The long-running COVID-19 epidemic has seriously affected all aspects of life, economy and society. The enterprise community, in particular, is being severely impacted, particularly small and medium-sized enterprises. To overcome this challenge, many enterprises have chosen to implement the procedure of “ Enterprise suspension“. For the purpose of supporting enterprises to overcome the pandemic, Hong Bang Law Firm would like to provide advice on enterprise suspension procedures as follows:
Legal basis
- Vietnam’s law on enterprises 2020;
- Decree No. 01/2021/ND-CP on enterprise registration;
- Circular No. 01/2021/TT-BKHDT guidance on enterprise registration.
General regulations on enterprise suspension
“Enterprise suspension” is the legal status of an enterprise in the period of conducting an enterprise suspension as prescribed in Clause 1, Article 206 of the Law on enterprise 2020. The date of transfer of legal status “Suspension of enterprise” is the day the enterprise registers to start suspending operation. The end date of the legal status “enterprise suspension” is the end date of the time limit for business suspension that the enterprise has announced or the date the enterprise registers to continue doing business before the notified time limit.
Cases where business is suspended:
- Enterprises wishing to suspend;
- The enterprise that 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;
Enterprise suspension period:
According to Clause 1, Article 206 of the Law on Enterprises 2020, no later than 3 working days before the suspension date, the enterprise must notify in writing to the business registration agency about the suspension of business.
For example, on August 1st, 2021, the enterprise submitted the enterprise suspension application to the Department of Planning and Investment. Valid dossiers, enterprises are suspended from 04/08/2021. The enterprise shall suspend no more than 1 year for one registration. The total period of suspension of operation and business is not more than 2 years for two consecutive registrations.
Rights and obligations of enterprises during the enterprise suspension period
During the suspension enterprises, they shall pay the full amount of taxes, social insurance, health insurance, unemployment insurance owed; continue to pay debts, complete the performance of contracts signed with customers and employees, unless otherwise agreed upon by enterprises, creditors, customers and employees.
Dossiers and procedures
Dossier
- A copy of the minutes of the meeting of the Board of Members (for 2-member limited company or more, partnerships) / Minutes of Board of Directors meeting (for joint stock companies) on the enterprise suspension.
- Decision of the Board of Members (for 2-member limited liability company or more, partnerships)/ Decision of the board of directors (for joint stock company)/ Decision of the owner of the company (for 1-member limited liability company) on the suspension of business.
- Notice of enterprise suspension
Competent authority: Business Registration Office – Department of Planning and Investment.
Settlement time: 03 working days (from the date of fulfilling a valid application).
Services of Hong Bang Law Firm
- Advise on the appropriate type of business for clients;
- Draft, prepare and check the validity of the dossier;
- Work with state authorities;
- On behalf of the customer to receive the results;
- Hand over the results to the customer.
If you need more detailed advice and answers as well as how to access this service, please contact directly our Lawyer Nhat Nam via hotline: 0912.35.65.75, 0912.35.53.53 or call the toll free legal consultation hotline 1900.6575 or send a service request via email: lienheluathongbang@gmail.com
Wishing you and your family good health, peace and success!
Best regards!
