What is the duration of business suspension period of an enterprise in Vietnam?

What is the duration of business suspension period of an enterprise in Vietnam? (Internet image) 

Regarding this issue, LawNet would like to answer as follows:

1. What is the duration of business suspension period of an enterprise in Vietnam?

Pursuant to Clause 1 of Article 66 of Decree 01/2021/ND-CP:

- 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.

Thus, according to the above regulations, each notified suspension period of an enterprise must not exceed one year.

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.

2. What are the cases where competent authorities are entitled to request an enterprise to suspend its business operation in Vietnam?

Clause 2 of Article 206 of the Law on Enterprises 2020 stipulates that the business registration authority and competent authorities are entitled to request an enterprise to suspend or terminate its business operation in the following cases:

- The enterprise does not fully satisfy the conditions for doing business in restricted business lines must suspend or terminate business operation in the corresponding business lines.

- Relevant authorities request the suspension in accordance with regulations of law on tax administration, environment and relevant laws;

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.

3. Are enterprises registering for suspension allowed to resume business ahead of schedule in Vietnam?

According to Article 66 of Decree 01/2021/ND-CP, regulations on registration of business suspension and resumption of business ahead of schedule for enterprise or its branch/representative office/business location include:

- 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.

- 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.

- The enterprise may apply for resumption of business ahead of the notified schedule and notify the resumption of business ahead of the notified schedule for its branches/representative offices/business locations at the same time. The Business Registration Office shall update the enterprise’s legal status and status of its branches/representative offices/business locations on the National Enterprise Registration Database at the same time.

Thus, according to the above regulations, businesses can request to register to continue doing business before the announced deadline.

Nguyen Ngoc Que Anh

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