In the context that the business market is always volatile and affected by many factors, suspending business can become an important decision for businesses. Below is a detailed guide to the business suspension procedure, related documents, and necessary notes to ensure that the suspension process takes place smoothly and in accordance with the law.
In the context that the business market is always volatile and affected by many factors, suspending business can become an important decision for businesses. Below is a detailed guide to the business suspension procedure, related documents, and necessary notes to ensure that the suspension process takes place smoothly and in accordance with the law.
To suspend business, enterprises need to prepare the following documents:
- Notice of business suspension.
- Minutes of the meeting of the Board of Directors (for joint-stock companies) or minutes of meetings of the Board of members (for limited liability companies with two or more members) on the decision to suspend business. - Decision on business suspension.
- Publish information on business suspension on information sites, publications and at the head office within 36 hours from the suspension of operation.
- Maximum term: Businesses can suspend business for a maximum of 1 year for each registration.
- Unlimited number of registrations: Businesses can register to suspend business many times, but they need to ensure compliance with the law on time limits and full notice.
When deciding to suspend business, enterprises need to take the following steps:
Step 1: Notify the suspension or resumption of business (if you want to resume before the deadline) to the Business Registration Office at least 3 working days before the expected date of suspension or continuation.
Step 2: If the enterprise wants to continue to suspend after the expiration of the notified period, it needs to send a new notice to the Business Registration Office at least 3 working days before the date of suspension.
Step 3: The dossier of business suspension must be enclosed with a resolution, decision and a copy of the minutes of the meeting of the Board of members (for companies with 2 or more members), of the Board of Directors (for joint-stock companies), or decisions of the owner (for single-member limited liability companies).
Step 4: The Business Registration Office will check and issue a certificate of suspension or resumption of business within 3 working days from the date of receipt of a valid dossier.
Step 5: The Business Registration Office updates the legal status of the enterprise in the National Enterprise Registration Database, including the status of the branch, representative office, and business location.
- Timely notification: Enterprises need to notify the competent authority at least 3 days before suspending business operations.
- Filing tax returns: Businesses are still required to file tax returns during the suspension of business.
- Pay debts: Businesses must pay all debts to partners, customers, and employees before suspending them.
- Completion of contracts: Businesses need to complete the contracts signed with customers and employees before suspending business.
- Tax declaration: If the enterprise does not incur tax obligations during the suspension period, it is not necessary to submit a tax declaration dossier to the tax authority.
- Notify the tax authority: The enterprise needs to notify the tax authority of the suspension or resumption of business within 2 days from the date of registration.
Step 1: Prepare a dossier of business suspension, including documents as prescribed and reasons for suspension.
Step 2: Submit the application online at the Department of Planning and Investment where the head office is registered.
Step 3: The Business Registration Office receives and appraises the dossier, updates the status online.
Step 4: Receive a notice of business suspension if the application is valid.
Step 5: Officially suspend business activities according to the notification time. Businesses can resume operations after the expiration of the term or register to resume operations before the deadline.
Note that this procedure only needs to be submitted at the Department of Planning and Investment, not at the tax authority of the enterprise.
In short, enterprises need to understand the regulations and procedures related to business suspension to ensure the implementation of the law, avoid affecting the interests of stakeholders, as well as obligations to the State.
If you need more information or support, please contact ADVN LAW for detailed advice.
- Address: F2&F3, No. 2 Phung Khac Khoan, Da Kao Ward, District 1, Ho Chi Minh City
- Phone: 0903.693.301 – 0909.393.329
- Email: vanphongluatsuadvn@gmail.com; advnlaw@gmail.com
