The Differences Between Dissolution and Temporary Suspension of Business
Based on: Enterprise Law 2014 and Decree 78/2015/ND-CP
| Criteria | Temporary Business Suspension | Dissolution |
| Definition | Is the case where an enterprise temporarily ceases production and business activities for a period of time and after the temporary suspension period, the enterprise will return to normal operations. | Is the termination of the existence of an enterprise in the market. |
| Conditions | Must notify in writing about the time and duration of the suspension or resumption of business to the Business Registration Office at least 15 days before the suspension date. | The enterprise can only be dissolved when it ensures the payment of all debts and other asset obligations and the enterprise is not in the process of resolving disputes at the Court or arbitration body. |
| Procedures | Step 1: The enterprise sends a written notice to the Business Registration Office at least 15 days before the business suspension date. Step 2: The Business Registration Office issues a receipt to the enterprise after receiving the notice of business suspension. Step 3: Within 03 working days from the date of receipt of the valid dossier, the Business Registration Office issues a confirmation of the enterprise's registration for temporary business suspension. |
Step 1. The enterprise must carry out procedures to terminate the operations of its branches, representative offices, business locations (if any). Step 2. Within 07 working days from the date of passing the dissolution decision, the enterprise sends a notification of dissolution to the Business Registration Office. Step 3. The Business Registration Office sends information on the enterprise registration for dissolution to the tax authority. Within 02 working days from the date of receipt of information from the Business Registration Office, the tax authority sends its opinion on the dissolution of the enterprise to the Business Registration Office. Step 4. Within 05 working days from the date of receipt of the dissolution dossier, the Business Registration Office changes the legal status of the enterprise in the National Business Registration Database to the dissolution status if no objection is received from the tax authority, and simultaneously issues a Notice of dissolution of the enterprise. Step 5. The enterprise returns the seal, Certificate of Seal Sample Registration to the police department for issuance of a certificate of seal recovery (if any). |
| Consequence | The enterprise only ceases operations for a period of time. | The termination of an enterprise's existence. |
The above is the supporting content.
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