I. When businesses temporarily suspend business do they have to notify?
According to the provisions of Article 206 of the Enterprise Law 2020 on suspension, suspension of operations, and termination of business as follows:
1. An enterprise shall send a written notification to the business registration authority at least 03 working days before the suspension or resumption date.
2. The business registration authority and competent authorities are entitled to request an enterprise to suspend or terminate its business operation in the following cases:
a) 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.
b) Relevant authorities request the suspension in accordance with regulations of law on tax administration, environment and relevant laws;
c) Operation in one or some business lines have to be suspended or terminated under a court decision.
When an enterprise temporarily suspends business, it must carry out notification procedures and notification must be made no later than 03 working days before the date of business suspension.
In addition, business registration agencies and competent state agencies can also request enterprises to temporarily suspend business if they fall into the cases specified in Clause 2, Article 206.
Thus, when temporarily suspending business, it is mandatory to notify the competent authorities about the suspension. If the business management agency inspects the enterprise and discovers that it is not actually operating at that branch, while there is no notice of temporary suspension of operations, it will be subject to administrative sanctions.
II. Procedures for temporary business suspension
(1) Notice of temporary business suspension of the enterprise (according to the form in Appendix II-19 issued with Circular 01/2021/TT-BKHDT);
(2) Decision and copy of meeting minutes of the Board of Members (for limited liability companies with 2 or more members), Decision and copy of meeting minutes of the Board of Directors (for joint stock companies); Decision of the company owner (for one-member limited liability company) on temporary suspension of business.
Method 1: Submit the application directly to the Business Registration Office under the Department of Planning and Investment of the province or city where the business is headquartered.
Method 2 – Submit the application for business suspension online, 3 steps are as follows:
Step 1: Submit the application at the National Business Registration Portal (If you do not have one, register an account);
Step 2: Pay fee and register post office;
Step 3: Receive results if results are valid;
To save time on researching procedures, filling out forms, notarizing, and waiting to submit documents, you can contact HT for consultation and assistance for Enterprise Law.
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