Regulations on suspension of business according to Vietnamese law

1. Legal provisions on business suspension?

For businesses that want to temporarily suspend business, based on the provisions of Clause 1, Article 206 of the Law on Enterprises 2020: Enterprises must notify the Business Registration Authority in writing at least 03 working days before the date of business suspension or resume business before the agreed deadline. newspaper.

In addition to the provisions of Clause 1, Article 66 of Decree 01/2021/ND-CP, regulations:

“Article 66. Registration of temporary suspension of business, resumption of business before the announced deadline for enterprises, branches, representative offices, business locations

1. Business cases If an enterprise, branch, representative office, or business location temporarily suspends business or resumes business before the announced deadline, the enterprise shall send a notice to the Business Registration Office where the enterprise, branch, representative office, or business location is located at least 03 working days before the date of suspension of business or resumption of business before the notified deadline. If you make a notice, you must notify the Business Registration Office at least 03 working days before the date of continued business suspension. The business suspension period of each notice must not exceed one year.

For business households, based on Article 91 of Decree 01/2021/ND-CP, regulations:

“Article 91. Suspension of business, resumption of business business before the deadline announced by the business household

1. In case of business suspension for 30 days or more, the business household must notify the district business registration authority where the business has been registered and the tax agency directly managing it.

2. In case a business household temporarily suspends business and resumes business before the announced deadline, the business household shall send a written notice to the district-level Business Registration Authority where the business household has registered at least 03 working days before suspending business or resuming business before the announced deadline. The notice must be accompanied by a copy of the meeting minutes of household members on registration of temporary business suspension or resumption of business before the notified deadline in case household members register for business. After receiving the notice, the district-level Business Registration Authority will issue a receipt to the business household. Within 03 working days from the date of receiving the valid dossier, the district business registration authority shall issue a confirmation of the business household’s registration to temporarily suspend business, and a confirmation of the business household’s registration to resume business before the deadline notified to the business household.”

Thus, when temporarily suspending business, both businesses and business households must notify the competent authorities. rights.

2. Duration of business suspension?

For businesses, based on Clause 1, Article 66 of Decree 01/2021/ND-CP and Point c, Clause 1, Article 212 of the Law on Enterprises 2020, the business can suspend for no more than 01 year must notify the business registration office.

For business households, based on Clause 1, Article 91 of Decree No. 01/2021/ND-CP, there is no business suspension period for business households.

3. Penalty for failure to notify when suspending business?

For households business, based on the provisions of Article 63 of Decree 122/2021/ND-CP, accordingly:

“Article 63. Violations of reporting information regime of business households

1. Fine from 5,000,000 VND to 10,000,000 VND for one of the following acts:

…

c) Temporarily suspending business, continuing business before the announced deadline but not sending a written notice to the district business registration authority where registered;

…”

Thus, when a business household temporarily suspends business without notification, it can be fined up to a maximum of 10,000,000 VND. In addition, remedial measures for this behavior are also applied, which is to notify the district business registration authority.

For businesses, based on point c, Clause 1, Article 50 of the Decree Decree. 122/2021/ND-CP, the fine for this violation is as follows:

– Fine from 10,000,000 VND to 15,000,000 VND for failure to notify or not notify on time to the business registration authority about the time and duration of business suspension or resumption business.

In addition to the above penalty, businesses need to take remedial measures such as forcing notification of the time and duration of business suspension or business resumption to the business registration authority in case of failure to notify the violation.

In addition, based on point c, Article 212 of the Law on Enterprises 2020, the business registration certificate will be revoked. Register a business in case the business stops doing business for 01 year without notifying the Business Registration Authority and the tax authority.

Thus, when temporarily ceasing business, the business or business household must notify the competent authority. Failure to notify will be considered a violation of the law and depending on the severity, there will be certain sanctions.