Business Suspension and Procedures
Enterprises facing difficulties and unable to continue operating will choose to suspend business instead of going through dissolution procedures. During the period of business suspension, the enterprise will not have to submit a tax return, unless the taxpayer suspends operations or does business for less than a full month, quarter, calendar year, or fiscal year. monthly and quarterly tax declarations; annual settlement records.
What is business suspension?
Business suspension is the legal status of an enterprise that is in the process of suspending business as prescribed in Clause 1, Article 206 of the Law on Enterprises. The date of changing the legal status of “Suspended from business” is the date the enterprise registers to start suspending its business. The end date of the legal status of “Suspended business” is the end date of the this period announced by the enterprise or the date the enterprise registers to resume business before the announced time limit.
Conditions for suspension
- The enterprise must notify the temporary suspension of its operating business registration office 3 days before the enterprise suspends its operation.
The business registration agency or competent state agency may request an enterprise to suspend its business in the following cases:
- Suspend or terminate conditional business lines; industries and professions with conditional market access for foreign investors when detecting that the enterprise does not fully satisfy the corresponding conditions as prescribed by law;
- Suspend business at the request of relevant authorities in accordance with the law on tax administration; environment and other provisions of relevant laws;
Procedures for business suspension
Procedures for business suspension are specified clearly and specifically in Decree 01/2021/ND-CP issued by the Prime Minister.
- In parallel with the completion of the suspension procedure, the enterprise must also notify the business registration office where the representative office, branch, or business location has registered about the suspension. suspend operations of these representative offices, branches, and business locations.
- The time limit for making the above notification to the Business Registration Office where the representative office, branch, or business location has registered about the temporary suspension of representative offices and branches. and the location of this business is within 15 days before the suspension of business
- The notice should ensure the following basic contents:
- The first is the business name, tax code, location of the head office, and the date of issue of the Certificate of Business Registration.
- Next is the business line
- And there should be a specific time on the start and end date of this.
- For a limited liability company with 2 or more members, when the enterprise suspends its business, a notice is required, and there must be an additional decision and a copy of the valid meeting minutes of the Members’ Council.
For a one-member limited liability company, in addition to the notice of suspension, you need a valid decision from the owner of this business.
The same is true for joint stock companies. In order to complete the procedure for registration of this, it is necessary to prepare a notice with the decision, a copy of the minutes of the meeting of the Board of Directors, etc.
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