Suspension of business operations is an administrative procedure carried out by an enterprise at the Department of Planning and Investment of the province/city where the enterprise is located to suspend production and business activities for a certain period of time because different reasons

Pursuant to Article 206 of the Enterprise Law 2020 stipulating on suspension, operation suspension, business termination as follows:

“1. Enterprises must notify in writing the Business Registration Office no later than 03 working days before the date of suspension or resumption of business before the notice period.

2. The business registration authority, the competent state agency shall request the enterprise to suspend, suspend its operation or terminate its business in the following cases:

a) Suspend or terminate conditional business lines, lines of business with conditional market access for foreign investors when detecting that the enterprise does not fully meet the corresponding conditions as prescribed; under the law;

b) Suspend business at the request of relevant agencies in accordance with the provisions of law on tax administration, environment and other relevant laws;

c) Suspend operations, terminate business in one or a number of lines of business or in a number of fields under a court decision.

3. During the period of business suspension, the enterprise must fully pay the outstanding tax, social insurance, health insurance and unemployment insurance amounts; continue to pay debts, complete the performance of contracts signed with customers and employees, unless otherwise agreed upon by enterprises, creditors, customers and employees.

4. The Government shall detail the order and procedures for coordination between the business registration agency and the competent state agency in the case specified in Clause 2 of this Article.”

Accordingly, when an enterprise suspends its business, it must carry out the procedures to notify the Business Registration Office where the enterprise, branch, representative office or business location is located no later than 03 working days in advance. business suspension date. The duration of business suspension of each notification must not exceed 01 (one) year and there is no limit to the number of times of notification.

A dossier of business suspension includes the following documents:

1. Notice on business suspension (Appendix II-19, Circular 01/2021/TT-BKHDT).
2. Resolution, decision and copy of the meeting minutes of the Members’ Council, for limited liability companies with two or more members, partnerships, of the Board of Directors, for joint-stock companies; Resolution, Decision of the company owner for a one-member limited liability company on business suspension.
3. In case of authorization to carry out business registration procedures, the enterprise registration dossier must be accompanied by the papers and documents specified in Article 12 of Decree No. 01/2021/ND-CP.

The suspension of the business will suspend the business activities of the company, which means that the business cannot enter into contracts, cannot issue invoices or have any other activities, so immediately after the suspension. For business, your company needs to carry out the procedure of Notice of Suspension with its partners and customers in writing and on the company’s website.

Above is Khoa Tin‘s advice on business suspension procedures in Vietnam.

In case customers have unclear issues or need to discuss further, please call us immediately at 0983.533.005 for a free consultation.

Best regards./.