Procedures for temporary suspension of business

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Procedures for temporary business suspension is legal content that readers often need to check carefully before implementing it in practice. This article has been reorganized by ANT Legal in an easy-to-understand way, helping individuals and businesses understand the main issues, common risks and appropriate solutions.

Enterprises temporarily suspend business to wait for new, better opportunities. ANT Legal Instructions on business suspension procedures are as follows:

Sequence and procedures for notification of business suspension

Step 1: Prepare documents to register business suspension

Documents include:

Notification of business suspension (Appendix II-21, Circular No. 02/2019/TT-BKHDT);
For enterprises that are granted Investment Licenses, Investment Certificates or documents of equivalent legal value, in addition to the above documents, the enterprise must submit: A valid copy of the Investment Certificate; Valid copy of Tax Registration Certificate; Application for supplementing and updating business registration information specified in Appendix II-18 Circular No. 02/2019/TT-BKHDT;
Decision on temporary suspension of business;
Meeting minutes of the Board of Directors for limited liability companies with two or more members, of the Board of Directors for joint stock companies, of joint members name for a partnership company.
Number of documents: 01 set

Step 2: Submit application

Place of receipt and processing: Business Registration Office – Department of Planning and Investment where the Company is headquartered.

How to submit application:

Submit application directly to the Business Registration Office where the business location is located.

Submit business registration application electronically.

Step 3: Receive and processing

Resolution order

The Business Registration Office issues a Receipt of documents to the enterprise after receiving the notification.

The Business Registration Office processes the documents, asks for opinions from relevant agencies (if necessary) during the processing process and completes the results of document processing and updates the status of the documents on the online database for businesses updated file status

Resolution results

Confirmation of the enterprise’s registration to temporarily suspend operations if the file is valid;

Notification of amendments and supplements to the file if the file is not valid.

Resolving time: 03 working days

Fee: no

Notes when temporarily suspending business

Time limit for notification of temporary business suspension

The company has the right to temporarily suspend business operations. However, it must be notified in writing to the competent state authority. The latest notification time is 15 days before suspension.

Duration of temporary suspension

Duration must not exceed 01 year. After the end of the notified period, if the enterprise continues to temporarily suspend business, it must continue to notify the Business Registration Office, the total consecutive period must not exceed 02 years.

In case the enterprise ceases business operations for 01 year without notifying the Business Registration Authority and the tax authority, the Business Registration Certificate may be revoked.

Tax issues when temporarily suspending operations. Business shutdown

During the temporary shutdown, businesses must pay all outstanding taxes. Besides, continue to pay debts, complete the implementation of contracts signed with customers and employees, unless otherwise agreed.

About license tax:

In case of temporary suspension of operations for less than 01 year, the company does not need to pay license tax or license tax declaration.

In case of temporary suspension of operations for less than a full year You still have to pay tax and declare in full according to regulations.

About VAT declaration and report on invoice usage:

Enterprises do not have to submit VAT declaration and report on invoice usage from the time the Business Registration Office confirms that the enterprise is temporarily suspended.

About financial reporting main:

Enterprises that are temporarily suspended for a full year are not required to submit financial reports. In case of temporary suspension for less than a full year, the financial statements must still be submitted for the time the business has not registered for temporary suspension.

Services to carry out business suspension procedures of ANT Legal

Suspension of business operations.
Conversion of business type
Division, separation, consolidation, merger of businesses.
Notice of private share offering.
Termination of branch/representative office/business location.
Dissolution of one-member LLC.
Dissolution of two-member LLC tablets or more.
Dissolution of joint stock company.
Dissolution of partnership company.
Dissolution of private enterprise.

ANT Legal always proud to be a company providing legal solution consulting services for businesses. With that experience, we are confident in providing business suspension services.

Note on Applying Current Legal Regulations

This article belongs to the Legal Knowledge group and is presented for reference purposes, helping readers understand the legal issue at an overview level before preparing a dossier or carrying out a transaction.

Legal regulations may vary depending on the timing, locality, type of dossier and specific circumstances. If you need to determine the exact legal basis applicable to your case, you should contact ANT Legal’s lawyers at 0966.475.966 for review and advice before proceeding.

Common Legal Risks to Note

Applying legal instruments that have been amended, supplemented or replaced.
Preparing an incomplete set of documents, materials or necessary evidence.
Misunderstanding the conditions, procedure, timeline or competent authority.
Signing, submitting a dossier or carrying out a transaction before fully assessing legal risks.

How Can ANT Legal Support You?

ANT Legal can review the specific circumstances, examine the dossier, identify the applicable legal basis, advise on an appropriate handling plan and represent clients in working with individuals, organizations or competent authorities where necessary.

For prompt advice, you may contact a lawyer at 0966.475.966.

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