Businesses are not always favorable. Sometimes, you need to temporarily stop doing business in a foreign company. In particular, when a foreign-invested company encounters difficulties in doing business and needs a temporary pause to resolve it, it often encounters difficulties because the procedure is not as easy as that of a Vietnamese company. Understanding this, LSX Law firm would like to introduce to you our temporary suspension of business services for foreign companies This promises to be a perfect choice for you to carry out this procedure quickly and efficiently.
Legal Ground.
- Enterprise Law 2020;
- Decree 01/2021/ND-CP.
Why do you need to suspend a business?
When businesses encounter difficulties in performing, having an internal conflict that can not be fixed in a short time, you often have to think about suspending the operation. This will help businesses “postpone” paying tax and insurance and at the same time not lose trust with partners and customers. Even in the event that the company has a serious crisis that is difficult to resolve, and the owner is no longer interested in the company, it is still not recommended to close or dissolve the company, but should only temporarily suspend it for the following reasons. :
The procedure for applying for an investment license and establishing a foreign company is very complicated.
If the owner what to do business in Vietnam again, it is very complicated to apply for an investment license and establish a new company. But if there is an old company that is on hiatus. You only need to carry out the registration of continuing the company – a much simpler procedure. This saves the owner time, effort and money than dissolving the company and then set up a new company.
Former company have great value and reputation
When choosing partners and suppliers, many individuals and organizations pay attention to the history of the company. The longer a company was established, the more reputable and valuable it is 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 famous brand name and is only facing difficulties at the moment.
The dissolution procedure is complicated
For Vietnamese enterprises, especially foreign-invested enterprises. They all have the following characteristics: easy birth, difficult death. Dissolving a company requires a lot of time, effort, and money. In the meantime, it’s much easier to suspend business. This is a wise choice of the business owners since Suspending a foreign-invested company is much easier.
Corporate Engagement
A business is more than just text on paper. It is the sweat, tears, the emotions of so many people. Choosing to dissolve a business is no different from giving up all those precious things. Why not solve the problem and find a new direction. That will meet the sentiments and aspirations of many people who have made great efforts in, and trust the company.
How to suspend the business of foreign companies?
Dossiers for temporary suspension of business of foreign companies
To suspend business of foreign companies. You need to prepare 01 set of documents in accordance with current regulations. The following documents are documents corresponding to the procedures for business suspension of foreign-invested enterprises in Vietnam. Depending on the type of company there may be differences:
- Notice of suspension of investment projects;
- The investor’s decision to suspend the investment project;
- Investment registration certificate;
- Certificate of business registration;
- Notice of business suspension of enterprises in Vietnam;
- The decision to suspend the business of the owner/members/board of management;
- A Written record of the meeting of the Members’ Council/Board of Directors (for limited liability companies with 2 or more members or joint-stock companies).
Agency in charge: Department of Planning and Investment of the province or city where the enterprise is located.
Note: If the application is not submitted by the legal representative of the company, an authorization letter is required for the representative to submit the application.
Procedures for temporarily suspending business of foreign companies
Firstly, submit the application
The business founder or authorized representative must submit a complete application for business suspension, at the Business Registration Office where the business location is located; or submit an application online.
Step 2: Receive and process documents
After receiving the business registration documents. The Business Registration Office hands over the receipt, checks the validity of the dossier, and issues a certificate of the enterprise’s business suspension registration. 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 reception date of a valid dossier.
In case an enterprise registers to suspend its business. The Business Registration Office updates the legal status of the enterprise in the National Business Registration Database to the state of suspension of business.
Step 3: Results
Within 03 working days. From the date the Business Registration Office receives a document from a competent state agency that the enterprise must suspend the business; or fully serve the penalty, complete the execution of judicial measures in accordance with specialized laws. The Business Registration Office updates information on the National Business Registration Database.
Finally, hope this article helps you.
Also, If you have any questions, please contact Lawyer X for quick and best legal services: 0833102102.
Frequently Asked Questions
So, is it possible to resume operations before the suspension period expires?
Yes. It is entirely possible. If the business wishes to resume business before the deadline, it only needs to complete the registration procedure to continue doing business. Time to resume business will also have to be after at least 03 working days from the date the enterprise submits the application.
So, is it possible to suspend the business of a foreign company immediately?
No. According to current regulations, enterprises must notify the business registration agency at least 03 working days from the date of official suspension of business. Therefore, the business suspension period must be at least 03 working days from the date of submission of the application.
So, who has to pay social insurance when a foreign business is in suspension?
According to the provisions of law, there are cases of suspension of payment of compulsory social insurance.
In force majeure and objective cases where the parties cannot fulfill the obligation to pay social insurance premiums as prescribed by law.
See more
Procedures for foreigner’s capital contribution to a company in Vietnam
Limited liability company in Vietnam: What are the pros and cons?
Procedures after foreign investors establish a company in Viet Nam
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