Temporary Suspension of Business Registration for More Than One Year: Is It Allowed? What Are the Procedures for Temporary Business Suspension Registration?
Can a Temporary Business Suspension Be Registered for More Than One Year?
Based on Clause 1, Article 66 of Decree 01/2021/ND-CP, the regulation on this issue is as follows:
Registration for temporary business suspension, resumption of business operations ahead of the notified period for enterprises, branches, representative offices, business locations
1. In the event that an enterprise, branch, representative office, or business location temporarily suspends its business operations or resumes operations ahead of the notified period, the enterprise must send a notification to the Business Registration Office where the enterprise, branch, representative office, or business location is headquartered no later than 03 working days before the temporary suspension or resumption of business operations. If the enterprise, branch, representative office, or business location wishes to continue the suspension of business operations after the notified period ends, it must notify the Business Registration Office no later than 03 working days before the continued suspension. The business suspension period for each notification must not exceed one year.
Accordingly, based on the above regulation, when an enterprise intends to suspend its business operations, it must send a notification to the Business Registration Office where it is headquartered. It should be noted that the suspension period for each notification must not exceed one year.
Therefore, if the enterprise wishes to suspend business operations for a period longer than one year, it must notify the suspension on an annual basis, and indefinite suspension is not allowed.
Are enterprises required to register for business suspension each year? What are the procedures for registering for business suspension?
What Are the Procedures for Registering for Business Suspension According to the Latest Regulation?
According to Article 66, Decree 01/2021/ND-CP, the procedures for registering a business suspension are as follows:
Step 01: Notify the Business Registration Office where the enterprise is headquartered
Notification timing: no later than 03 working days before the temporary business suspension.
Note: If the enterprise temporarily suspends its business operations, the notification must include:
- A resolution, decision, and a copy of the minutes of the meeting from the Members' Council for a limited liability company with two or more members, a partnership company, or the Board of Directors for a joint-stock company;
- A resolution, decision of the owner for a single-member limited liability company regarding the business suspension.
Step 02: The Business Registration Office checks the validity of the dossier and processes the enterprise's dossier.
- After receiving the enterprise registration dossier, the Business Registration Office issues a Receipt, checks the validity of the dossier, and issues a confirmation of the enterprise's registration for temporary business suspension.
Processing time: within 03 working days from the date of receiving a valid dossier.
- In the case of registering for a temporary business suspension, the Business Registration Office updates the legal status of the enterprise and the status of all its branches, representative offices, and business locations in the National Business Registration Database to the status of temporary suspension.
In What Cases Can State Authorities Require an Enterprise to Suspend Business Operations?
Based on Article 206 of the Business Law 2020, the regulations on temporary suspension, suspension of activities, and termination of business are as follows:
Temporary suspension, suspension of activities, termination of business
...
2. Business registration authorities and competent state authorities may require enterprises to temporarily suspend, suspend activities, or terminate business in the following cases:
a) Temporarily suspending or terminating business in conditional business lines, conditional market access professions for foreign investors when it is found that the enterprise does not meet the corresponding conditions prescribed by law;
b) Temporarily suspending business operations at the request of relevant authorities as prescribed by the laws on tax management, environment, and other relevant laws;
c) Suspending activities or terminating business in one or some business lines or in certain fields by a court's decision.
Thus, when falling into one of the following two cases, the business registration authority, or competent state authority may require the enterprise to temporarily suspend business operations, specifically including:
- Temporarily suspending business in conditional business lines, conditional market access professions for foreign investors when it is found that the enterprise does not meet the corresponding conditions prescribed by law;
- Temporarily suspending business operations at the request of relevant authorities as prescribed by the laws on tax management, environment, and other relevant laws;
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