TEMPORARY BUSINESS ACTIVITIES

When the business is not efficient, the business owner can choose to suspend the operation registration of the business instead of going through the enterprise dissolution procedure.

According to K1 Article 41 of Decree 01/2021/ND-CP, the provision on business suspension is as follows: “Suspending business” is the legal status of an enterprise that is in the period of temporary business suspension as prescribed. in Clause 1, Article 206 of the Law on Enterprises. The date of changing the legal status of “Suspended from business” is the date the enterprise registers to start suspending its business. The end date of the legal status of “Suspended business” is the end date of the business suspension period announced by the enterprise or the date the enterprise registers to resume business before the announced time limit.

Time to suspend business

According to the provisions of Clause 2, Article 57 of Decree No. 78/2015/ND-CP, the duration of suspension of business activities of an enterprise must not exceed 01 year.

After the notice period expires, if the enterprise still wants to continue to suspend its business, it must notify the second notice of business suspension to the Business Registration Office.

Dossier to suspend business

– Notice of business suspension according to the form in Circular 01/2021/TT-BKHDT
– Minutes of meeting, decision to suspend business according to authority (company owner, board of directors, council) members, general partners..)

–  Authorization to carry out business registration procedures

– A copy of the applicant’s personal identification document

Procedures for business suspension

Step 1: Submit application for business suspension

Dossier of notice of business suspension shall be submitted directly or by post to the Business Registration Office where the enterprise’s head office is located no later than 03 working days before the date of suspension of the company’s operations.

Note: if you pay directly, you should submit it between 7:30 am and 11:30 am in the mornings from Monday to Saturday.

Step 2: Check the validity of the profile

After receiving the enterprise’s application for notice of business suspension, the Business Registration Office shall hand over the receipt, check the validity of the dossier and process the enterprise’s dossier according to regulations.

In addition, enterprises can submit an online business suspension notice through the National Business Registration Portal at the website address: dangkytinhdoanh.gov.vn

Step 3: Issuing a certificate of the enterprise’s business suspension registration

If the application is valid, within 03 working days, the Business Registration Office shall issue a certificate of the enterprise’s registration of temporary cessation of business operations.

Notes when suspending business

• Send a notice of business suspension at least 03 days before suspending business with the enterprise, at least 01 day in advance with other units
• The dependent unit must be suspended if the main unit is suspended.
• Taxpayers who do not incur tax obligations during the period of business suspension are not required to submit tax returns for the period of business suspension. In case taxpayers suspend their business for less than a calendar year or a fiscal year, they still have to submit annual tax finalization dossiers.
• License fee is not payable if business is suspended before January 30
• During the business suspension period, the enterprise must fully pay the outstanding tax amount; continue to pay debts, complete the performance of contracts signed with customers and employees, unless otherwise agreed upon by enterprises, creditors, customers and employees.

However, in practice, businesses that owe taxes often will not be allowed to suspend business until they have fulfilled their tax obligations with the tax authorities.

Above are the sharing of MVA Law on documents and business suspension procedures, for any questions, please contact Hotline: 0981.350.666 for the best advice and answers!0