The illustrative Notification of Business Suspension of Companies in 2024 in Vietnam
What is the illustrative Notification of Business Suspension of Companies in 2024 in Vietnam? - Ms. Huyen (Ha Noi)
The illustrative Notification of Business Suspension of Companies in 2024 in Vietnam
In Appendix II-19 issued with Circular 01/2021/TT-BKHDT, there are provisions regarding the illustrative Notification of Business Suspension of Companies. You may find it here.
The illustrative Notification of Business Suspension of Companies in 2024 in Vietnam - image from internet
What are obligations of enterprises in Vietnam during the suspension period?
Pursuant to Clause 3 Article 206 of the Law on Enterprises in 2020 stipulating obligations of enterprises in Vietnam during the suspension period:
Business suspension and termination
...
3. During the suspension period, the enterprise shall fully pay the unpaid taxes, social insurance, health insurance, unemployment insurance premiums and fulfill contracts with its clients and employees, unless otherwise agreed by the enterprise, creditors, clients and employees.
4. The Government shall elaborate the procedures for cooperation between the business registration authority and other competent authorities mentioned in Clause 2 of this Article.
As regulations above, during the suspension period, enterprises in Vietnam have following obligations:
- Fully pay the unpaid taxes, social insurance, health insurance, unemployment insurance premiums
- Fulfill contracts with its clients and employees, unless otherwise agreed by the enterprise, creditors, clients and employees.
How long can an enterprise in Vietnam suspend its business?
Pursuant to Clause 1 Article 66 of the Decree 01/2021/ND-CP stipulating following regulations:
Registration of business suspension and resumption of business ahead of schedule
1. When an enterprise or its branch/representative office/business location suspends its business or resumes its business ahead of schedule, the enterprise shall send a notification to the Business Registration Office of province where the enterprise or its branch/representative office/business location is located at least 03 days before the planned date of suspension or resumption. If the enterprise or its branch/representative office/business location is still suspended after the notified suspension period, another notification must be sent to the Business Registration Office at least 03 days before the planned date of suspension. Each notified suspension period must not exceed one year.
...
As regulations above, an enterprise in Vietnam may suspend its business for one year for each notified suspension period.
If the enterprise is still suspended after the notified suspension period, it may send another notification for another suspension period.
What are procedures for registration of business suspension in Vietnam?
Pursuant to Article 66 of the Decree 01/2021/ND-CP stipulating procedures for registration of business suspension in Vietnam:
Step 1: When an enterprise or its branch/representative office/business location suspends its business or resumes its business ahead of schedule, the enterprise shall send a notification to the Business Registration Office of province where the enterprise or its branch/representative office/business location is located at least 03 days before the planned date of suspension or resumption.
If the enterprise or its branch/representative office/business location is still suspended after the notified suspension period, another notification must be sent to the Business Registration Office at least 03 days before the planned date of suspension. Each notified suspension period must not exceed one year.
Note: In case of business suspension, the notification must be enclosed with the resolution or decision and the copy of the minutes of meeting of the Board of Members of the multi-member limited liability company or partnership, or of the Board of Directors of the joint-stock company, or the resolution or decision of the owner of the single-member limited liability company on business suspension.
Step 2: After receiving the application for enterprise registration, the Business Registration Office shall give a confirmation slip, examine the validity of received documents, and issue a certification that the enterprise or its branch/representative office/business location has registered the business suspension or resumption of business ahead of schedule within 03 working days from the receipt of satisfactory documents.
Step 3: When the enterprise applies for registration of business suspension, the Business Registration Office shall change the enterprise’s legal status and status of its branches/representative offices/business locations on the National Enterprise Registration Database to “business suspension”.
Best regards!
