Instructions on business suspension procedures for businesses

Article overview

Procedures for temporary business suspension is an important process for businesses when they need to temporarily suspend operations for a certain period of time without having to stop completely. Understanding and properly implementing this procedure will help businesses avoid legal risks, protect the rights of related parties and ensure that their business obligations are not affected. Through the following article, Long Phan will provide customers with detailed information about the above procedure.

How are business suspension procedures regulated?
How are business suspension procedures regulated?

What is temporary suspension of business?

Suspension of business, based on Clause 1, Article 41 of Decree 01/2021/ND-CP, is the legal status of an enterprise during the period during which that enterprise temporarily suspends operations according to the provisions of the Law on Enterprise.

Components of business suspension dossier

According to Clause 2, Article 66 of Decree 01/2021/ND-CP, when businesses temporarily suspend business, they need to prepare the following documents in the dossier:

  1. Document of notice of temporary suspension of business of the enterprise.
  2. Resolutions, decisions and copies of meeting minutes:
  • For limited liability companies with two or more members and partnerships: resolutions, decisions and meeting minutes of the Board of members are required.
  • For joint stock companies: resolutions, decisions and meeting minutes of the Board of Directors are required.
  • For a one-member limited liability company: a resolution or decision of the company owner is required.

All of these documents need to be fully prepared to ensure the documents are valid when sent to the Business Registration Office

Document components when carrying out business suspension procedures
Document components when carrying out business suspension procedures

Procedures for temporary business suspension for businesses

Pursuant to Article 66 and Article 67 of Decree 01/2021/ND-CP, steps to temporarily suspend business for businesses will include:

Step 1: Notify the Business Registration Office

  • Enterprises need to send a notice to the Business Registration Office where the enterprise is headquartered.
  • This notice must be sent no later than 03 working days before the start date of business suspension.

Step 2: Wait for confirmation

  • After submitting the application, the business will receive a Receipt from the Business Registration Office.
  • This department will check the validity of the dossier and issue a certificate of business suspension within 03 working days from the date of receipt of the valid dossier.

Step 3: Update information

After receiving the confirmation, the Business Registration Office will update the legal status of the enterprise to the state of temporary business suspension in the National Database.

Step 4: Register to continue doing business (if necessary)

If the enterprise wants to continue doing business before the announced deadline, it needs to do the same as step 2, send a notice to the Business Registration Office and do so within the prescribed time period.

Note:

  • The business suspension period for each notification must not exceed one year.
  • In case an enterprise does not comply with a temporary suspension request from a state agency, the Business Registration Office will request the enterprise to report and may update information in the National Database.
Steps to temporarily suspend business for businesses
Steps to temporarily suspend business for businesses

Things to keep in mind when temporarily suspending your business

When an enterprise temporarily suspends business, it is necessary to pay attention to the following issues:

  • Notice 03 working days in advance: Enterprises must send notice to the Business Registration Authority at least 03 days before suspending business.
  • Notify the tax authority: Enterprises do not need to notify the tax authority directly, because the Business Registration Authority will automatically send this information.
  • The suspension period must not exceed 01 year: Each suspension period cannot last more than 01 year, but the enterprise can suspend it multiple times in a row.
  • Submitting tax declarations: Enterprises do not have to submit tax declarations during the suspension period, except in cases where the suspension is not for an entire month, quarter, or year.
  • Status of dependent units: The status of branches and representative offices will be updated to temporary status along with the business.
  • Continuing business before the deadline: Enterprises can register to continue business before the announced deadline and need to make similar notifications to branches and representative offices.

Guidance service on temporarily suspending business for businesses in Long Phan

To carry out business suspension procedures smoothly and effectively, Long Phan provides customers with a service to guide the implementation of business suspension. Include:

  • Consulting in detail the business suspension process.
  • Assist you in preparing and completing necessary documents for suspension procedures.
  • Your representative sends documents to the Business Registration Office and monitors the processing process.
  • Support customers to check and update the status of their business after temporarily suspending business.
  • Consulting on activities to prepare for resuming operations after a temporary suspension.
  • Consulting on other relevant regulations and procedures.

Business suspension procedures are an important step to help businesses protect their rights when not operating without facing financial risks. To properly follow the process and complete documents, businesses need to comply with the requirements of the authorities. Long Phan is always ready to support you quickly and effectively. Please contact us via hotline 0906735386 for detailed advice!