to suspend the company’s business operation only needs to be filed at the Department of Planning and Investment and NOT at the tax agency that is managing the enterprise’s tax.
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.
According to current regulations, enterprises must notify the business registration agency at least 03 working days before the date of official suspension of business.
According to the provisions of law, the cases of temporary suspension of payment of compulsory social insurance. Except for the force majeure and objective cases where the parties cannot fulfill the obligation to pay social insurance premiums as prescribed by law.
The notice must bear the signature of the legal representative of the enterprise and the seal of the enterprise. The notice must have full information such as: Enterprise name, enterprise identification number, tax identification number, registered business lines, suspension duration, reason for suspension.
Finally, hope this article is useful for you to answer the question about “Service of business suspension for foreign company in Vietnam”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: email@example.com