Contents
I. Definition of the business suspension
According to Article 41 Decree 01/2021/ND-CP: “Business suspension is the legal status during its business suspension as prescribed in Clause 1 Article 206 of the Law on enterprises”
II. Cases of the suspension
According to Article 206 Law on Enterprise 2020, enterprises shall suspense their business in case of:
– Enterprises cannot fully satisfy conditions in restricted business lines in accordance with law.
– The suspension based on company’s decision.
– The relevant authority request the suspension in accordance with. regulations of law on tax administration, environment and relevant laws.
III. Conditions for the suspension
The enterprise shall send the notification of business suspension registration to the Business Registration Office 03 working days before business suspension
The period of business suspension must not exceed over 01 years.
During the suspension period, businesses shall fully pay the unpaid tax, social insurance, health insurance, unemployed insurance and fulfill their duty in contract with clients, employees, unless enterprises, creditors, clients and employees have another agreement.
The Business Registration Authority of the province where the enterprise or its branch/ representative office/ business location is located shall grant the business suspension certification.
V. Dossiers for business suspension registration (in case the suspension based on company’s decision)
According to Article 66 Decree 01/2021/ND-CP, the enterprise shall prepare following documents:
– The notification of business suspension;
– Decision and the copy of meeting minute of Board of the Board of Members of the multi-member limited liability company or partnerships, or of the General Meeting of Shareholders of the joint-stock company, or the resolution or decision of the owner of the single-member limited liability company on enterprise suspension.
VI. Procedures of the business suspension
Step 1: The enterprise shall send business suspension notification to The Business Registration Authority where the enterprise or its branch/ representative office/ business location is located at least 03 working days before the business suspension.
Step 2: After receiving the business registration documents, The Business Registration Authority shall give confirmation slip, examine the validity of received documents, and issue a business suspension certification at least 03 working days from the receipt of valid documents.
Step 3: The Business Registration Authority shall update the legal status of the enterprise, its branch/representative office, business location on National Registration Portal to the suspension status
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