How long is the business suspension period?

Article overview

Business suspension period is an issue that businesses need to understand clearly to avoid violating the law. Understanding current regulations on business suspension periods will help businesses easily plan for re-operation or dissolution when necessary and avoid financial risks. Next, let’s join Long Phan to learn in detail about the business suspension.

Business suspension period of the enterprise according to the latest regulations
Business suspension period of the enterprise according to the latest regulations

Cases where businesses must temporarily suspend business

Pursuant to Clauses 1 and 2, Article 206 of the Law on Enterprise 2020, temporarily suspend business in the following cases:

  1. Enterprises temporarily suspend business;
  2. Temporarily suspend business at the request of a competent authority in the following cases:
  • When detecting that foreign investors do not meet business conditions according to legal regulations;
  • Temporarily suspend business at the request of relevant agencies according to the provisions of law on tax management, environment and other relevant laws.

Maximum period for an enterprise to temporarily suspend business

Pursuant to Clause 1, Article 66 of Decree 01/2021/ND-CP, the business suspension period of each notification must not exceed 01 years.

Maximum period for an enterprise to temporarily suspend business
Maximum period for an enterprise to temporarily suspend business

Is an enterprise temporarily suspending business obliged to pay license fees?

According to Clause 3, Article 4 of Circular 302/2016/TT-BTC (amended in Circular 65/2020/TT-BTC), Enterprises temporarily suspending business operations do not have to pay business license fees for the year of temporary suspension of business operations under the following conditions:

  • Document requesting temporary suspension of production and business activities sent to the tax agency or business registration agency before the prescribed fee payment deadline (January 30 every year);
  • If you have not paid the license fee for the year, please temporarily stop production and business activities.

Thus, when an enterprise announces a temporary suspension of business for the entire calendar year and meets the above two conditions, it will not pay the license fee for the year of temporary suspension. If you leave for less than 1 year (from January 1 to December 31), you still have to pay the license fee for the whole year.

Regulations on administrative penalties when businesses fail to notify business suspension

According to the provisions of Point c, Clause 1, Article 50 of Decree 122/2021/ND-CP, when an enterprise temporarily suspends business without timely notification to the business registration agency, it will be fined from 10,000,000 VND to 15,000,000 VND.

Remedy: Force notice of business suspension time.

In addition, based on Point c, Clause 1, Article 212 of the Law on Enterprises 2020, if an enterprise temporarily suspends business operations for 1 year without notifying the business registration agency and tax agency, the Registration Certificate The enterprise’s business will be revoked.

Penalties when businesses do not notify of temporary suspension of business
Penalties when businesses do not notify of temporary suspension of business

Consulting services on business suspension procedures for businesses

Coming to Long Phan, you will be supported in taking steps to quickly suspend business, ensuring all procedures are completed in accordance with the law. Below are the related services we provide:

  • Consulting on cases of business suspension;
  • Consulting on business suspension period;
  • Consulting and guidance on preparing documents to notify business suspension to business registration offices and tax authorities;
  • Consulting on the rights and obligations of businesses when temporarily suspending business;
  • Consulting on tax obligations when temporarily suspending business;
  • Advise on solutions when suspended by competent authorities;
  • Consulting on documents and procedures for notifying business resumption after temporary suspension;
  • Consulting and answering questions related to business suspension of enterprises.

Mastering the procedures and processes for notifying temporary suspension of business operations is extremely important to avoid unwanted risks. With a team of experienced experts, Long Phan will help you resolve all procedures quickly and effectively. Please contact us immediately via the hotline: 0906735386 for advice and dedicated support.