Legal service

Temporary suspension of representative office business in Vietnam

You are interested in Temporary suspension of representative office business in Vietnam so let's go check out the following article!

Currently, during the complicated Covid-19 epidemic, it is inevitable that small and large enterprises face particular difficulties in doing business as well as finding sources of customers and partners. Faced with these negative effects, many companies have chosen for themselves the option of temporarily suspending the business of representative offices in epidemic areas to ensure safety as well as have appropriate plans. In the following article, LSX Law firm will provide readers with the latest knowledge about Temporary suspension of representative office business in Vietnam.

Enterprise Law 2020;

Decree 01/2021/ND-CP;

Circular 01/2021/TT-BKHDT. 

What is business suspension in Vietnam?

According to Clause 1, Article 41 of Decree 01/2021/ND-CP on business suspension as follows:

Article 41. The legal status of enterprises

The legal status of enterprises in the National Database of Business Registrations include:

1. “Suspended business” means the legal status of an enterprise that is in the period of business suspension as prescribed in Clause 1, Article 206 of the Law on Enterprises. The date of changing the legal status of “Suspended business” is when the enterprise registers to start suspending its business. The end date of the legal status of “Suspended business” is the date of the end of the business suspension period announced by the enterprise or the date the enterprise registers to resume business before the announced time limit. 

Conditions for temporary suspension of representative office business in Vietnam

  • At the time the enterprise registers to suspend its operation, the enterprise is not subject to the tax code. Many established businesses do not do business at their registered headquarters; or do not operate a physical business and therefore do not file a complete tax return. When there are violations as above, the Tax Department will close the tax code for these businesses. Consequently, I want to do the registration procedure to suspend the business. First, the business will have to carry out the process to recover the closed tax code.
  • The enterprise must notify the temporary suspension of its operation to the business registration office 3 days before the enterprise suspends its operation. For example, on September 15, the business temporarily stopped operating. No later than September 12, the enterprise will have to send a notice of suspension to the Business Registration Office, where the company is located. 

Components of the application file for temporary suspension of business representative office

Components of the application file for temporary suspension of representative office business include the following documents:

  • Notice of termination of operation of branch/representative office/business location;
  • Certificate of operation registration of the branch or representative office;
  • A written request for addition or update of information on operation registration (in case a branch, representative office, or business location affiliated to the enterprise is granted an Investment License, Investment Certificate; or other papers; have equivalent legal value);
  • A valid copy of the investment certificate and a valid copy of the branch’s tax registration certificate (in case the branch’s business location is granted an investment license or investment certificate; or papers of equivalent legal value). 

Notice to suspend representative office business temporarily in Vietnam

  • Declare information about the enterprise according to the Application for Supplement and update of business registration information. For enterprises operating under Investment License, Investment Certificate.
  • If not the owner or legal representative of the enterprise directly applies, the authorized person must present a valid copy of one of the personal identification papers:
  • For Vietnamese citizens: Citizen identification card; or valid Vietnamese ID card or Passport.
  • For foreigners: A valid foreign passport or a valid replacement for a foreign passport.), accompanied by a written authorization as prescribed by law; for individuals to carry out procedures related to business registration. Business founders; or an authorized representative shall submit a complete application for business registration as prescribed at the Business Registration Office. The place where the representative office is located or the enterprise registration dossier is submitted electronically.

Finally, hope this article about Temporary suspension of representative office business in Vietnam is helpful for you!

If you have any questions; please contact Lawyer X for quick and best legal services: +84846175333 or email: [email protected]

Related questions

Do I have to pay social insurance if I suspend my business?

If the company has no other agreement with the employee, the company still has to pay full social insurance according to the provisions of law during the time of business suspension.

Can a company that owes tax be able to suspend its business?

Yes, it can. However, during the temporary suspension of business, the company must make sure to fully pay the outstanding tax amount into the state budget within the prescribed time limit. If there is a late payment of tax, the tax authority will calculate a fine for late payment of tax according to regulations.

Conclusion: So the above is Temporary suspension of representative office business in Vietnam. Hopefully with this article can help you in life, please always follow and read our good articles on the website:

Có thể bạn quan tâm

Back to top button