Notice of temporary suspension of business location of one member LLC

Notice of temporary suspension of business location of one member LLC is a necessary procedure to help businesses demonstrate compliance with legal regulations when temporarily suspending operations at a specific address. Implementing the correct process helps businesses avoid administrative penalties, ensure accurate information updates on the business registration system, and proactively control tax and labor obligations during shutdowns.

How long is the temporary suspension of the business location of a limited liability company?

The period of temporary suspension of business location of a limited liability company is specifically stipulated in the current enterprise law. According to Clause 1, Article 66 of Decree 01/2021/ND-CP dated January 4, 2021 of the Government, the business suspension period of each notification must not exceed one year (12 months). This is a mandatory regulation that applies to all business locations of a limited liability company when conducting procedures to temporarily suspend operations.

During the above business suspension period, the LLC must still fully fulfill the following obligations:

• Pay the full amount of tax owed;
• Continue paying debts;
• Complete the implementation of contracts signed with customers and employees.

Thus, the maximum period for a business location to temporarily suspend operations is 12 months/per suspension.

>>>See more: What is a business location? Registration process.

Procedure for the notice of temporary suspension of business location of one member LLC

A one-member LLC is obliged to notify the business registration agency about the temporary suspension of its business location according to the following process:

File

To carry out the procedure for notification of temporary cessation of business location operations, a limited liability company needs to prepare complete documents according to regulations. Document components include:

1. Notice of temporary business suspension of business location according to the form Appendix II-19 issued with Circular 01/2021/TT-BKHDT dated March 16, 2021 of the Ministry of Planning and Investment.
2. Application for supplementing and updating operating registration information for business locations (Form Appendix II-15 issued with Circular 01/2021/TT-BKHDT dated March 16, 2021 of the Ministry of Planning and Investment) for companies operating under Investment Licenses, Investment Certificates or documents with equivalent legal value that have not supplemented or updated business registration information to be granted business registration to replace the business registration content in the Investment License or Certificate. Investment certificate or documents of equivalent legal value.
3. Authorization document for the person to submit the application and receive results if not the legal representative.
4. A valid copy of one of the personal identification documents of the person authorized to perform the procedure (if any):

• For Vietnamese citizens: Citizen identification card or valid Vietnamese Passport;
• For foreigners: Foreign passport or valid document replacing a valid foreign passport.

Thus, the company needs to fully prepare the above documents. Missing one of the above documents will make the settlement process at the competent authority lengthy and complicated.

Implementation process

The process of implementing procedures for notification of temporary cessation of business location operations for one-member limited liability companies is clearly stipulated in current law. According to the provisions of Article 66 of Decree 01/2021/ND-CP, the specific implementation process is as follows:

Step 1: Prepare complete documents according to the above regulations.

Step 2: Submit documents to the Business Registration Office – Department of Planning and Investment where the business location is registered no later than 03 working days before the date of business suspension according to Clause 1, Article 66 of Decree 01/2021/ND-CP.

Step 3: The enterprise receives a receipt from the Business Registration Office.

Step 4: The Business Registration Office checks the validity of the dossier and issues a confirmation that the business location has registered to temporarily suspend business within 03 working days from the date of receiving the valid dossier.

Step 5: The enterprise receives the result as a confirmation of the business location registering to temporarily suspend business.

Above is the process for making a business suspension notice at the Business Registration Office when an enterprise needs to temporarily suspend operations of its business location.

>>>See more: Suspension procedures for representative offices of joint stock companies.

Is it allowed to return to operations before the end of the temporary suspension period?

According to Clause 1, Article 66 of Decree 01/2021/ND-CP, one-member limited liability companies can completely continue business before the announced suspension deadline. This regulation creates favorable conditions for businesses when they need to resume operations sooner than expected.  To do this, the company needs to comply with the following regulations:

1. The company needs to send a notice to the Business Registration Office where the business location is located at least 03 working days before the date of resuming business before the announced deadline.
2. After receiving the registration dossier, the Business Registration Office will:

• Give the receipt to the applicant;
• Check the validity of documents;
• Within 03 working days from the date of receipt of valid documents, the Business Registration Office will issue a confirmation that the registered business location continues to do business before the announced deadline.

For example: Company A has announced that the period of temporary suspension of business at business location B is 10 months, but after only 06 months, the company needs to continue business before the announced deadline. In this case, the company only needs to send a notice to the Business Registration Office where the company is headquartered at least 03 working days before the date of resuming business before the announced deadline, then the company can resume operations.

Thus, the company’s business location can completely resume operations before the deadline when the difficulties are soon overcome. The time limit for resolving procedures for continuing business ahead of time is similar to procedures for temporary business suspension, which is 03 working days from the date of receipt of valid documents.

>>>See more: Procedures for notification of re-operation before the deadline for a joint stock company.

Consulting service on procedures for the notice of temporary suspension of business location of one member LLC at Long Phan Consulting Company

Long Phan Consulting Company provides professional consulting services on procedures for notifying temporary suspension of business locations for limited liability companies. With many years of experience in the field of corporate law, the team of experts at Long Phan Consulting Company includes:

• Consulting on regulations on temporary suspension of business locations;
• Instructions on obligations to be performed during the suspension period;
• Drafting necessary documents and records to carry out business suspension procedures;
• On behalf of the enterprise, carry out procedures at state agencies;
• Support procedures for continuing business ahead of time or announcing suspension after the end of the announced period.
• Consulting on implementing other procedures after announcing business suspension;
• Consulting to resolve when a dispute occurs.

With professional consulting services from Long Phan Consulting Company, customers will save time, effort and costs in carrying out legal procedures, while ensuring compliance with legal regulations.

Some frequently asked questions about procedures for the notice of temporary suspension of business location of one member LLC

We would like to provide you with some common questions related to the procedure for the notice of temporary suspension of business location of one member LLC.  Please refer!

What are the reasons that often lead to businesses deciding to temporarily suspend business operations?

Normally, a business may decide to temporarily suspend the operation of its business location due to financial difficulties, unfavorable market fluctuations, needing time to repair or upgrade facilities, or being in the process of restructuring its business operations.

What will happen if the business does not notify the temporary suspension of business location operations in accordance with the law?

Failure to comply with the notice of temporary suspension of business location operations as prescribed may lead to legal consequences such as being fined for administrative violations according to the law on business registration.

Can the period of temporary suspension of business operations be extended beyond 12 months?

According to current regulations, the business suspension period of each notification must not exceed one year. If the business wishes to continue the suspension after this period, they need to carry out a new suspension notification procedure.

Do businesses have to bear any costs when carrying out procedures for notifying temporary suspension or resuming operations?

Currently, according to regulations, businesses do not have to pay state fees when carrying out procedures for notifying temporary cessation of operations or notifying the resumption of operation of business locations. However, there may be costs associated with document preparation and travel.

What is the basic difference between a temporary shutdown of a business location and a temporary shutdown of the entire business?

Temporarily suspending business location operations only applies to one or a few specific business locations of the enterprise, while the enterprise can still maintain operations at other locations (if any). Temporarily suspending business operations is when an enterprise stops all of its business activities.

In addition to the above mentioned documents, what other things should businesses keep in mind when carrying out the temporary suspension notification procedure?

Enterprises need to ensure that the information in the declaration is accurate and complete. The application submission time must be at least 03 working days before the expected suspension date. At the same time, businesses need to carefully keep the Confirmation of temporary business suspension registration.

How will the temporary shutdown of a business location affect the rights of employees working there?

During the temporary suspension of operations, enterprises are still obliged to fulfill their commitments to employees according to labor contracts and provisions of labor law, including resolving related regimes (if any).

How is the procedure for completely terminating the operation of a business location different from the procedure for temporary cessation?

The procedure for completely terminating the operation of a business location is a legal procedure to eliminate the existence of that business location, including filing termination documents and performing related financial obligations. This procedure is different from suspension, which is only temporary.

Besides the business registration agency, does the enterprise need to notify any other relevant agencies or partners about the temporary suspension of operations?

Depending on the specifics of business activities and signed commitments, businesses may need to notify direct tax authorities, business partners, banks, or other relevant parties to ensure the rights and obligations of the parties.

What is the specific penalty for non-compliance with the regulations on notification of temporary suspension of business operations?

Penalties for failure to notify or notify on time of temporary suspension of business location operations will be specifically stipulated in legal documents on sanctions for administrative violations in the field of planning and investment. Businesses need to refer to these regulations to clearly understand.

When is the most appropriate time for a business to carry out procedures for notifying the temporary suspension of business operations?

Enterprises should carry out procedures for notification of temporary suspension of operations as soon as there is an official decision and have a specific plan for the temporary suspension period, while ensuring compliance with the prescribed application deadline (at least 03 working days in advance).

Do authorities conduct inspections of business locations that have announced temporary suspension of operations?

The authorities have the right to conduct inspections according to the provisions of law to ensure that the temporary suspension of operations takes place for the right purpose and that no illegal business activities arise during this period.

Above are some questions surrounding the procedure for the notice of temporary suspension of business location of one member LLC. We hope that the above answers have partly answered your questions about this issue and helped you feel more confident when performing this procedure. Thank you!

Conclude

The notice of temporary suspension of business location of one member LLC is an important procedure to help businesses comply with legal regulations, avoid administrative sanctions and ensure information transparency on the national business registration system. With the companionship of Long Phan Consulting Company, businesses will receive detailed instructions to carry out procedures quickly, accurately and legally. Contact the hotline 1900636389 for detailed advice.